Top Nigerian Electric Vehicle promoter , Daniel Mbamala has warned that Nigeria may find itself in a distressful economic crisis in the near future if the Federal Government fails to support local players in the renewable energy sector.
Sequel to the recently concluded COP28 conference on climate change held in Dubai where it was agreed by nearly 200 countries that all nations should transition from fossil fuels to renewable energy sources to avert the worst effects of climate change, Daniel urged the Nigerian government to create intervention grants to players in the sector for the industry to thrive.
The MD/CEO of Unique Marvel Nigeria Ltd and Regional Partner, Electric Motor Vehicle Company (EMVC) who attended the conference alongside the company’s founder Prince Mustapha Mona Audu, posited that oil which is Nigerians mainstay may soon become an unattractive commodity globally , urging Nigerians to change their Mentality by investing and patronizing renewable energy products.
Speaking to journalists in Abuja on his return on Sunday, Daniel also asked the Federal Government to liaise with the National and State Assemblies to pass the National renewable energy law which will enable local investors to have a sense of direction.
He advocated “II will encourage the Government to as a matter of urgency liaise with the National Assembly to pass the National renewable energy law which will embody all the comprehensive programmes and most of the agreements reached at COP28.
“It is important that the Government develops this law , this law guides,protects and regulates people who are industry players in this sector. So many countries have gone beyond this stage but from where we are as a country and taking cognisance of the fact that we are a developing country it is considerably understandable that we have to start from somewhere.
Despite the challenges, Daniel however applauded the FG’s delegation for their level of participation at the climate change global gathering, according to him the Nation has the natural resources needed to prosper in the sector if the right policies and laws were put in place.
He said; “The Nigerian Government being part of the conference means that the first step to take is for them to pass a comprehensive National renewable energy law which will embody every component for this sector to thrive. The law should be passed and signed at both the National and State Assembly levels.
“It will give Nigerians and players in this industry a sense of direction. It is important for the Government to create a national intervention fund to be able to implement these programmes and encourage players who are in this sector. Most people who are players in this sector are really struggling to remain in the business. I’m talking about people who are into solar energy, electric vehicles, recycling and all fields that relate to the climate change initiative.
“It is important for the Government to provide incentives, financial grants in order to encourage people who are in this sector. Many of them have a very good sense of direction but they can’t make any significant progress because they have no support from the Government that is why the country is lagging behind in this regard.
The cost effectiveness of Electric vehicles were also explained by Daniel who insisted that though Fossil powered vehicles appeared to be cheaper when initially purchased but Electric vehicles remained the cheapest and easiest to maintain.
He explained that with removal of the fuel subsidy, rising cost of motor spare parts and lubricants it is wiser to patronize Electric / Solar powered vehicles which cost nothing to maintain other than to recharge and use. Daniel blamed the poor power generation in the country as the reason most Nigerians think it’s cheaper to purchase fossil fuel vehicles.
He called for increased public awareness on Electric vehicles;
“Electric vehicles are cheaper and easier to use and maintain than vehicles that use fossil fuel. For example if you look at the world bank statement on the supposed cost of vehicles in Nigeria, you will understand that if the Federal Government removed subsidies totally.
“As at today Petroleum will be close to 800 naira , when you say you want to be buying 20 liters of Petrol at the cost of 800 naira daily to go about your daily job or activity, you will realize that you’ll be spending close to 16 thousand naira when you check how much you’ll be consuming in a month. Imagine spending 16 000 daily to calculate it in a Month and one year. In reality it is cheaper to use and maintain EVs.
“Taking into consideration buying oil, brake oil, Steering power oil spare parts and all that . To get a new EV might cost 12,16 million or 20 million but you can buy a car for 5 million naira which is cheaper but on along run if you calculate how much you’ll spend on that car for 2-3 years you’ll see that you have spent more than the amount you would have used fo purchase an EV which is vehicle that you’ll just charge and drive. There are practical realities but Nigerians are used to power outages and since we don’t have electricity they can’t think in that direction.
On the gains of the conference for the country, Daniel raised optimism that the agreements reached by the Federal Government and the series of engagements will be beneficial for the country. According to him the Government is doing their best to improve power supply in the country , he urged Nigerians to keep faith with the Government.
On the side of the indigenous players Daniel stated that the conference provided them with the opportunity to interact and network with Global players in which they shared ideas on latest developments in the renewable energy sector.
“The Nigerian government was able to understand how far some countries have progressed in renewable energy and this will be a standing ground for them to know the stage which the world is at, and it will enable them to know where to start from.
“It’s not just a Nigerian thing, there are so many countries there who are also making an effort , some have gone far in this regard. But Nigeria is just starting. We are one of the countries who are very reluctant to embrace this global change, but with the level of participants the Nigerian Government was able to meet people who really made them understand how important it is for them to embrace renewable energy.
The EV advocate also mentioned that oil investors may soon begin divest into the renewable energy sector following their participation in the conference.
He said “most of these global players in the oil and gas sector , we all participated and there are so many big global brands who have presence in Nigeria and they attended the conference, they got the message and they are well informed about the future changes so it’s not about Nigeria or Africa, it’s about the saving the world.
“They are also making efforts to diversify towards the direction. It’s just a matter of time for everyone to queue in , I saw big oil and gas companies and they all participated.”
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