Prospects and Challenges of Investment in Renewable Energy Potentials of Nigeria

Abstract

Researches have shown that Nigeria has abundant renewable and nonrenewable energy to meet its energy demands and even supply its neighboring countries. Fossil fuel and hydro resources substantially dominated her energy supplies for many decades. Yet, the country is suffering from epileptic power supply owing to some teething problems thereby crippling its drive for industrialization and economic prosperity. In her attempt to redress her energy sector crises and energy deficiency needs in particular, the country is positioning herself to explore and exploit her alternative cleaner sources of energy popularly known as ‘renewable energy’ that are in abundance but not tapped to the fullest, while grappling to see how it will fix the problems embedded in its conventional ‘fossil fuel’ energy sector. The prospect of Nigeria’s renewable energy potentials and how it can be harnessed by the state and private investors to meet the country’s energy as well as how available sources of finance can be accessed by investors to develop her renewable energy sector are hereby examined. The research methodology employed secondary data and qualitative means of data analysis situated within the context of critical theory. The paper found out that the renewable energy potential of Nigeria is massive, with continued growth expected to trickle-in to complement the country’s problematic fossil fuels sector that is being reformed for optimal performance. The paper recommends, among others, creating the right enabling environment to attract investment in cleaner renewable sources, strengthening her comatose fossil fuel sector and grid infrastructure.