Nigeria, one of Africa’s biggest economies, is currently facing serious power problems, even though it has huge energy resources. With a population of over 200 million people and rich oil and gas reserves, Nigeria has what it takes to build a strong and diverse energy sector. This sector can not only meet local electricity needs but also supply energy to other countries. But the reality on the ground shows that the country is still struggling to provide basic electricity to its citizens.
Right now, Nigeria is seeing more demand for natural gas. There are signs that renewable energy is growing slowly, and there is new interest in green fuels. These efforts, alongside ongoing power sector reforms, give hope that the country can fix some of its energy problems. However, many Nigerians still live without power. About 40 percent of the population, which is roughly 80 to 90 million people, do not have electricity in their homes. Many others get electricity only from time to time. Although Nigeria has installed about 13 gigawatts (GW) of electricity capacity, it is only able to generate around 5 GW for use.
This poor electricity supply is stopping Nigeria’s economy from growing and affecting the daily lives of its people. Even though there have been reforms in the power sector, the transmission and distribution systems are still weak. The national grid is not reliable. Because of this, many families and businesses use diesel generators. In rural areas, where people cannot access gas or electric stoves, many households still use firewood to cook. This puts pressure on forests and adds to the climate problems Nigeria is already facing.
Nigeria is also the largest oil producer in Africa and makes a lot of money from oil exports. Oil brings in most of the country’s foreign exchange earnings. Apart from oil, Nigeria has about 200 trillion cubic feet of natural gas, which could be used to solve the electricity problem. But the country does not have enough infrastructure to refine, store, and transport this gas for local use. As a result, even though Nigeria depends heavily on gas for electricity, the country still imports gas for power and cooking. Some power plants even shut down at times because of fuel shortages.
To solve this, the Nigerian government is supporting the building of new gas pipelines and putting money into improving the electricity transmission and distribution system. In the renewable energy space, hydro power is the most used renewable source in the country. Solar energy is also slowly becoming popular, especially through rooftop panels and small community mini-grids. In 2023, the federal government started a programme called Solar Power Naija. The goal is to give electricity to 5 million rural households through solar energy.
However, energy experts believe solar energy alone cannot meet Nigeria’s growing industrial needs. The country will need to keep using natural gas while increasing investments in renewable energy and improving the power grid. The road ahead will not be easy, but there are clear steps Nigeria can take to improve the situation.
To talk about these issues, a major energy event called Nigeria Energy 2022 was scheduled in Lagos from 20th to 22nd September. The event will bring together policymakers, investors, gas suppliers, solar developers, and international partners. They will discuss important questions, such as how to increase electricity access, grow renewable energy, use digital tools in the energy sector, and support a clean energy transition.
The Nigeria Energy 2022 event is expected to help set a clear plan for the country’s energy future. It aims to guide improvements in electricity supply, support the economy, and create job opportunities for Nigerians.
