“Major Challenges Affecting Solar Energy Adoption in Nigeria and Solutions” – Bome Ojoboh, CEO, Extreme Mutual Limited

As Nigeria faces ongoing energy supply challenges and an unreliable national grid, renewable energy, especially solar, offers a viable solution to the country’s energy deficit while meeting the needs of millions of Nigerians.

Solar energy not only promises to fill the energy gap, but also opens up huge opportunities for job creation and investment, driving capital inflows and easing the country’s energy crisis.

In this exclusive interview, Bome Ojjoboh, Founder and CEO of Extreme Mutual Limited – a company specializing in solar energy installations and construction services – shares insights into his journey in the renewable energy space.

It explores the transformative potential of solar panels to create jobs, increase investment and bridge the gap between Nigeria’s power grid and alternative energy sources.

Nairametrics: Can you tell us a little about yourself, your company and how you engage in the renewable energy business?

I am the founder of Extreme Mutual Technique Limited, a company specializing in photovoltaic installations and construction services. My renewable energy journey was inspired by a deep desire to provide reliable and sustainable energy solutions, especially in Nigeria.

Given my extensive experience in project management and construction, I identified solar energy as a viable way to address Nigeria’s persistent energy challenges, especially in off-grid areas. Solar energy can transform not only businesses, but entire communities by providing clean and reliable electricity.

Nairametrics: What do you consider to be the biggest challenge in solar energy utilization in Nigeria, especially in rural areas?

The biggest challenge in adopting solar energy in Nigeria, especially in rural areas, is infrastructure and affordability. Despite growing awareness, many rural communities struggle with high upfront costs and a lack of technical knowledge for installation and maintenance.

Additionally, unreliable road networks and grid connectivity make it difficult to set up solar farms. Financing options such as pay-as-you-go models or grants could alleviate this situation.

Nairametrics: How can the Nigerian government encourage more private investment in the renewable energy sector?

To boost private investment, the Nigerian government could offer more tax incentives and subsidies to renewable energy companies. The Nigerian Energy Regulatory Commission (NERC) has made progress through initiatives such as the Rural Electrification Fund, but more can be done. Streamlining regulatory processes, creating public-private partnerships (PPPs) and reducing import tariffs on renewable energy components will attract more private investors.

Nairametrics: What role do you think solar can play in solving Nigeria’s power grid problems?

Solar power could be a game changer for Nigeria’s power grid. As of 2022, Nigeria’s grid capacity was only 12,500 MW, but actual power production was around 4,000 MW. Solar energy can make up for this deficit, especially in regions far from grid infrastructure. Mini-grid and off-grid solar solutions offer alternative energy sources to underserved communities and reduce the burden on the national grid. With proper integration, solar energy can play a key role in decentralizing power and stabilizing the grid.

Nairametrics: How can local solar companies overcome the problem of high upfront costs for consumers?

Local solar companies can reduce high startup costs with innovative financing models such as leasing and pay-as-you-go (PAYG) solutions. These methods spread costs over time, making solar energy more affordable. In fact, PAYG solar models have gained popularity in East Africa, providing affordable energy to rural households. Such models can work in Nigeria with appropriate financial support from both private investors and government subsidies.

Nairametrics: How do you assess the potential of mini-grid and off-grid solar solutions in providing reliable electricity in Nigeria?

Mini-grids and off-grid solar solutions have huge potential for Nigeria. According to the World Bank, about 85 million Nigerians still have no access to electricity, and mini-grid solar systems can fill this gap, especially in rural areas. These systems can operate independently of the national grid, providing constant power. Successful projects, such as the mini-grids implemented by the Rural Electrification Agency (REA), demonstrate the viability of solar energy in generating electricity in communities.

Nairametrics: What are the biggest regulatory hurdles facing renewable energy companies in Nigeria today?

One of the most important obstacles is the bureaucracy related to licenses and tariffs. Solar energy companies often face delays in obtaining licenses and meeting regulatory requirements from multiple agencies, including NERC. The lack of clear policies around net metering and feed-in tariffs also complicates the situation for solar providers who want to sell excess power back to the grid.

Nairametrics: How can international partnerships help accelerate the transition to renewable energy in Nigeria?

International partnerships can provide much-needed expertise and financing for Nigeria’s renewable energy sector. The World Bank and the African Development Bank (AfDB) have already supported renewable energy projects in Nigeria as part of the Nigeria Electrification Project. Partnerships with organizations such as the Global Environment Facility (GEF) and countries with advanced solar infrastructure can help bring best practices and technological advances to Nigeria.

Nairametrics: Are there any successful examples of solar energy projects that have made a significant impact on communities or businesses in Nigeria?

A notable example is the Sosai Renewable Energies Company in northern Nigeria. They have deployed solar-powered water pumps and mini-grids in rural areas, which has had a positive impact on over 100,000 households. These types of projects have improved agricultural productivity by providing reliable power for irrigation, as well as health and education services by powering clinics and schools.

Nairametrics: Finally, what is the future of renewable energy in Nigeria, especially in terms of its contribution to GDP?

By 2030, renewable energy has the potential to contribute significantly to Nigeria’s GDP growth. According to PwC, Nigeria’s renewable energy sector has the potential to create over 250,000 jobs in the next decade, contributing billions to the economy. If policies are aligned with global climate goals, solar energy could become a major source of energy for industry and households, contributing to Nigeria’s GDP while helping the country reduce its dependence on fossil fuels.