REAN Commends the Federal Government on Signing the 2023 Electricity Act and calls for the Removal of Persistent Barriers to the Growth of the Renewable Energy Sector
A publication released on August 7, 2023, through The Nation Newspaper.
The Renewable Energy Association of Nigeria (REAN) commends President Bola Ahmed Tinubu for signing the new Electricity Act into law on June 9, 2023. We recognize the significant impact of electricity and firmly believe that the effective implementation of this act will unlock opportunities to expand Nigeria’s renewable energy (RE) sector. This expansion will significantly increase revenue generation, attract investment, promote economic development, and substantially reduce unemployment.
As an association, our objectives include assisting the government and industry in all matters related to renewable energy technologies, including energy policy formulation, standards, and taxation. With a mission to be the umbrella association for all renewable energy promoters, enabling and encouraging the sustainable development of the Nigerian economy through renewable energy. We are impressed by this development and remain open to collaborating strategically with all stakeholders to ensure the implementation of the electricity law. This will optimize the utilization of renewable energy sources and contribute to the national energy needs of Nigerians.
Given the immense potential of renewable energy, it is noteworthy to highlight the importance of expanding and the need to address the persistent barriers confronting the sector. First, favourable policies and regulations must be effectively implemented and enforced to achieve the desired change. Additionally, difficulties in accessing foreign exchange for the smooth running of RE businesses should be addressed.
High import duties, taxes, and excessive levies on the importation of renewable energy technologies have hitherto contributed to the high upfront costs of RE solutions and hindered their adoption. Addressing these challenges is crucial to significantly reducing energy poverty in the country and bridging the energy gap.