How reliant is Nigeria’s national electricity grid on fossil fuel?
By Adewunmi Adedayo
“The clear and present danger of climate change means we cannot burn our way to prosperity. We already rely too heavily on fossil fuels and we need to find a new, sustainable path to the future we want. We need a clean industrial revolution.”
Former UN secretary-general, Ban Ki Moon, eloquently stressed these words back in 2011, during his address on the east coast of South Africa. Now, more than a decade later, the echoes of his words are relevant once again as a country in the western region of Africa, Nigeria, faces a crucial decision regarding the sustainability of its energy sources.
Nigeria’s energy environment is indeed at a critical crossroad amid a symphony of progress and prosperity. Despite their abundance, fossil fuels have long held the reins of electricity generation, intertwining the nation’s development with a complicated web of hurdles. Nigeria should be at the crossroads of a global energy change as the globe moves toward greener pastures.
The nation’s geographical patchwork reflects its energy diversity, ranging from the hot Sahelian savannahs to the verdant Niger Delta. The siren calls of fossil fuels, years after years, have tempted politicians with massive quantities of oil, coal, and natural gas. Nigeria’s electrical infrastructure has frequently conformed to coal-fired power plants and gas turbines, cementing its reliance on these traditional sources. However, as the world deals with the imminent threat of climate change, Nigeria must also change gears.
Aside from the environmental repercussions, Nigeria’s economic prowess has been hampered by its reliance on fossil fuels. Global oil price variations have regularly put the country’s budgetary stability to the test, showing the vulnerability of an energy system dependent on hydrocarbons. Nigeria must grasp the reins of energy independence and chart a new road toward renewable alternatives in order to realise its full potential.
However, the sun, a steadfast companion of the Nigerian sky, is ready to embrace the country with its abundant energy. Solar electricity, an infinite and clean source, promises a future of self-sufficiency and resilience. Wind, hydro, and geothermal energy join the choir, creating a harmonious symphony of renewables that has the potential to transform Nigeria’s energy destiny.
As the world watches Nigeria, the country’s decisions today will influence the legacy it leaves for future generations. At this critical juncture, entrepreneurs, scientists, and policymakers compete to rekindle the spark of progress.
Harnessing the full potential of Nigeria’s diverse energy resources is paramount to achieving sustainable economic growth. Yet, despite being blessed with abundant gas, oil, solar, and hydro sources, and possessing the capability to generate 12,522MW, the country struggles to distribute a mere 4000 MW on average.
The energy sector of the country is facing a wide range of challenges relating to electricity regulatory uncertainty, transmission system restrictions, policy enforcement and energy sector planning shortfalls that have reduced the sector’s chances of attaining a commercial viability.
Electricity generation in Nigeria
Nigeria’s energy generation is primarily reliant on fossil fuels. Statista reveals that as the throbbing heart of the African economy, the nation thrives on oil, natural gas, and coal, which collectively generated an impressive 22 terawatt hours of electricity in 2020.
The International Energy Agency’s (IEA) World Energy Outlook has revealed in their data that 80% of Nigeria’s energy generation is from gas, while the rest comes from oil, with Nigeria being the largest consumer of oil-powered generators in Africa. Energy supply for Natural gas has experienced a remarkable increase from 2010 to 2018, while oil production has experienced a slight increase after a sharp fall in 1995
According to Energypedia, as of September 2022, there were 23 grid-connected generating plants in use by the Nigerian Electricity Supply Industry with an installed capacity of 11,165.4. Hydroelectric plants contribute 2062MW, gas-fired provides 11,972MW, while wind, solar, fuel and due account for the remaining 2,350MW, according to USAID.
Despite the country’s remarkable energy production capabilities, Nigeria is caught in an unsettling dilemma. It is currently one of the countries where most citizens are underpowered in the world, with a total consumption that is 80% less than expected consumption based on income levels and population.
This has made a majority of Nigerians dependent on alternative sources of energy, mostly in the form of fossil fuels which leaves a carbon footprint upon the country. The small-scale petrol and diesel generators have about 14GW capacity and almost half of the electricity used is self-generated.
Energypedia also says there are 11 electricity distribution companies catering for the whole country, with a transmission system of 5,523.8 km of 330 kV lines and about 24 000 km of 33kv sub-transmission lines.
Impact of fossil fuel on the People and the Community
As the most populous black nation, Nigeria’s energy demand continues to increase, driving the need for innovative solutions to meet its ever-growing thirst for power. The affluence the nation’s renewable resources have, fortunately, offers the country hope, holding the key to unveiling a greener and cleaner energy environment.The International Renewable Energy Agency has pointed out that if these renewable resources are well utilised, the country will be able to meet up with about 60% of its energy demand by 2050.
