Article by ESI Africa
Nigerian solar energy expert, Ademola Fadunsi, has questioned the financial industry for its slow pace of solar energy investments, saying the inability of local commercial banks to grant loans to investors in the sector has impeded market growth.
However, speaking in Abuja this week, the retired military general and chairman of AO Demarg – a solar energy service and equipment supplier – did applaud Federal Government for releasing N2 billion ($5.5 million) through the Bank of Industry (BoI), for industry investors to access, reported Vanguard Nigeria.
The BoI had launched its Solar Energy Fund for Micro, Small and Medium Enterprises (MSMEs) in January 2017.
Commercial banks have a responsibility
Fadunsi expressed regret that local banks were not willing to assist solar energy investors to develop the country’s solar energy sub-sector even when, according to him, many people were now embracing solar power as an alternative and reliable source of energy.
He said: “Let me say here that we in the business need long-term financial backup from financial institutions but unfortunately, in Nigeria today, local banks are not giving out loans to anybody.”
Emphasising the role of government, he cautioned commercial banks to take heed of the interest government was showing in the solar energy business, stating that 2018 would be promising.