Page 16 - Vol 28 Issue 29 2019

energy insight

Solar mini-grid in Nigeria
Why the outlook for fixing Nigeria’s

energy crisis isn’t good By Nnaemeka Vincent Emodi

igeria returned to democracy The biggest issue facing Nigeria remains I conclude from my analysis of Nigeria’s
in 1999. But it took another 16 that of energy poverty, which successive energy sector that the outcome of the
Nyears for power to change hands, administrations since 1999 have not 2019 presidential elections is likely to have
with the All Progressive Congress party resolved. little impact on Nigeria’s energy policies.
clinching the office of the presidency in This points to the need – as a matter of There are doubts about Buhari’s ability to
2015. Led by President Muhammadu urgency – for the present administration make significant progress, particularly in
Buhari, the new government had three to identify the shortcomings of current areas of accountability, alternative energy
priority areas: corruption, the economy policies. It must simultaneously develop and institutional rearrangement. This
and security. policy options that will improve energy means that energy poverty will remain
The power sector is at the heart of the efficiency. unresolved.
economy in Nigeria. Policy and interventions Although the incumbent president has
In its 2014 manifesto the party promised to One way the government hopes to been re-elected and may succeed in
expand electricity generation and achieve its promises is through the Power improving energy supply, overall energy
distribution to supply 40,000 megawatts Sector Recovery Programme. This was policies will be relatively unaffected. This
in four to eight years. It also said it would set to run from 2017 to 2021. It covers a suggests that current energy policies in
make power available from renewable series of policy actions and operational, Nigeria are not likely to change over the
energy sources, such as solar, hydro, wind governance and financial interventions. next four years.
and biomass, for domestic and industrial This, plus the fact that no steps have
use. The government has started the first been taken to unbundle or privatise the
phase of independent power supply to state-owned Nigerian National Petroleum
There has been some development, all federal universities in the country. It is
including the completion of two doing the same for about seven teaching Corporation, means that energy
hydroelectric power projects. The hospitals. The benefits of this effort to the companies in Nigeria might find it difficult
Geometric Power project has gas, coal and education and health sectors cannot be to get affordable fuel supplies. This could
solar power plants. And the transmission overstated. But progress has been slow in negatively affect their investments. They
network was expanded Yet, overall, the oil and gas sectors. Promises to speed will need to be ready for tough times
progress remained slow. up the Petroleum Industry Bill and ensure ahead.
As he took office for his second local content issues were fully addressed Buhari needs to make more judicious use
term, Buhari made new promises. This have not been met. The purpose of the of Nigeria’s petroleum revenue and to
time, the party’s manifesto said it would: bill was to improve transparency, attract consider the advantages of alternative
Generate, transmit and distribute from investors, and stimulate economic growth energy over fossil fuel use for power
current 5,000–6,000 MW to at least and government revenues. generation. More importantly, he should
20,000 MW of electricity within four The bill has not yet been signed into law. initiate energy policies that have a positive
years and increasing to 50,000 MW with impact on the lives of all Nigerians.
a view to achieving 24/7 uninterrupted There have also been plans to rehabilitate Finally, changing or developing energy
power supply within ten years, whilst four existing local refineries utilising policies alone, without the requisite
simultaneously ensuring development of funds from a project financing model. financial, fiscal, political, legislative
sustainable/renewable energy. This would ensure local production above and technological support, alongside a
90%, which largely matches domestic positive environment, may be ineffective.
The 2019 presidential election returned consumption. But the Nigerian National
Buhari to steer the country for the next Petroleum Corporation had an operating A comprehensive approach is needed
four years. The hope was that the victory loss of N82bn at the close of the 2017 that builds on the inputs from all energy
would ensure that he would be poised to financial year. The country also relies stakeholders in the country. (Courtesy of
contain and tackle the challenges of the heavily on imported fuel, which often The Conversation Africa)
country. leads to fuel scarcity. So the current
But the outlook for meeting the targets in energy policies for the oil and gas sector Nnaemeka
the energy sector isn’t good. Households are no more effective today than they Vincent Emodi
and businesses in Nigeria feel let down. were five years ago at meeting the energy is a Policy Analyst
For many Nigerians, power supply seems needs of Nigerians. at the Australian
much the same as ever. Some even claim What next Academy
that the situation has become worse. of Science

16 | AFRICAN POWER Mining & Oil Review Vol 28, Issue 29, 2019 Celebrating 10 years of excellence