By Chuks Oyema-Aziken
Hope for full power supply to Nigerians may still be a mirage for the foreseeable future excerpt something drastic is done.
Presently, the country with a population of about 200 million have to do with a miserable 4500 MW of installed capacity of approximately 13,000 MW.
The inability to provide energy is a source of concern as it affects livelihoods.
A 2023 report by the Association of Small Business Owners of Nigeria stated that 25 per cent of manufacturing businesses have ceased operations in 2023 alone.
Haladu Sambo, a road side electrician in Kurudu Abuja is finding it difficult running his business.
Haladu with 2 wives and 9 children is contemplating abandoning the business as power supply is not frequently available to attend to his clients needs.
According to him “I am thinking of another business to survive my family. Most times my customers will bring their appliances and because their is no light, there is nothing we can do.
“Look at that television, it has been here for 2 weeks. I dont want to use generator for it. My customers are getting fed up, and off course it is not my fault.
“Sometimes light will come, in 5 minutes it is gone. The danger is that you may damage someone appliance. Government should please come to our aid,” he pleaded.
In similar vein, Martha Obi, a hair stylist in Karu Abuja, is lamenting how epileptic power supply have impacted in her business.
“We know the power have never been good, but it is getting worse now. In the past one month, i lost one of my dryers to power surge. How much am i making to buy another one?
“If you have to use generator, how much is fuel? Don’t forget we have hair stylists all over. We are just managing ourselves. If the government can improve on light, it will help our business. If i went to school, i would have abandoned this trade now,” she added.
Mr Okonkwo Ndudi, has a small scale soap manufacturing industry in Orozo, along Nyanya – Karshi road, Abuja. At peak he had 12 direct employees working for him, now has cut his staff strength to 6, blaming it on the cost of doing business, especially power.
“How can i cope spending almost six hundred thousand naira on diesel in a month? It is not sustainable at all. I had to send some of my staff away. Business is bad these days.
Mr. Okonkwo lamented that in the neighborhood, businesses are scaling down or outrightly closing down due to low profit margin.
The Nigerian government say much is being done in the power sector, but on ground nothing is showing.
In 2024, the Minister of Power, Adebayo Adelabu, assured Nigerians of stable and sustainable power supply in all parts of the country.
During a visit to the Calabar power plant of Niger Delta Power Holding Company, Adelabu said that the Federal Government is consolidating on reforming the power sector aimed at ensuring stability of power across the nation.
According to the minister“There has been an increase in energy demands and the government is working relentlessly with commitment to meet the demands.”
He enthused,“The power sector is very critical to both the government and national economy. This is why the President has asked me to visit all the power plants in the country and assess their functionality.
Inadequate electricity supply, despite abundant resources, impacting businesses and daily life, with frequent blackouts and reliance on generators has made several big manufacturing firms relocate to nearby countries like Ghana.
Despite being Africa’s largest oil producer and possessing significant coal and gas reserves, Nigeria struggles to provide reliable electricity to its population.
The World Bank say Nigeria has the world’s largest absolute electricity access deficit, with 45 per cent of the population (90 million) lacking access to the electricity grid. Large disparities exist in access to electricity between urban areas (84 per cent) and rural ones (26 per cent).
Generator, inverters and other sources is to the rescue as only a fraction of Nigeria’s population has access to a regular power supply. The national grid is prone to collapses, leading to widespread blackouts and disruptions.
Nigeria’s power infrastructure, including transmission lines and substations, is aging and prone to frequent failures while vandalism of gas pipelines and power infrastructure, as well as theft of power equipment, further contribute to the crisis.
Weak and aging infrastructure makes the country only able to transmit about 15,000 megawatts (MW) of electricity.
Much was expected of the power sector privatization of 2013, which transferred ownership of generation and distribution companies to private investors with the aim of improving efficiency, attracting investment, and enhancing electricity supply.
The privatization aimed to address inefficiencies, attract private investment, and improve the overall electricity supply in Nigeria.
However many are of the opinion that the privatisation process has failed to impact positively making the Nigerian Senate considering legislative measures to reverse the policy.
The failure of the privatisation is re-echoed by President Bola Tinubu who described the process as a failure.
Speaking in Abuja at the 2023 NESI Market Participants and Stakeholders Roundtable, NMPSR, President Tinubu said after 10 years of privatisation about 90 million Nigerians were still without power supply
He described as shameful the current generation, transmission and distribution level of just over 4,000 Megawatts.
