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Nigeria, highest generator importer in Africa

Nigeria, highest generator importer in Africa
Photo by Dima Solomin- Ask Nigeria

Households and businesses resort to self-power generation due to power shortage.

The International Renewable Energy Agency (IRENA) have announced that Nigeria is the highest premium motor spirit (PMS) and diesel generator importer in Africa. The agency revealed this in a new report that was developed in collaboration with the Energy Commission of Nigeria (ECN) and titled “Renewable Energy Roadmap: Nigeria.” This report revealed that natural gas power stations dominate 86 percent of Nigeria’s power grid generation while large hydropower plants take 14 percent. With this setup, however, unavailability of gas, machine breakdowns, seasonal water shortages and limited grid capacities have severely restricted the operational performance of these power plants.

In turn, this has affected power supply to the nation. Because of these power shortages, many households and businesses have resorted to self-power generation by using diesel and gasoline generator sets as a backup. According to IRENA, 84 percent of urban households use backup power supply systems such as fossil diesel or gasoline generators. Also, 86 percent of the companies in Nigeria own or share a generator. Also, the report highlights the fact that small and medium-sized enterprises (SMEs) and households spend between two and three times more on kerosene, diesel and petrol than they do on electricity from the national grid.

Country’s power sector needs financing to achieve constant power supply.

As the country struggles with access to power supply, stakeholders in the sector insist that alongside other challenges, lack of financing is a major issue that needs to be tackled to power the country for its over 200 million people. The report noted that the Nigerian power sector will require substantially more investments to achieve a constant power supply. “In terms of improving electricity access, around $34.5 billion in total investment will be required to provide electricity access to all households by 2030,” the report says.

The Transmission Company of Nigeria (TCN) suggests that the rehabilitation and expansion of the grid will require an annual investment of $1 billion for the next ten years, with a total of $10 billion. In total, about $45 billion will be needed to properly finance the power sector in Nigeria to be able to supply constant power supply to the populace. IRENA’s position in the report is that since there is no proper financing for the sector, the people have suffered from lack of constant power supply. To mitigate this issue, they buy electricity generators as backup.

Nigeria will gain much from pivoting to renewable energy.

According to IRENA, the low rate of power infrastructure and capacity in Nigeria, provides a context for a paradigm shift towards renewable energy. The agency says that Nigeria has much to gain from pivoting towards domestic renewable energy sources in place of domestic fossil fuels. The agency further revealed in the report that global fossil fuel employment may decrease by 80 percent in a 2° C scenario that is compliant with the Paris Agreement while renewable-based employment could increase by five times.

IRENA urges the government to nurture local development of abundant renewable energy resources. This would potentially spur local innovative renewable energy champions in such a situation. In turn, this would enable the creation of local jobs and spin-off industries. According to the roadmap contained in the report, natural gas, other renewables and hydropower constitute the remainder of Nigeria’s primary energy requirement. These are mostly used in the power sector. “The low penetration of variable renewables such as wind and solar shows the opportunity that lies in integrating them in the power sector given the substantial cost reductions of the technologies in recent years and the enormous natural resource that Nigeria has, especially for solar power,” the report states.

Some power projects are currently being carried out in Nigeria.

A few of the power projects being executed in Nigeria are also highlighted in the report. The World Bank is financing a $468 million International Development Association credit for the Nigerian Electricity Transmission Access Project to support the development of Nigeria’s transmission system. Also, the African Development Bank (AfDB) is working with the country on a $410 million transmission project and has pledged to invest an additional $200 million through the Rural Electrification Agency (REA) to expand electricity access in the country. Finally, there is the Presidential Power Initiative with Germany’s Siemens AG for a three-phase electrification project, which is aimed at increasing Nigeria’s power generation to 25,000 megawatts (MW). This amounts to N1.15 trillion, around US $3.8 billion as of 2020.


Related Link

Energypedia: Website

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Admin
1
10 days ago

Nigeria, highest generator importer in AfricaHouseholds and businesses resort to self-power generation due to power shortage. – Express your point of view.

Member
8
9 days ago

We can’t continue to run generators and pollute our environment with toxic emitted from the waste coming from it. Nigerian government claim to have invested in the power sector with no results. It is well o

Abusi
Member
8
9 days ago

We are always importing generator because there is lack of power supply in this country. If we can tackle our light issue in this country, we will be able to reduce the importation of generator.

Member
9
9 days ago

This fact has been proven over time because we refuse our power sectors to work because of some powers that be gaining from all this generator been imported in order to.make money so they left our power sector to rot.

Member
8
9 days ago

The nation’s electricity grid has been impacted as a result. As a result of periodic blackouts, many homes and businesses have installed diesel and gasoline generator sets for emergency power.

Member
8
9 days ago

Compared to their consumption of energy from the grid, small and medium-sized businesses and homes spend two to three times as much on kerosene, diesel, and gasoline, according to the survey.

Member
8
9 days ago

The government to encourage the growth of substantial local renewable energy resources, which may in turn inspire the emergence of local leaders in renewable technology innovation.

Member
8
9 days ago

Stakeholders in the industry argue that, among other obstacles, a lack of funding is a fundamental problem that needs to be addressed as the country attempts to increase its power supply.

Member
8
9 days ago

This has been increasingly evident over time as we have consistently chosen to ignore the needs of our populace in favor of the profits of a select few in positions of power, who have imported thousands upon thousands of generators and left our electricity infrastructure to rot as a result.

Member
8
9 days ago

If Nigeria were to replace its domestic fossil fuels with renewable energy sources, the country would stand to gain a significant amount of ground.

Member
8
9 days ago

Because Nigeria has such a low rate of electricity infrastructure and capacity, it presents a backdrop for a paradigm shift toward renewable energy.

Member
8
9 days ago

Stakeholders in the industry argue that in addition to other difficulties, a lack of funding is a significant problem that needs to be addressed in order to power the nation for its more than 200 million residents.

Member
8
9 days ago

Its a shame a whole giant of Africa is the highest importer of generator…when is not as of we do not have govt. power sector needs financing to achieve constant power supply. Other necessary provisions should be made available for the power sector.

Member
8
9 days ago

We cannot keep using generators, which produce harmful byproducts, without stopping to consider the environmental impact of this decision. The government of Nigeria claims to have poured funds into the country’s electrical grid, but says it has seen no improvements.

Member
8
9 days ago

If Nigeria were to switch from using fossil fuels produced domestically to using renewable energy sources, the country stands to gain a considerable amount of ground in this competition.

Member
8
9 days ago

People are importing generator because of shortage of electricity if the electricity is good and balance people will not be engage in getting generator we need to improve our electricity supply to sustain the country

Member
8
9 days ago

Why won’t Nigeria be the highest user of electricity generator which is used to power on most of their electrical appliances when our Government couldn’t successfully stabilizer electricity in the country after heavy investment.

Member
8
9 days ago

Because of a paucity of power supply in this nation, we are constantly importing generators. We will be able to decrease the importation of generators if we can solve the nation’s lighting problem.

Member
9
9 days ago

Nigeria, highest generator importer in Africa. What a very big shame on the thief and corrupt Nigeria leaders who has refuse to fix our electricity

Member
8
8 days ago

As a result, the country’s electrical grid has been disrupted. Many houses and businesses have installed diesel and gasoline generator sets for emergency power as a result of the frequent blackouts.

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