Bank of Industry, corporate office, Abuja
In pursuance of its Green Energy Project and with the top world investment direction by top corporations and riches individual, the Bank of Industry (BoI) launched its N1billion solar energy fund to boost its off-grid electricity generation project.
Speaking at the event yesterday in Lagos, acting managing director of the bank, Waheed Olagunju, explained that the fund is a concessional financing initiated by the bank as a result of poor cash floor in the rural areas.
Olagunju said the project considers supply of electricity to Micro, Small and Medium Enterprises, MSMEs, to boost their production and make them competitive. The fund would be made available to firms partnering with the bank in the development of solar energy services across the country, he noted.
Actg managing director further pointed out that the initiative will help reduce cost of business, as current study shows that alternative power source costs
40 percent of expenditure by the manufacturing sector.
The bank, according to him, spent about N240 million for six pilot solar projects in the geo-political zones of the country in 2016.
He also said many Nigerians and Nigerian businesses that can afford other alternative energy sources have resorted to the use of electric generators at exorbitant costs. It was estimated that in 2015, manufacturers spent as much as N3.5trillion to generate alternative power due to the challenges in the supply of public electricity.
The former broadcaster Olagunju disclosed that the cost of electricity accounts for about 40 percent of operational expenses for most MSMEs, resulting in reduced profit margins, uncompetitive and generally unsustainable ventures.
‘‘For Nigeria to therefore achieve sustainable and inclusive development, there is an urgent need to substantially increase the supply of modern and affordable energy services from sources that are affordable, accessible and environmentally friendly.
‘‘A robust mix of energy sources combined with an improved end-use efficiency, would be required to meet the country’s energy needs, and this is where the utilization of renewable energy sources come into play,” he said.
“According to research, Saudi Arabia, a country with enough cheap oil to last for a hundred years is investing a staggering 100 nine billion dollars to commercialize this new energy this fuel is so cheap so abundant and so easy to access that the Saudi oil minister ali al nami says the country could completely stopped using oil and gas.”
BoI encourage investment in solar energy systems to capture the cleanest energy from the sun to power Nigeria industrialisation concepts.