Proshare Limited, one of Nigeria’s leading investment consulting firms, has described the sustained investments by FCMB Group in renewable energy as vital to the current drive by the Federal Government to achieve net zero carbon emissions in the country by year 2060.
In a Note issued on Monday, the firm’s analysts noted that the group had made substantial contributions to the decarbonization and expansion of clean energy in the country, having identified such investments as essential given its location in a region that is heavily dependent on fossil fuels.
Although the experts believe that the group still has much to do in its drive toward green energy, even when it has significantly reduced its carbon footprint and increased its financial support for companies that are committed to developing clean energy sources.
The analysts, in the Note, rated the group’s subsidiary, First City Monument Bank, as having moved 150 (73%) of its pan-Nigeria branch network from grid/diesel generators to solar power and by so doing, far ahead of its peers in the race where renewable energy takes center stage.
The experts stated that this also applied to the bank’s strides in financing renewable energy resources to support global decarbonization efforts, adding that the lender has worked with development finance institutions to provide targeted financing to improve Nigeria’s energy access through mini-grids and energy-efficient projects.
They clarified: “Astonishingly, it has executed credit enhancement agreements worth over N21 billion to increase energy supply, with about N1.7 billion going to businesses in the renewable energy sector, improving cost-effectiveness and access to clean energy, and supporting clean off-grid energy solutions to close the supply gap in Nigeria as the demand for residential and commercial energy rises exponentially.
“This group’s endeavour represents a drastic departure from the nation’s main energy source, fossil fuels, and though it is modest, it significantly contributes to the growth of the renewable energy industry and raises the possibility of achieving net zero emissions by 2060”, the firm’s experts added.
