A Solar Energy Consultant, Mr Yemi Kolawale, has asked the Federal Government to give concessionary loans to renewable energy producers, to ensure the sector grows.
Kolawale, who is the Chief Executive Officer of Topian Energy Services, made the assertion in Lagos on Wednesday.
He said that granting concessionary loans in one digit rate would enable producers to expand in no distant time.
“The current rates at which banks give loans at two digit interest rates, is not business friendly.
“ The high interest rates issued on loans is one of the major drawbacks impeding renewable energy penetration,” he said.
He noted that there was need for the Federal Government to give import wavers to dealers of renewable energy because almost all the parts of the unit are imported.
“ This will make renewable energy more affordable and penetrate the economy more.
“ Then, the sector can contribute adequately to power generated in the country,” he said.
According to Kolawale, renewable energy is the best for Nigeria due to its environmentally friendly nature.
Vice President Yemi Osinbajo had disclosed that Nigeria was planning to have at least 30 per cent of its total electricity supply from renewable sources, majorly solar power in the next nine years.
Osinbajo spoke at the inauguration of a 1.12MW Solar Hybrid Project at the Abubakar Tafawa Balewa University, Bauchi.
The vice president noted that the ongoing projects being executed by the Rural Electrification Agency (REA) were critical to the achievement of that objective and reduction of Nigeria’s carbon footprints.