Presently, the dependence of Nigeria on fossil fuels has negatively affected the environment. This accounts for more than 65% of the country’s greenhouse gas emissions. The oil discovery in 1956 marked a vital moment for Nigeria’s energy segment, yet it also triggered a rise in carbon dioxide (CO2) emissions, contributing to global climate challenges.
One disturbing effect of Nigeria’s energy practices is the continual gas flaring, which releases 12.7 billion metric tonnes of gas into the atmosphere each year. Economic losses from gas flaring were estimated by PwC at a staggering 233 billion naira in 2018, but the environmental toll is even higher, at an annualised N28.8 billion, according to NEEDs (National Environmental, Economic, and Development Study).
Gas flaring releases harmful pollutants into the atmosphere, posing severe health risks to communities, such as difficulty in breathing, among others. The pollutants can alter the climate and weather pattern of an area over some time.
Nigeria’s energy policies have far-reaching effects, not just on the atmosphere. The United Nations Environment Programme reported in 2017 that most of the water bodies in a community in the western Ogoniland, Nisisioken Ogale were contaminated with benzene at a level 900 times more than the guidelines specified by the World Health Organisation (WHO). The report also revealed that a thorough clean-up would take about 25 to 30 years.
Reports have shown that while the country is one of the top producers of natural gas and crude oil in Africa, more than 140 million Nigerians have no access to energy such as advanced energy services like electricity, fuels and clean cooking structures. This shows that the country is suffering from chronic energy poverty.
A report published by the International Energy Agency highlights that the World Energy Outlook placed access to electricity in Nigeria at 61.6% in 2019. It reveals that almost 77 million people live without access to electricity.
Rural and urban residents have both been affected by the energy crisis. It is more critical in the rural area because occupants do not have access to the national grid and urban dwellers also suffer from unstable and insufficient power supply. Most days, it is only able to transmit about 4,000MW, which is not enough for a country with more than 195 million people.
The incessant power outages have forced citizens to switch to self-energy generation with several fossil fuel-backed generators to enjoy a power supply. The over-reliance on depleting fossil fuel sources has increasingly affected the environment,creating a vicious cycle of energy insecurity and environmental degradation.
According to the African Development Bank’s President, Akinwunmi Adesina, Nigerians spend almost 14 billion USD every year on backup generation, which releases harmful gases into the atmosphere, further straining the environment and the well-being of communities.
The Race for Sustainable Energy: The government’s role on the energy transition plan
Averagely, only 45% of Nigerians are connected to the energy grid, with a concentration on the urban areas. Energy sector reforms have seen the need to extend this accessibility to rural areas. There is no doubt that the present energy crisis will continue to happen if the government does not change the energy sources and adopt new sustainable sources.
The advent of Sustainable Development goals (SDGs) have laid emphasis on the need for a safe and sound environment for individuals. Energy transition is near as countries are gradually diverting to renewable energy without a carbon footprint. The introduction of science and technology have also made it possible to create and use energy in an eco-friendly and sustainable manner. Experts have established that renewable energy sources guarantee a lifeline in this transition, providing a means to power our lives without leaving a carbon footprint.
The Nigerian government has plans to ensure universal access to energy by 2030 in line with SDG 7 and also increase the access of Nigerians to affordable and clean energy. The country is positioned to develop a sustainable energy system backed by energy-efficient and renewable resources to realise affordable access to energy.
Ademola Agunbanjo, the Vice president of Oando Clean Energy, said that Africa as a continent must embrace a green energy transition while leveraging the opportunity to close the existing energy gap.
Nigeria is a signatory to the Paris Agreement adopted at the United Nations Climate Change Conference in Paris. This has necessitated Nigeria to adopt a policy to reduce its greenhouse gas emissions. The country has also recognised that transitioning to low-emission development is non-negotiable for sustainable economic growth.
The energy transition simply means moving away from the use of fossil fuel sources of energy to renewable energy-based production. The plan seeks to eliminate the issue of energy poverty and climate change.
At COP26 held in Glasgow, former President Muhammadu Buhari announced that the country will reduce its carbon emissions gradually and reach net zero by 2060. The president thereafter signed into law a climate bill that includes a five-year emission budget, to achieve net-zero conservatory gas emissions.
The government also launched the Renewable Energy Master Plan in 2011, to increase the share of renewable energy to 36% by 2030. The government is also investing to increase electricity generation through hydrostatic power plants with a total capacity of more than 6,024 MW.
