As Nigeria faces persistent power supply challenges and an unreliable national grid, renewable energy, particularly solar, offers a viable solution to address the country’s energy deficit while catering to millions of Nigerians.
Solar energy not only promises to close the energy gap but also unlocks vast opportunities for job creation and investment, fueling capital inflow and alleviating the nation’s power crisis.
In this exclusive interview, Bome Ojoboh, founder and CEO of Extreme Mutual Limited—a company specializing in solar energy installations and construction services—shares insights into his journey within the renewable energy space.
He explores the transformative potential of solar panels for job creation, investment growth, and bridging the gap between Nigeria’s power grid and alternative energy sources.
Nairametrics: Can you tell us a bit about yourself, your company, and how you got involved in the renewable energy business?
I am the founder of Extreme Mutual Technique Limited, a company specializing in solar energy installations and construction services. My journey into renewable energy was inspired by a deep desire to provide reliable and sustainable energy solutions, particularly in Nigeria.
Given my extensive experience in project management and construction, I saw solar energy as a viable means to address Nigeria’s persistent energy challenges, especially in off-grid areas. Solar energy can transform not just businesses but entire communities by providing clean, reliable electricity.
Nairametrics: What do you see as the biggest challenge for solar energy adoption in Nigeria, especially in rural areas?
The biggest challenge for solar energy adoption in Nigeria, particularly in rural areas, is infrastructure and affordability. Despite the growing awareness, many rural communities struggle with high upfront costs and a lack of technical knowledge for installation and maintenance.
Also, unreliable road networks and grid connectivity make it harder to set up solar farms. Financing options like pay-as-you-go models or subsidies could mitigate this.
Nairametrics: How can the Nigerian government encourage more private investments in the renewable energy sector?
To boost private investment, the Nigerian government could offer more tax incentives and grants for renewable energy companies. The Nigerian Energy Regulatory Commission (NERC) has made strides with initiatives like the Rural Electrification Fund, but more can be done. Streamlining regulatory processes, creating public-private partnerships (PPPs), and reducing import duties on renewable energy components will attract more private investors.
Nairametrics: What role do you think solar energy can play in addressing Nigeria’s power grid issues?
Solar energy can be a game changer for Nigeria’s power grid. As of 2022, Nigeria’s grid capacity was only 12,500 MW, but actual power generation hovered around 4,000 MW. Solar energy can supplement this deficit, especially in regions far from grid infrastructure. Mini-grid and off-grid solar solutions offer alternative sources of power to underserved communities and reduce the burden on the national grid. With proper integration, solar energy can play a critical role in decentralizing power and stabilizing the grid.
Nairametrics: How can local solar companies overcome the issue of high upfront costs for consumers?
Local solar companies can mitigate high upfront costs through innovative financing models, such as leasing and pay-as-you-go (PAYG) solutions. These methods spread out the cost over time, making solar more accessible. In fact, PAYG solar models have gained popularity in East Africa, providing affordable energy to rural households. Such models can work in Nigeria with adequate financial backing from both private investors and government subsidies.
Nairametrics: How do you assess the potential of mini-grid and off-grid solar solutions to provide reliable electricity in Nigeria?
Mini-grids and off-grid solar solutions hold enormous potential for Nigeria. According to the World Bank, about 85 million Nigerians still lack access to electricity, and mini-grid solar systems can be used to bridge this gap, particularly in rural areas. These systems can operate independently of the national grid, ensuring consistent power supply. Successful projects, like the mini-grids deployed by the Rural Electrification Agency (REA), demonstrate the viability of solar for community-based electricity generation.
Nairametrics: What are the biggest regulatory hurdles facing renewable energy companies in Nigeria today?
One of the most significant hurdles is the bureaucracy surrounding licensing and tariffs. Solar companies often face delays in obtaining licenses and meeting regulatory requirements from multiple agencies, including NERC. The lack of clear policies on net metering and feed-in tariffs also complicates matters for solar providers who wish to sell surplus energy back to the grid.
Nairametrics: How can international partnerships help accelerate the transition to renewable energy in Nigeria?
International partnerships can bring in the much-needed expertise and funding for Nigeria’s renewable energy sector. The World Bank and African Development Bank (AfDB) have already supported renewable energy projects in Nigeria through the Nigeria Electrification Project. Partnerships with organizations such as the Global Environment Facility (GEF) and countries with advanced solar infrastructure can help bring best practices and technological advancements to Nigeria.
Nairametrics: Are there any successful examples of solar energy projects that have significantly impacted communities or businesses in Nigeria?
One notable example is the Sosai Renewable Energies Company in Northern Nigeria. They deployed solar-powered water pumps and mini-grids in rural areas, positively impacting over 100,000 households. Projects like these have improved agricultural productivity by providing reliable power for irrigation, as well as health and education services by powering clinics and schools.
Nairametrics: Lastly, What’s the future of renewables in Nigeria, particularly as pertaining to its contribution to GDP?
By 2030, renewable energy could contribute significantly to Nigeria’s GDP. According to PwC, Nigeria’s renewable energy sector has the potential to create over 250,000 jobs in the next decade, contributing billions to the economy. If policies align with global climate goals, solar energy could become a primary source of power for industries and households, contributing to Nigeria’s GDP while helping the country reduce its reliance on fossil fuels.
