Chairman of AO Demarg, General Ademola Fadunsi, rtd, has blamed banks for the slow pace of solar energy investments in Nigeria, saying the refusal of banks to grant loans to investors in the sector had made investment difficult. Fadunsi speaking in Abuja said that local banks were not willing to assist solar energy investors with credit facility to develop the country’s solar energy sub-sector even when according to him, many people were now embracing solar power as 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.” He added that with the interest government was showing in the solar energy business, 2018 would be promising. He said “Government is now showing more interest in the solar energy business, they have through the Bank of Industry, released about N2 billion solar fund for individuals and investors to access for the purpose of solar power. I think it’s a good start and in a right direction.
“With what the government is doing in the area of mini grid, 2018 seems promising especially by its ongoing partnership with the World Bank in this area. We see a better future next year.” He particularly lauded the government for providing a level playing ground for all players in the solar industry, saying the development had encouraged local investors not to look back in their efforts to develop the sector.
“The government is giving everybody a level playing ground depending on your capability or technical knowhow and financial backup because even though they are giving out funds too, you as an investor or vendor, you must contribute some certain percentage to keep the commitment so that you won’t see the money given to you as free money, “he said.
