By Prince
Okafor
British
envoy has urged Nigeria to diversify its economy especially in the area of
renewable energy in powering the country, saying that this is the optimal way
to balance the current dip in international oil prices.
Economy
The
British High Commissioner, Mr. Paul Arkwright, also noted that with oil revenue
making up to 80 percent of the country’s budget, “Oil and gas remain extremely
important to Nigeria as the main revenue earning for the government and it will
stay like that for a longer while. I’m sure because of the reduction in oil
price in the country, it has actually created a serious impact in the
government revenue that is why the government needs to diversify the economy
beyond oil and gas, diversifying the economy is a key, I’m not too sure if the
price will rise or reduce,” he said.
He argued
that for the country to attract foreign investors in the oil and gas sector,
the Petroleum Industry Bill, PIB needs to be passed by the National Assembly,
saying that the non-passage of the PIB is hindering investors from coming in.
His
words: “To attract foreign investor in the country, the number one thing is to
pass the PIB. The PIB has been in the National Assembly for more than seven
years. I do think that it’s time for the PIB to be released; it is time it is
passed. It should be done with the cooperation of the international oil
companies because they will bring huge amount of employment to this country. If
this is done, you will see increased interest in investment in the oil and gas
sector from international companies.
“Without
power there can be no strengthening of the economy. Solar is a good example,
and we are already helping the Nigeria government with that. But financing is
very important and British banks are very well vast in financing power
infrastructure. There is the need for large scale insurance, that’s where
expertise can come in, good governance, partnership with the government is very
important.
Energy
access agreement
I’m not
saying you must do this or you must do that. The Nigeria vice president was in
London recently at a major launch with the UK minister, who was also here in
the country, of what we call the Energy Access Africa campaign,” he added
Recall
Vice president Yemi Osinbanjo signed the energy access agreement with the UK,
in which the UK government will increase the deployment of solar energy to the
West African country’s rural communities and also help Africa achieve universal
energy access by 2030.
UK
Minister of State for International Development, Mr. Grant Shapps, signed the
agreement on behalf of the UK government.
Osinbajo
said: “With the cost of solar power 20 years ago that would have been
impossible; the combination of innovation in technology, the low cost of solar
power has made this all the more possible.
“This is
an incredible opportunity in Africa, especially Nigeria, with over 96 million
people who do not have access to power.”
Osinbajo
noted that the use of kerosene had created a lot of safety and environmental
issues, adding: “A default energy source should be solar and the option was not
available for so long, but now it is cheaper, safer, and more environmentally
friendly.”
The Chief
of Party, USAID Nigeria Renewable Energy and Energy Efficiency Project, REEEP,
Mr. Javier Betancourt, also argued that solar system can help to power the
country such that its economy can attract more foreign investors.
According
to Javier, “Foreign Investors are attracted by profitability of investments and
unreliable and expensive energy will always result in reduced profitability.
Solar systems are reliable and cost effective therefore widespread use of these
systems will result in reducing the energy constraint and increase
profitability. Increased profitability will result in increased interest by
foreign investors.”
