Erratic power supply and frequent grid failures has become a typical experience tormenting several households and businesses in Nigeria. Although several measures were implemented in this regard, the country is still far lacking behind in generating adequate and reliable power supplies. A report tagged Renewable Energy Roadmap Nigeria estimates that Nigeria will need to invest around $34.5 billion to guarantee reliable electricity access by 2030. The Nigeria Electricity System Operator reports that the country’s present supply is roughly 4,500MW.
Thus, the country will need to invest nearly $4.93 billion annually for the next seven years to achieve the aim of delivering 20,000MW to over 200 million people. According to the data presented, even though the country has the ability to generate 13,000MW of power, the actual supply is only around 4,500MW currently. It indicated that the issue was exacerbated by factors such as a lack of gas, machine breakdowns, seasonal water shortages, and limited grid capacity, all of which have significantly impacted the operational efficiency of these power plants.
Majority of Nigeria’s electricity comes from natural gas facilities.
As a result, there have been regular power outages, and that as a response, many people have taken steps notably shifting to alternative energy. There are two main types of power distribution networks in Nigeria: centralized (connected to the grid) and decentralized (not connected to the grid). The generation of power in the centralized system occurs on a massive scale at centralized facilities like huge hydro and thermal plants. Renewable energy technologies (including solar home systems, streetlights, and mini-grids) and captive diesel and petrol generator sets provide a few kilowatts to megawatts of capacity for the decentralized power power system.
About 13 gigawatts (GW) worth of grid-connected systems are now operational. However, the available peak generation on the grid today varies but often sits around 4.5 GW. The majority of Nigeria’s electricity comes from natural gas facilities (86%), followed by huge hydropower plants (14%). A severe hit to these dominating variables has resulted in widespread power outages that persist for hours daily. Many homes and businesses have also turned to diesel and petrol generator sets for backup power as a result of the situation.
84% of urban homes employ alternative power supply.
The entire capacity of self-generation based on fossil fuels is a matter of a certain ambiguity, at least in terms of installed capacity. Although the exact figure is unknown, it is estimated that as of 2015, the country had access to somewhere between 15 and 30.5 GW of diesel and petrol-based generation capacity (Solar Plaza, 2017). Nowadays, about 84% of urban homes employ alternative power supply systems like fossil diesel/gasoline generators and/or solar-based systems, while about 86% of firms in Nigeria own or share a generator.
Considering the fact that it has imported millions of captive generators, Nigeria is the largest importer of generators in Africa and among the top importers worldwide. The residential and industrial sectors of Nigeria’s economy suffer from the country’s unreliable power supply infrastructure and the high cost of isolated generation. Households and SMEs pay two to three times as much on kerosene, diesel and petrol as they do on grid power due to the high costs of captive generation.
Self-generating power supply makes goods more expensive.
Government data suggests that the expense to self generating electricity supply makes Nigerian goods about a third more expensive than imports. The use of captive diesel and petrol generators can be reduced if Nigeria improves its electricity service in terms of both access and reliability for its population. Collectively, these steps will bolster the nation’s Energy Transmission Plan (ETP), a pathway toward achieving a net-zero emissions, which is aimed at fruition by the year 2060.
Related Link
NERC: Website
Nigeria needs $34bn for reliable power supply. – Nearly $4.93bn is needed annually for the next seven years to deliver 20,000MW. – Express your point of view.
Nigeria should invest more on power supply to make it a reliable one for foreign and Nigerian investors that are willing to invest in Nigeria to come in. They should also collaborate with investors into power supply for the speed up of reliable supply of energy for big and small businesses.
Providing a reliable power supply is essential for Nigeria’s growth and development. The country needs a significant investment in upgrading infrastructure and building new power plants. Therefore, Nigeria should create opportunities to attract more investment in the power sector to meet its energy demands.
Nigeria needs $34bn for reliable power supply. They issue of electricity can only be settled if we have a good government because we have been hearing this for a long time.
Our power supply line has been nothing to write home about. This money will be sent to revitalize the power supply and still it might not still yield positive result.
The provision of a dependable electricity supply is crucial for Nigeria’s development and progress. The nation has to make a large investment in new power plants and infrastructural development. To meet its energy needs, Nigeria should therefore develop chances to draw greater investment into the power sector
Nigeria needs $34 billion for a steady supply of power. The government should invest in the supply of power with the partner of private sector to help so we can be enjoy goof and reliable electricity
Poor power supply and power outages has really been suffering us for years and we don’t even know when we can enjoy a reliable one not even with all this audio investments.
For Nigeria to thrive and advance, a steady electrical source must be provided. The country must invest heavily in the construction of power plants that will supply us the power we needed to have a reliable electricity
The epileptic power supply in the country is not encouraging at all. Many SMEs self-generate their electricity which invariably affect cost of production. Since the inception of the 4th republic several administration have invested massively into power sector and never yielded any fruit. Now their are proposing investing $34.5 billion again. There is the need to probe the power sector. We Nigerians need answers to this recurring need to always invest in Power without result.
What I can perceive in the power sector is the high level of corruption that is deeply seated in the Organisation. Administrations before this present ones have invested massively in this sector without any positive result. If electric power supply is steady in the country, many SMEs will be doing well which will have a positive on our wedding.