The former Chief of Staff, Professor Ibrahim Gambari, said the State House will be at the forefront of the global switch to renewable energy resources. He said, “The world is focused on reducing the effect of climate change. What we are looking for is the energy solution that comes with environmental sustainability.”
The Chairman of the Renewable Energy and Energy Efficiency Association, Dr Talba Imamudeen, stressed the need to have a plan that sets out the timeline and targets of the Energy Transition Plan. According to him, this would help the plan to be under strict monitoring, thus making it achievable
According to the World Economic Forum, public offices like the Renewable Energy Association of Nigeria and the Rural Electrification Agency have provided training to build capacity and also provide technical assistance. As the country aims to transform its energy sector, there is a need to build technical capacity for solar developers and entrepreneurs.
Another initiative is that the government has embarked on the off-grid Electrification Strategy. The strategy aims to provide uninterrupted electricity supply for government hospitals, 10,000 mini-grids and 5 million solar systems for SMEs by 2023.
‘Alternative energy sources are more energy-friendly’- Solar Energy Expert
Recently, the Federal Government of Nigeria took a significant step by announcing the removal of fuel subsidies, a policy aimed at reducing the cost of petrol, diesel, and LPG for the public.
While this decision has sparked intense economic debates, its potential for driving sustainable development often goes unnoticed. By eliminating fuel subsidies, Nigeria opens up avenues to embrace cleaner energy sources, promote renewable energy initiatives, and combat climate change
Climate Action Africa, a social enterprise in Africa’s climate action ecosystem, suggests that the released funds from subsidy removal can be directed towards supporting the development of renewable energy projects such as solar, wind, and hydroelectric power. According to Climate Action Africa, investing in clean energy infrastructure not only reduces greenhouse gas emissions but also fosters long-term development and enhances energy security.
As fuel prices increase, Climate Action Africa urged individuals and businesses to adopt energy-efficient practices, resulting in lower energy use and waste. The social enterprise further stated that promoting the use of energy-efficient appliances, sustainable building designs, and environmentally friendly transportation systems will help Nigeria significantly reduce its carbon footprint. For instance, reducing the amount of waste disposed of by individuals and using alternative transport systems to reduce emissions.
More Nigerians are moving towards the use of solar sources of electricity due to the removal of fuel subsidy policy made by the government. According to Mr Tunde Adeagbo, a Solar Technical Officer, the number of people that have turned to using solar as a source of power has increased tremendously since the fuel subsidy removal.
He highlighted some advantages of using solar as a source of electricity. Mr Adeagbo stated that it has minimal/low environmental impact, there is reduced electricity bills, low maintenance cost and low pollution, which limits its effect on the environment and the people.
Private-sector Intervention
Unlocking the necessary funds for this transformative endeavour requires a formidable partnership between the government and the private sector. Lance Abudu, Component Lead of Standalone Solar Home Systems said, “Despite an overall increase in global investment in technologies related to the energy transition, Sub-Saharan Africa received less than 1.5% between 2000 and 2020. Unlocking the necessary capital will require intensive collaboration between government and the private sector, greatly increasing the likelihood of Nigeria achieving a just transition.”
In a private sector-concentrated meeting that was organised by the Global Energy Alliance for People and Planet in collaboration with SEforALL, stakeholders in the private sector discussed the opportunities and challenges in Nigeria’s Energy Transition Plan. In response to the discussion, a private-sector working team was formed to support energy in Nigeria.
Some stakeholders such as the Dangote Group are taking steps to be part of the move to a more sustainable generation of energy. In a training exercise organised by the company, an Executive in the company, Haruna Adinoyi, stressed the need to sustain our environment. Haruna pointed out some of the practical actions that Dangote had already taken which includes the production of limestone cement and alternative fuel— cutting down carbon emissions in the environment
Dangote Cement in its sustainability report for 2022 said the company prioritises enforcement of environmental sustainability. As such, it used waste as fuel for the pyro process, reducing the company’s consumption of fossil fuels.
Taking complementary actions to realise the goals of Nigeria’s ETP could be effective. These complementary plans include the modernisation of biomass utilisation, enhancing energy efficiency in SMEs and focusing on the removal of natural carbon.
Conclusion
Apart from reaping ecological benefits, Nigeria can also stimulate economic growth by creating jobs for its populace. Notably, the elimination of fuel subsidies gives a once-in-a-lifetime chance to transfer funding to sustainable energy initiatives.
The clock is ticking for Nigeria’s energy industry, and the time for action is now. The journey to a cleaner, more sustainable environment would be long and difficult, but the potential rewards would be worth it. All parties must collaborate to diversify energy sources, reduce reliance on fossil fuels, and, ultimately, make power available to all.
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