Powering Nigeria’s Future: A Holistic Review of Renewable Energy Generation

Nigeria’s growing population and increasing energy demand necessitate the exploration of sustainable energy solutions. Renewable energy sources like solar, wind, hydroelectric, biomass, and geothermal power offer significant advantages over traditional fossil fuels. Nigeria’s abundant sunlight, strong winds, and vast water resources make it well-suited for renewable energy development. Solar power is abundant and accessible, with initiatives like the Solar Power Naija program deploying solar home systems and mini-grids to rural communities. Wind energy, particularly in the northern region, can diversify Nigeria’s energy mix and reduce greenhouse gas emissions. Hydroelectric power, particularly in rural areas, can enhance energy access, stimulate economic development, and support irrigation and water supply systems. However, challenges such as financing constraints, inadequate infrastructure, policy and regulatory barriers, and technical limitations hinder widespread adoption. With the right policies, investments, and partnerships, renewable energy generation can catalyze inclusive development, enhance energy security, and mitigate climate change impacts.

Nigeria stands at the precipice of an energy revolution, poised to embrace renewable energy as a cornerstone of its sustainable development agenda. In the pursuit of a greener future, the nation has set its sights on leveraging its abundant renewable resources to drive economic growth, ensure energy security, and combat climate change. At the forefront of this movement is Olasubomi Asuni, a leading advocate for renewable energy in Nigeria, offering illuminating insights into the country’s renewable energy landscape and the path ahead. 

Nigeria’s energy crisis has been a longstanding issue, with the country’s energy sector facing significant challenges. The Nigerian Electricity Regulatory Commission was established in 2005, and the Power Holding Company of Nigeria (PHCN) was formed in 2013. However, the privatization of all electricity generation and distribution companies in 2013 left Nigeria with 23 grid-connected generating plants. Despite the privatization, power supply remains below par, with 46% of the population still lacking access to electricity. Nigeria’s average energy output of 4,000MW falls short of its estimated demand of 8000MW, making it one of the most underpowered countries in the world. Small-scale diesel and petrol generators serve nearly half of the country’s energy demand, with MSMEs heavily relying on them. This has led to a $14 billion annual cost for self-generation, posing risks to personal health and the environment. The removal of petroleum subsidies in 2023 spiked fuel prices, causing businesses to cease operations. Despite having the largest economy in sub-Saharan Africa, deficits in the power sector hinder Nigeria’s economic growth.

Nigeria’s renewable energy generation, including hydroelectric power, solar, and wind, contributes 15% to 20% of the country’s total electricity generation capacity. However, this figure varies due to seasonal fluctuations, energy policy changes, and infrastructure development. Factors influencing this include hydroelectric capacity, solar irradiation, wind speed, grid integration, policy, investment, and technological advancements. Addressing these factors can help Nigeria transition to a more sustainable and diversified energy mix.

The Nigerian government’s Renewable Energy Master Plan aims to increase renewable electricity supply to 23% by 2025 and 36% by 2030. The plan aims for 500MW solar PV installed capacity by 2025, with 427GW of potential. Nigeria has a total exploitable hydropower potential of over 40,120MW, but only half of the six fully operational stations are operational. The country also has vast onshore wind power potential, with a wind farm in Katsina State and a biomass gasifier plant in Ebonyi State. Enhanced rural electrification using mini-grids and off-grid technology can save $4.4 billion annually and increase productivity for Micro, Small and Medium Enterprises (MSMEs).

Nigeria has implemented several policies and initiatives over the past 30 years to promote renewable energy generation and transition to a sustainable energy mix. Key policies include the National Energy Policy, National Electric Power Policy, Renewable Energy Master Plan, and National Renewable Energy and Energy Efficiency Policy. The Nigerian Electricity Regulatory Commission supports renewable energy development and investment in infrastructure. However, challenges remain in policy implementation, financing, infrastructure development, and institutional capacity. Renewable energy can enhance energy security, improve access to electricity, stimulate local economies, reduce carbon footprint, and contribute to sustainable water resource management.

Nigeria’s energy mix diversification policies are not being implemented due to high costs of importing components and equipment for renewable energy products. The market has not developed enough for tax credits for producers. Renewable energy not only reduces greenhouse gas emissions but also improves air quality, advancing the country’s Paris Agreement commitment. To combat inadequate electricity and improve living standards, Nigeria must embrace renewable energy as a sustainable solution. By leveraging renewable resources, Nigeria can achieve its net-zero emissions target and unlock socio-economic and environmental benefits. 

Renewable energy can significantly boost Nigeria’s future and economic prosperity by harnessing its abundant natural resources and embracing innovative technologies. With the right policies, investments, and partnerships, Nigeria can accelerate the transition to a cleaner, more sustainable energy future.