Businesses need stable economy to plan long-term investments, says Royal Power CEO

Adewale Odugbesan, chief executive officer (CEO) of Royal Power and Energy Limited, says businesses need a stable economy to plan for long-term investments.

Speaking on Tuesday at a high-level media parley in Lagos, Odugbesan warned that poor macroeconomic conditions, exchange rate (FX) challenges, and workforce migration, could slow down solar adoption progress if not addressed.

He, however, commended the recent performance of the naira against the dollar, noting that the currency has shown signs of stability and improvement over the last few months.

This, the CEO said, is a positive step forward for the economy.

“Businesses need a stable, predictable economy to plan long-term investments. While the volatility of the naira and shifting economic policies have posed challenges, the recent stability and improvement in the currency’s value are encouraging signs,” the CEO said.

“Additionally, we must address the issue of talent migration, which is draining critical expertise from the sector.”

Despite currency volatility, the energy expert said the cost of solar energy has dropped significantly over the years, making it a viable alternative to traditional power sources.

He said the cost of running on solar is now cheaper than relying on diesel generators or electricity from distribution companies.

“In 2010, solar panels cost around $3 per watt; today, the prices have dropped significantly. This means that despite the devaluation of the naira, the affordability of solar energy has significantly improved, making it a viable alternative to traditional power sources,” Odugbesan said.

Odugbesan commended recent government policies aimed at promoting solar energy adoption.

The CEO cited incentives such as relatively low import duties on solar components — excluding batteries — as key measures supporting the sector.

A major regulatory change, he said, is the removal of the mandatory grid connection requirement for businesses generating over one megawatt of solar power.

“Previously, companies exceeding this threshold were required to feed power into the national grid, creating investment bottlenecks,” he said.

“With this policy change, businesses can now distribute power within their states independently, eliminating a significant barrier to investment and improving energy access across Nigeria.”

Odugbesan also spoke on the need for stronger public-private partnerships to bridge infrastructure gaps in the solar sector.

He reaffirmed Royal Power’s commitment to leveraging advanced technology to enhance power accessibility.