Despite recent progress, sub-Saharan Africa remains the epicentre of global energy access challenges, with Nigeria playing a significant role. A recent study by the International Energy Agency (IEA) indicates that nearly 80% of the global population without Electricity lives in Nigeria and other countries in Africa. This data highlights a crucial truth. Despite global progress, the area still encounters substantial challenges in reaching universal energy accessibility. The “Country Data on Electricity Access” IEA report reveals a slight improvement compared to the previous year.
The global population lacking electricity has decreased from more than 760 million to under 750 million. However, sub-Saharan Africa continues to play a substantial role in this statistic, even with the overall advancements seen worldwide. It is important to highlight that the advancements achieved in the last twelve months have not reached the heights observed from 2015 to 2019, a period during which about 80 million gained access to electricity each year. Current figures fall significantly short of the requirements to achieve the goal of universal electricity accessibility by 2030.
Nigeria only generates 5,000 megawatts out of its 20,000 demands.
To accomplish this objective, the rate at which individuals lacking access are reduced must accelerate to ten times the existing speed. The IEA highlights that, although significant advancements have occurred in Asia and Latin America in the past ten years, sub-Saharan Africa continues to have the largest discrepancies in access. As Africa’s most substantial economy, Nigeria faces ongoing difficulties with its power supply. Currently, the nation can generate around 5,000 megawatts, while the actual demand surpasses 20,000 megawatts.
Major contributing factors include poor distribution systems, insufficient transmission facilities, and a critical lack of gas for energy production. Furthermore, more than half of Nigerian households do not have meters, making billing and Revenue collection challenging. The nation encounters a yearly shortfall in investments totalling $10 billion, hindering the industry’s potential for growth and advancement. This scenario mirrors the wider patterns noted by the IEA, indicating that progress in electricity accessibility is lagging compared to earlier years. A united approach involving global Investors and local authorities is crucial.
Significant progress has been made over the years.
While further enhancements are expected, potentially decreasing the count of those lacking access by 10 million by the close of 2024, the disparity is still considerable. Even with these obstacles, there are indications of improvement. In 2023, the number of electricity connections in sub-Saharan Africa surged, allowing more than 6.5 million people to gain access, representing a 60% rise from a low point in 2021. This growth was mainly fueled by nations such as Ghana, Nigeria, and Uganda, which experienced a revival in grid connections.
Nigeria has successfully increased its new grid connections twofold since the decline observed from 2020 to 2022, either matching or exceeding levels seen before the crisis. Independent energy systems are becoming increasingly important in the energy framework of the area. Off-grid solutions like solar home installations and mini-grid networks now supply power to 7% of the population in sub-Saharan Africa. These independent models are essential for serving isolated regions where conventional grid systems are impractical. Mini-grids, specifically, have seen significant growth, connecting approximately 27 million individuals throughout the region as of 2021. Nations such as Uganda and Nigeria are at the forefront of facilitating and executing mini-grid initiatives, indicating potential for additional growth.
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According to the IEA report, substantial financial investments are crucial to sustain and speed up progress. If proactive steps are not taken, about 645 million people worldwide will continue to be without electricity by the year 2030. However, the report highlights positive trends, including an increase in implementing new policies and inventive strategies that have enhanced prospects for various countries. Nonetheless, financial barriers remain, such as restricted availability of business financing, challenges in designating resources for smaller initiatives, and increasing levels of debt. These elements, alongside conflicting demands for global development assistance, create continuous hurdles in the pursuit of universal accessibility.