Demand 02
Energy Access
Nigeria is extremely energy poor because of its high demand and lack of a well-established energy supply chain.
The Rural Electrification Agency (REA) estimated that nearly 90 million Nigerians did not have access to grid electricity in 2020,⁹ which is about 49% of Nigeria’s population, while millions of those connected to the grid have less than 12 hours of power per day. Nigeria has enormous renewable resources sufficient to cover all its energy needs. However, the lack of infrastructure and economic development has led it to be the country with the greatest energy deficit in 2021.
There is a need to decentralise and diversify the nation’s energy mix to meet present and future needs by investing in alternative sources of energy including solar, wind, hydropower and biomass with less environmental and climatic impacts. Studies show that Nigeria has tremendous solar power potential which when effectively harnessed¹⁰ can provide sufficient energy for the Nation.¹¹ Renewable energy has the potential to enhance the productivity of the vast economic sectors of the Nigerian economy and improve the social livelihoods of communities. Investment in alternative energy will also reduce Nigeria’s age-long dependence on natural gas and its attendant environmental issues.
Call To Action
Ensure youth inclusion in policy planning and decision-making processes, including consultation for the implementation of Nigeria's Energy Transition Plan.
Repurpose current fuel subsidies for investment in renewable energies and subsidise the cost of solar panels to ensure their affordability and accessibility to the masses.
Launch investment programs and schemes that aid capacity building and training for youths and women to increase
manpower in the renewable energy sector, support local entrepreneurs to build green businesses and solutions, and
scale off-grid energy access to communities, homes and businesses - especially in remote parts of the country.
Address the issue of overbilling/excess billing generated by estimated billing methods used by PHCN for households/customers who do not have access and cannot use pre-paid meters for complex reasons.
Initiate strategic transition of high-emission sectors such as electricity, transport, urban mobility, and other high-emitting industries while striving to improve research, innovation and resilience in the energy sector.
Collaborate with governments at all levels to build infrastructure that enables the technology transfer of clean energy and the adoption of new energy systems.
Promote the scale-up of locally incubated clean cooking solutions in grassroots communities to reduce risks of forests burning for charcoal exportation.
Remove high import duties, excess levies, and Value Added Tax (VAT) on renewable energy technologies to encourage the private sector to enhance energy access throughout the country.
Create a framework that enables phase out of oil and gas production, taking into account the complexity of Nigeria’s economy to devise pathways that ensure a stable, sustainable and credible renewable energy infrastructure will replace the current energy system.
Encourage the adoption of energy management systems that enables real-time monitoring of energy consumption to help identify energy-saving opportunities, track progress and promote energy-conscious behaviour among individuals and organisations.
Establish a centralised data management framework to track energy projects and assess power development.
References
[10] https://link.springer.com/article/10.1007/s10668-022-02308-4
[11] https://guardian.ng/business-services/industry/how-to-reduce-energy-deficit-boost-industrialisation/