CHALLENGES FACING RENEWABLE ENERGY (RE) IN NIGERIA AND THE GOVERNMENT’S ROLE IN UNLOCKING PRIVATE INVESTMENT

ABSTRACT

Renewable energy is an important panacea for the environmental problems produced by fossil fuels. However, its deployment is critical in ensuring its advantages. The Government alone cannot completely implement such deployment. Therefore, private investment is required.

This paper investigates the role of the Government in facilitating private investments in renewable energy. Private investments can make major contributions to deploying and developing renewable energy. However, the key risks associated with private investments in renewable energy, like financial fraud, and regulatory risks, negatively impact private investors’ willingness to participate in Nigeria’s renewable energy. As such, renewable energy’s slow development rate makes it difficult for the Government to meet its renewable energy usage targets.

The Government must, ensure, recognise, and harness the potential that private investment can provide for renewable energy. The paper emphasises the vulnerabilities of the renewable energy sector and suggests that the Government develop initiatives to encourage private investment.