Represented by the Special Adviser, Energy and Infrastructure, Office of the Vice President, Mr Sodiq Wanka, President Tinubu noted that the investments expected from the private sector never came.
According to him,“the key objectives of the privatisation effort were to improve the efficiency of the power sector, unlock private sector investments and unleash the potential of the nation through an energized economy.
“10 years on, I believe it is fair to say that the objectives of sector privatisation have by and large, not been met.
“Over 90 million Nigerians lack access to electricity. The national grid only serves about 15% of the country’s demand. This has left households and factories to rely on expensive self-generation, which supplies a staggering 40% of the country’s demand.
“What is worse, the total amount of electricity that can be wheeled through the national grid has remained relatively flat in the last 10 years.
“The grid capacity has increased from just over 3000Mw to typically just over 4,000Mw today. Versus a 40,000Mw target by 2020 that the Federal Government had set pre-privatisation.”
An energy expert who choose to be anonymous described the privatisation process as a failure, saying that the right people who ought to have had those concessions of buying those utilities are not the ones right there now.
“And then, of course, those who took over do not appear to have all the capacity and even the finances. And if you look at currently the profile of debt in that sector from those who buy from the Nigerian gas company to Embed, to distribution company and Genco, it’s running into trillions. So the approach, I think, in terms of the privatisation was a little bit faulty.”
In moving forward, experts and some Nigerians have suggested renewable energy as solutions to the crisis.
Climate Change specialist, Dr. Micheal David Tergunwa says the old way must give way
“As for the energy crisis, I think that we have just simply refused to change our system and approach to getting things done properly. It is the old system of transmission.
It is the same. The system is old. It cannot take more than we have.
“And that’s why for some of us, we continue to advocate for renewable energy as the best option to solve this crisis, at least at the community level and in other places. The quick adoption of renewable energy should be key. What you have with the national grid can be focused or channelled towards the industries, as the case may be.
“And the good thing is that the energy, electricity is now in the concurrent list. So it means that both states are no longer just a federal government.
Both states and federal government can. So states have the opportunity to also invest. Then you know that the energy was privatised.
The Renewable Energy Roadmap for Nigeria was developed in collaboration with the Energy Commission of Nigeria and analyses the additional renewable energy deployment potential up to the year 2050, with an additional 2030 focus to aid shorter-term policy development. The study encompasses all key sectors of the Nigerian energy system to provide additional context for energy policy discussions on how increased ambition in terms of renewable energy – beyond current government policy and targets – can be realised.
According to a recent IRENA release, renewable energy can help Nigeria not only meet its energy needs but also power sustainable economic growth and create jobs while achieving global climate and sustainable development objectives.
Adopting renewable energy sources like solar, biomass, and hydro presents a compelling solution to address energy poverty and promote sustainable development in Nigeria. Renewable energy will be more affordable and accessible to last-mile communities where grid extension is expensive. Renewable energy sources, such as solar PV and mini-grids, can generate electricity for hospitals, schools, companies, farm operations, transportation, and powering home appliances, among others.
Women often require energy for productive activities like sewing, processing agricultural products, and running small businesses. Renewable solutions like solar-powered lanterns and microgrids can address these specific needs, empowering women and contributing to their economic independence. The adoption of clean cooking technologies serves as a suitable alternative to save their health and environmental hazards.
Renewable energy sources like solar, wind, and hydropower can significantly tackle climate change by reducing reliance on fossil fuels, cutting greenhouse gas emissions, and promoting sustainable energy solutions.
Fossil fuels, like coal, oil, and gas, are major contributors to greenhouse gas emissions, which trap heat in the atmosphere and cause climate change.
Experts say by transitioning to renewable energy sources, Nigeria can drastically reduce its carbon footprint and mitigate the effects of climate change.
Renewable energy technologies, such as solar and wind power, produce little to no greenhouse gases during operation.
Investing in renewable energy sources diversifies the energy mix, reduces dependence on fossil fuels, and enhances energy security.
Renewable energy can support adaptation and mitigation strategies against climate change by providing clean and sustainable energy solutions.
Afforestation and other sustainable land management practices, combined with renewable energy, can help to reduce carbon dioxide emissions and enhance climate resilience.
