Countries all around the world are now required to establish effective plans that ensure energy security and safeguard the climate due to the negative effects that energy production and use have on global warming. Studies investigating solutions to lower energy demand and GHG emissions in Nigeria, nevertheless, are scarce and haven’t really paid attention to what’s technically possible there.
Despite the need to lessen carbon emissions across the nation and the continent, generating enough electricity to support corporate operations and ensure a continuing existence is a bigger worry for many Nigerian enterprises. The deployment of renewable energy is nevertheless required by the need to lower energy costs at a time when diesel prices are driving enterprises to their knees, despite the continent’s overall share of GHG (global greenhouse gas) emissions being modest at less than 4%.
As prices for a wide range of products and services rise, energy costs play a significant role in the decades-high inflation rates that are being seen. Diesel is viewed as a valuable fuel, particularly in Nigeria, where it is used extensively in industrial and residential electricity as well as transportation. Given that diesel has risen well above N800 mark, many companies have voiced concerns about the alternatives that are available and the impact that this will have on the price of goods and services, particularly at a time when inflation is on the rise. Not just for enterprises, but also for many people, a country with a weak electrical supply faces a catastrophic situation.
The adoption of renewable energy has recently been pushed by Stears Data and Sterling Bank Plc in new research on Nigeria’s electricity issue as a viable option to supplement residential and business supply. Despite the privatization of its power sector, Nigeria still has among the lowest electrification levels globally, with 43% of its population without access to grid electricity, indicating that “85 million Nigerians are not connected to – and cannot receive electricity from – the Nigerian transmission system,” according to the report “Powering Nigeria: How Solar Energy Can Become a Sustainable Electricity Alternative.”
According to the report’s comparative examination of electrification rates, Ghana has an electrification level of 84%, Kenya has a rate of 70%, South Africa has an electrification level of 85%, sub-Saharan Africa has a rate of 47%, India has a rating of 98%, Europe has a rate of 100%, the world has a rate of 90%, and Nigeria has a rate of 55%. Despite being higher than the sub-Saharan African region’s average electrification rate of 47%, it was highlighted that Nigeria’s electrification rate still trails well below that of its competitors on the continent and the worldwide average.
According to the research, Nigeria has the biggest electricity access gap in the world because its grid-supplied electricity is egregiously inadequate. The persistent electricity shortage has an impact on the nation’s economy and households on several levels, as well as businesses and the macroeconomy.
The research stated that, at the household level, “More than 40% of Nigerian families possess generators and pay the related expenditures. In the first place, the price of purchasing generators—estimated at $500 million between 2015 to 2019—is larger than the anticipated capital investment in Nigeria’s 2022 budget. Using these generators’ energy comes at a cost as well. There are many different sources and estimations, but the AfDB (African Development Bank) calculated that Nigerians do spend $14 billion a year refueling generators that run on gasoline or diesel.