“I think one energy mix or one energy cap does not fit all so that is why it’s critical for us to begin to harness the prospects and the opportunities to add to what we already have on the national grid,” Femi Oye, CEO at Green energy and Biofuels told CNBC Africa.
In 2008, the federal government set out very ambitious plans to contribute about 13 per cent of the energy mix in terms of contributions to what we currently have from the national grid. The plan was to add the mini hydro, solar, wind, biomass and natural gas to this.
“Largely, a lot of factors contribute to why we haven’t been able to achieve the massive growth that we set out to but then, the industry is opening up, investments are coming in and of course, we are getting some support from the government,” he said.
Despite sources of alternative energy being used in some pockets around the country, the national output is still dropping and the country is still producing less than 4,000 megawatts.
“Why it hasn’t been so obvious is actually as a result of the set back that we have in Africa as a whole. We look at our reforms and a lot of other factors that have set it back. It’s not predictable. Another government comes in, a new direction,” he explained.
According to Oye, the right policies and infrastructure need to be put in place by the government to enable the industry in Nigeria. However, he believes that the government bringing the private sector into the industry can be the key driver in bringing about change.