Michael Olugbode in Abuja

A Non-Governmental Organisation (NGO), Vectar Energy, has said carbon credits could be the solution to the funding of the nation’s renewable energy plan, 

Nigeria is in urgent need of about $40 billion to meet its energy gap, this Vector Energy advised the federal government to tap into carbon credits to fund renewable energy as a solution to the perennial power problem in the country.

Nigeria officially launched its Carbon Market Activation Plan (CMAP) in February 2024 and a supporting policy, the Nigeria Carbon Market Activation Policy (NCMAP), in September 2024, which outlines the strategy to unlock an estimated $2.5 billion market by 2030. 

The plan is supported by an inter-governmental committee inaugurated by Vice President Kashim Shettima and aims to accelerate green growth, standardise its carbon market ecosystem, and facilitate international trading under the Paris Agreement

The Founder of Vectar Energy, Deborah Fadeyi, told journalists in Abuja at the maiden EcoWise multi-stakeholder forum under the theme: ‘Trust, Scale, Impact: Unlocking climate finance through carbon credits for Solar in Nigeria’, that there is an essential need for sustainable solutions through converting solar data into real capital via accelerating climate finance and clean energy in Nigeria .

She said, “access to electricity had become a burden, particularly with not less than 8.6 million Nigerians unable to access electricity, amidst power supply.

Fadeyi noted that: “When we go to COP events, we pretty much ask for aid to be able to build climate resilience, which is one key thing for us as a country.

“Having to build climate resilience through access to electricity, not just for day-to-day, but for sustainable industrialisation, then we realise that aids don’t work.

“The conversation of aids doesn’t work. So how about we trade something? This is where carbon credits come in. If we strive to deploy low-carbon renewable projects, is there a way for us to get concessions from that?

“To be able to finance more renewable energy projects, more solar projects, there is a mechanism for that, it is called the Clean Development Mechanisms.”

She explained further, “such mechanisms could bolster Nigeria’s ability to convert solar data or any sort of low-carbon or renewable green energy data into carbon credits. 

 “Also that carbon credit is sold to corporate buyers such as Amazon, Microsoft, to be able to showcase their net zero confidence as the world progresses to net zero by 2050.”

Speaking at the occasion, the Ambassador of Israel to Nigeria, Michael Freeman, represented by Thelma Agada, the B-Technology Project Manager, commended Vectar Energy to be the result of the partnership between Nigeria and Israel through the establishment of the Innovate Hub.

The envoy said Nigeria has everything it takes to lead Africa’s clean energy transformation through vast sunlight, abundant natural resources and most importantly, a young, talented, determined population.

 “The challenge and the opportunity lies in connecting innovation to implementation and ideas to investment. This forum is exactly the kind of platform that makes such connections possible.

“This brings together government, private sector, academia and development partners, the four pillars that most work hand-in-hand if we can and will achieve the lasting impact.”

Freeman said, “Let me also assure you that Israel stands ready to partner with you on this journey, whether it is through technology transfer, capacity building or joint ventures in renewable energy infrastructure.”

On her part, the Vice President, Renewable Energy Association of Nigeria, Damilola Asaleye, commended the launch of the EcoWise platform by Vectar Energy, to be innovative platform that is needed currently in Nigeria and Africa at large.

She described EcoWise as a platform that is locally built by a Nigerian to bolster sustainable solutions in the renewable energy sector and to enable Africans to have access to climate finance.

She said, “We can have access to environmental finance and then, we can turn all the data from our solar installations right now in Nigeria, we can turn this into revenue through the climate credits.

“I am glad that a private sector organisation is actually taking the bull by the horn to implement this climate finance platform right now, whereby we can convert climate, environmental data into revenue. 

“We do not have to wait for the government for everything to be done. We private sector owners too need to step up to the game and ensure that we have data credibility,” Asaleye said. 

Highpoint of the event was EcoWise technical paper launch, virtual presentations on: Nigeria’s solar ambition, empowering people for climate resilient energy access and financing the solar transition. 

 

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