Yemisi Izuora
Sterling Bank Limited has stepped up collaboration with critical stakeholders in the renewable energy industry to explore ways to accelerate action in the sector and bridge the energy gap in the country, estimated at about $23bn.
The maiden edition of the colloquium, held in Lagos, aimed to identify priority areas for action to increase energy access and drive economic growth in the quest to attain a one trillion-dollar economy.
The colloquium was held under the theme ‘Beyond the Grid: Unlocking New Frontiers in Renewable Energy’ and had in attendance top government functionaries and players from the private sector.
Managing Director/Chief Executive Officer of Sterling Bank Limited, Mr Abubakar Suleiman, in his opening address, highlighted the bank’s desire to have an impact on the lives of people.
Represented by the Group Executive, Corporate & Investment Banking, Dele Faseemo, Suleiman, explained that Sterling Bank will be paying closer attention to policy actions in two or three key priority areas, especially regulation and financing.
He noted that by focusing on these areas, the Bank can do more to drive progress and expand access to energy, which he described as essential for supporting economic growth and overall development.
He said, “If you take it from the national priority standpoint, for an economy that is targeting a $1tn size, we know that energy availability, solving the energy problem, is critical. Therefore, we have to continue to speak about it, and in fostering our leadership in this space, we think that it is about time that we gather all the stakeholders in a room and have a conversation about this.
“For us at Sterling, it is about accelerating action. How do we give more access to more people? And as the theme of the colloquium says, beyond the grid, how do we capitalise on the abundant renewable energy sources that we have in Nigeria? And let’s not limit ourselves to solar, even though that may be the most abundantly available. Today, we know that the contribution of hydropower to the national grid is also significant. We need to push the frontiers and be able to deliver renewable energy to as many people as possible. For me, when we step out into a typical city in Nigeria, we want to see solar panels on all the roads.”
In a keynote address titled ‘Scaling Electrification in Nigeria: The REA Impact’, Managing Director/Chief Executive Officer of the Rural Electrification Agency, Dr Abba Aliyu, said REA was focused on three key areas, including energy security, energy equity and environmental sustainability.
Represented by Senior Advisor to the MD, Mr Abba Hayatudden, Aliyu said, “We know that most investors take sustainability seriously, and that is where renewable energy comes into play. We at the REA did a cost analysis of what it would take to connect every last mile to the grid based on the most efficient technology, and we found that figure to be about $23bn. This is what we need to achieve universal access.
“Now, I don’t have to tell you that public funding alone is insufficient; we have to put structure in place to mobilise private capital at scale. That is why forums like this are critical. Added to that is the energy transition drive that we have in the country, which is about a $410bn opportunity up to 2060 or a $410bn challenge, depending on how you look at it.”
The CEO, added that the energy transition in Nigeria is a strategic shift towards achieving universal, reliable and sustainable energy access by integrating the grid, mini-grid and off-grid technologies while aligning with national development and climate goals.
“REA is strategically expanding and optimising channels to accelerate the adoption and sustainable growth of renewable energy across the country in the areas of value chain development, regulation enhancement, funding windows, alternative resources and technical standardisation,” he said.
Minister of Power Adebayo Adelabu, who was represented by Engineer Samuel Ayangeaor, commended Sterling Bank for convening the conversation on renewable energy.
He stated that the Federal Government has placed renewable energy and rural electrification at the heart of the Renewed Hope Agenda: “The Federal Ministry of Power has continued to expand electricity access to underserved communities in a bid to drive economic growth, foster industrial activity, and create jobs across the nation.”
Also speaking, Lagos State Commissioner for Energy and Mineral Resources, Odun Ogunleye, noted that the current administration is implementing the most ambitious energy transformation ever undertaken.
He highlighted the state’s efforts in renewable energy and sustainability, including the two-gigawatt Lagos grid-scale solar project.
The CEO of Sterling One Foundation, Mrs Olapeju Ibekwe, emphasised the need for collective action in reducing energy poverty.
“At Sterling Foundation, we see a Nigeria where no one would ever lack power again. We believe this is possible, but we know it can only be done through multi-level, multi-sectoral partnerships, which is why we sincerely commend the leadership of Sterling Bank on this timely event. With a $10bn annual financing gap for the transition of energy in Nigeria, it is clear that we need various forms of capital to make that happen.
“At the Sterling One Foundation, we prioritise action, and this is a call for anyone in the room or watching us online. If you have available catalytic concessional capital to be able to accelerate action in renewable energy access in Nigeria, we will be glad to work with you to ensure that this funding gets to the right people. Let us ensure that whatever deliberations we have today do not remain as conversations and notes in our books and in the communique. Let us ensure that, working within our network, we act intentionally with focus on impact. Here’s why. Access to power means access to education, access to healthcare services, access to a better economy, and access to better food quality. For us, access to power is synonymous with access to life,” she said.