Nigeria has abundant sunshine, making it an ideal location for solar energy development. Solar power can be used for electricity generation, water heating, and other applications.
Nigeria also has potential for wind energy development, particularly in coastal and inland areas. Wind turbines can generate electricity and contribute to the energy mix.
Nigeria has several rivers and lakes that can be harnessed for hydropower generation. Hydropower is a reliable and clean energy source, but it must be managed sustainably to avoid negative environmental impacts.
Nigeria can also harness biomass resources like agricultural waste and wood for energy production.
The Nigerian government has launched various projects to harness renewable energy, both for grid-connected and off-grid applications.
The National Energy Transition Plan, with targets to generate 30,000 MW of electricity from renewable energy sources and achieve carbon neutrality by 2060
The Rural Electrification Agency plays a key role in implementing solar mini-grids and standalone solar systems in rural communities.
Solar Power Naija:
This initiative aims to provide 5 million new connections to 25 million individuals in off-grid communities.
National Renewable Energy and Energy Efficiency Policy:
The Nigerian government has developed this policy with the accompanying Vision 30:30:30 which aims at achieving 30,000MW of electricity by the year 2030 with renewable energy contributing 30 per cent of the energy
Experts urge the government to continue to invest in renewable energy infrastructure, promote policies that support renewable energy development, and create a conducive environment for private sector investment.
To also cut down carbon footprint in Nigeria, the Clean Cookstoves Project is being promoted to help Nigerian women adopt healthy and environmentally-friendly cooking practices in the next few years.
The cookstoves will reduce the use of traditional firewood during cooking to over 90 percent.
It is estimated that over 180 million Nigerians lack access to clean-cooking fuels and technologies, according to the National Clean Cooking Policy.
The use of this cooking energy impacts negatively on public health, and women and results in climate change challenges
While Sambo, Martha and Okonkwo are excited about the options provided by renewable energy sources, they lament that the initial cost of acquiring them may be beyond the small scale businesses.
Despite the initial hiccups associated with renewable energy sources, Dr Magnus C. Onuoha, President of the Sustainable Energy Practitioners Association of Nigeria (SEPAN) and Executive Director of the Asteven Renewable Energy Academy, is
optimistic about the growth of business opportunities as long as the tools necessary to drive renewable energy development and improve energy efficiency are put in place.
“These tools require important rule changes and coordinated actions among several ministries, departments and agencies (MDAs) and must be backed by law. If the renewable energy and energy efficient policy (REEEP) is passed as law, it will boost access to energy services and ensure the sustainable growth of clean energy contribution to Nigeria’s energy mix, by so doing ameliorate the electricity challenges in Nigeria by attracting investors to the sector.”
To make it more affordable and deepen reach, the Renewable Energy Association of Nigeria (REAN) and Access Bank are looking at ways of intervening with the launching of Sustainable Finance Accelerator Program. It was designed to support corporates, MSMEs, and nano businesses focused on climate mitigation, adaptation, health care, and other social projects.
Speaking on the initiative at a REAN Annual General meeting, Gregory Jobome, Executive Director, Risk Management, Access Bank, said
the Bank recognize that energy is not only the backbone of economic development but a fundamental need that touches every aspect of life.
“Our commitment to renewable energy initiatives stems from the belief that affordable and sustainable energy is essential for a brighter and more inclusive future for Nigerians.
“Today, we stand at a crossroads where renewable energy is not just an aspiration but a necessity. Access Bank is proud to work with REAN and other industry players to support projects that can transform Nigeria’s energy landscape. We know that financing sustainable solutions requires more than just funding.
“It requires vision, partnerships, and a commitment to removing the barriers that have restricted access to affordable energy. Through collaborative efforts and innovative financing solutions, we can create a framework that attracts investments, fosters local manufacturing, and incentivizes clean energy projects.
“We also must impact our planet positively. We got very early exposure in a global context, working with the likes of the IFC, FMO, DG, World Bank and other global players. That early interaction meant we were able to make the business case for operating in this manner, and that’s why we have set up a sustainability unit since 2008.
“Now, we are at the cusp of further transformation for Nigeria. The world is transforming, in terms of the net zero journey and Sustainable Development Goals (SDGs). Access Bank has been preparing. We are leading that chart to ensure that more of our colleagues and players participate in this journey,”Jobome concluded.
