Sweet Crude

December 10, 2012

‘Privatisation alone can’t solve Nigeria’s power problem’

The Executive Marketing Manager of Stormberg Power, Mr. Adefola Adebanjo, in this interview with KUNLE KALEJAYE, is optimistic that solar energy can effectively work within the Nigerian terrain, like Germany and the United States, leading countries when it comes to using solar energy in powering their country. Excerpts:

How would you describe Nigeria’s Power Sector?

The availability of constant power supply has hindered populace empowerment. With a population in excess of 150 million people, about 3,700MW of electricity is grossly inadequate and unacceptable.

In your view, what is Nigeria’s power problem?

In my opinion, our main issues can be attributed to monopoly in the sector, expanding without expansion capabilities, obsolete technologies, lack of maintenance culture, and corruption.

Do you think the country’s power problem can be fixed?

Yes it can. For instance, the privatization by the Federal Government is a welcome development. However, this alone cannot alleviate the power problem facing Nigeria. There is need for all facets of the sector to embrace adequate planning, setting of achievable targets, investment in alternative sources of energy, and accountability.

What is the role of alternative energy in all these?

As Nigeria is an emerging economy, alternative energy would have a favourable effect on the country as a whole. The government can initiate policies to drive down cost of energy technologies, research and development and manufacturing incentives that can make these technologies more affordable to the populace. Furthermore, new energy models like non grid system can be introduced and business ventures that would attract companies looking to access this alternative energy market created.

Are Nigerians responsive in the area of solar energy adoption?

Most Nigerians don’t understand the concept of using the sun to generate electricity. We at Stormberg Power are working to create public awareness of the technology and how it can be easily deployed to the populace.

We are willing to delve into the private sector; we want to address that lack of confidence in people when it comes to solar power. I have talked to a number of people who said that solar don’t work in Lagos but the truth of the matter is that the amount of sun light emanating from Nigeria is greater than what Germany and the United States have.

Germany is the leading the country when it comes to solar usage to power their country, so there is no reason why solar cannot work in Nigeria. It is all about proper implementation to ensure that it works in different locality in the country.

What could be done to encourage the adoption of solar technology?

Firstly, we need to understand that solar can work in Nigeria. I have heard from a lot of people that solar power cannot work in some states. We are blessed with more sunlight than leading solar user countries. That been clarified, as a technology in its infancy, adequate awareness/education is key in encouraging solar adoption.

Many people either haven’t heard of solar or are not convinced of its potentials. Some see the huge capital investment cost as a major deterrent, but proper education including fact- based report like cost benefits analysis will go a long way in combating such fear.

Does government have any role to play in this regard?

They are the major players. The government needs to create incentive/subsidy package to encourage the early players in the industry. This could be in form of solar import tax rebates, net metering packages, etc.

What is your take on the current privatization exercise of PHCN?

Privatization of PHCN is the right step in ensuring competition. However, the ability of the selected companies to provide power as needed by the populace is yet to be seen.

Doing business in Nigeria, what are your challenges?

Nigerians are generally scared of change. In order to achieve change, we have to give up a lot of things which we deemed the norms. For instance, it has been hard convincing people to ditch their generating sets for a hazard free hybrid system. In our line of business, it is a continual process educating the people on the advantages of a green economy. Patience has been our key word as we continually strive to light up Nigeria.

How long have you been in Nigeria?

We have been in Nigeria for over two years and have been privileged to execute various projects across the country. We are currently working on expanding our services to West African countries. Our ultimate goal is to be the leading energy provider in Africa.

What is your firm’s investment plan in the next 5 years?

At Stormberg, we strive to be the innovators in our industry. We plan to continually invest in Research and Development and training of our staff to continually compete in this ever shrinking global world.