NESG Holds Workshop on Sustainable Green Economy

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Posted Mon, Sep 13, 2021 6:37 AM

NESG Holds Workshop on Sustainable Green Economy

The Nigerian Economic Summit Group (NESG) in collaboration with the UK Government, Adam Smith International and the Climate finance Accelerator (CFA) on Tuesday, the 31st of August, 2021 held a workshop on Climate Finance Acceleration in Nigeria with the theme “Climate Finance Accelerator in Nigeria: Roadmap to Sustainable Green Economy.”

While delivering the welcome remarks, Mr. Guy Harrison, Economic Counsellor, British Deputy High Commission Lagos said that the Climate Finance Accelerator (CFA) is a four-year technical assistance programme funded by the UK’s Department for Business, Energy & Industrial Strategy (BEIS). He stated that the CFA wants to play a role in mobilising private finance and helps provide practical ways for government to finance and develop their countries. Mr Harrison reiterated that they continue to provide technical and capacity building support for organisations and that the workshop aims to identify ways through which projects can be matched with finance. “The cfa will act as convener, facilitator and help the policy environment to make climate finance flow evenly, by ensuring that the support provided matches up with the needs of the country,” Mr Harrison said.

Project director Adam Smith International, Mr Nick Haslam said that the CFA is interested in bridging the connectivity gap in the project management industry and the intention is to enable and facilitate finance in a way that suits project developers.

Mr. Olumide Lala, director Climate Finance Activities, Climate Transition Limited and Lead Adviser, CFA Nigeria team- Climate finance and Capital Markets said that there are certain criteria a project must meet before it has access to Climate Finance and that this occurs in the project identification stage. He revealed some of the key things’ financiers look out for in the project identification stage include project feasibility, sustainability and if the project can deliver required service or impact.  “It is possible to refinance debt when the project is more stable. Participants in CFA include angel investors, financing from DFID and more international type grants and banking facilities from commercial banks. Banks are keen to get into certain sectors. And local development finance institutions such as BOI are able to provide low cost and long-term financing, “Mr Lala stated.

Executive Director, Finance and Corporate services, Development Bank of Nigeria (DBN) Mrs. Ijeoma Ozulumba, said that over N400 billion Naira finance has been made available by the bank and the DBN provides guarantees to enable banks increase their appetite to lend. She stated that the core value of DBN is sustainability and they try to enable SMEs to put forward adaptation measures to cope with the impact of climate change. 

 

Mr. Eluma Obibiaku, VP power, African Finance Corporation revealed that AFC is an infrastructure bank which provides a range of infrastructure financing all across Africa. He stated that some of the barriers experienced by the bank includes identifying risks, allocating risks and directly mitigating against possible risks. He revealed that the Nigerian Bulk Electricity Trading Company (NBET) is the primary off-taker of electricity in Nigeria, but as a result of a number of challenges in the electricity value chain, cannot provide the needed assurance for payments which affects the bankability of individual projects.

 

Executive director, Technical Services, Rural Electrification Agency,Mr. Barka Sajou, said that there are issues around tax waivers that limit ability to de-risk project pipelines. He stated that the energy space has accumulated deficits as a result of low-level public financing but the CFA provides an opportunity to revamp the sector by leveraging on private sector finance. CEO, Nigeria Climate Innovation Center (NCIC), Mr. Bankole Oloruntoba, on his part said that the NCIC is leveraging on solar or renewable energy and continues to look for ways to build innovation, improve SMEs access to finance as a way of opening up more major markets for the SMEs to play in.

In the second panel session, Ms. Safiya Aliyu, general manager Sosai Renewable Energies said that they work with women to ensure the technology gets to the core people who need them and that a number of cultural limitations means that they had to adjust their strategy in order to have a seamless working relationship. On her part, CEO and founder of Creeds Energy Hannah Kabir, said that research has shown that micro enterprises spend about one thousand Naira daily on fuel for generators but with the introduction of their solar project, such enterprises now spend about 700 naira per day with a weekly repayment of between 2 to 3 thousand naira.

Mr. Shaninomi Eribo, CEO GreenSquareMetre said that the challenge faced in the green construction industry is convincing developers to adopt green building and financiers to provide funding for such projects. He revealed that there are 17 million housing deficits and with a minimum of 20 people to complete a house, the infrastructure industry offers immense employment opportunities and that financial organizations need to provide funding for green buildings that are water and energy saving.  

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