Nigeria’s offgrid market in focus as French Week opens today

The French Week, one of the biggest bilateral events in Nigeria begins today and the highlight of this year’s event will be on how businesses in the offgrid power sector can attract new investments and promote deeper adoption of renewable energy in the country.

A bilateral event put together to promote French and Nigerian brands, culture and relationships to the international business community and to create an atmosphere for networking and exchange, this year’s French Week commences from today till November 24.

“The highlight of this year’s French Week will be the economic summit which is aimed at bringing together key business and governmental figures from France and Nigeria to discuss key issues that affect the business climate in Nigeria and the focus for this year is on the Nigerian power and ease of doing business,” said Laurent Polonceaux, head of French Mission in Nigeria in a press briefing.

This year’s event according to Carole Boissier, chairperson French Week Committee, will seek to promote synergy between the business communities of both countries. It will also highlight the fate of the 14 solar PPAs signed in July last year which are yet to reach financial close.

“The economy is restarting now and the conditions are more favourable than they were in 2016 when the country was experiencing a recession, so there is possibility that more investments will come into the country especially in the offgrid market,” said Polonceaux

Polonceaux further said that the current situation is a question of will and economic and financial competence, “we are confident that the Nigerian business is getting better and will give French companies the opportunity to list on the stock market,” said Polonceaux.

Olivier Follin, country manager of Proparco AFD, an investment outfit, said the recession of last year along with foreign exchange challenges were some of the factors that made it impossible for the 14 solar power purchase agreements to reach completion.

“We have tried to finance solar farms in Katsina for instance in July 2016, 14 solar farms were initiated and we are still negotiating, we hope we can complete this as foreign exchange is improving and we hope other things will improve as well,” said Follin.

Follin said that the present situation with the Transmission Company of Nigeria, GenCos and DisCos make it difficult to get into main city so there is greater motivation towards offgrid investments.

On his part, Francis Widmer, economic councillor of the French Embassy in Lagos, said that a proof of the improving investment climate in Nigeria is the current move to have more French companies list on the Nigerian stock market.

“We have four French companies listed on the Nigerian stock exchange as you know, 2016 was year of recession and it was not the best time to list, things are getting better and more companies are considering listing,” said Widmer.

At this year’s French week, the organisers say it is looking to deepen over 4 billion euros worth of bilateral trade between the two countries.

“We are also looking to deepen this relationship besides crude oil which is the biggest trading commodity between both countries,” said Eric Jeanneau, vice chairman of the Franco-Nigerian Chamber of Commerce and Industry.

Moses Umoru, acting director general of the FNCCI said this year event will commence with a wine tasting ceremony (Beaujolais Nouveau), on November 17, followed by the economic summit on the 20th, an entrepreneurship summit on November 22 and a gala dinner on the 24th.

“This will be a celebration of culture and economic relationships between both countries, the best of France and the best of Nigeria,” said Ize Matebese, a board member of the FNCCI.

ISAAC ANYAOGU