Renewables
Addressing Nigeria's energy challenges through gas and renewables
Nigeria's power sector faces significant hurdles, prompting calls for expanded gas utilisation, refinery upgrades and decentralized solar solutions.
Key points
- Over 100 million people in Nigeria lack reliable electricity access, costing the economy $28 billion annually.
- The country holds Africa's largest proven natural gas reserves at 215.19 trillion cubic feet.
- The Rural Electrification Agency has budgeted 170 billion Naira for decentralized renewable projects.
Nigeria continues to grapple with severe power shortages affecting more than 100 million residents, according to Blueprint Newspapers. Outages impose an estimated annual economic burden of $28 billion. The power sector struggles under financial strains caused by discrepancies between consumer tariffs and generation costs.
Gas resources and infrastructure
Despite holding 215.19 trillion cubic feet of proven natural gas reserves, the nation battles feedstock limitations at its major liquefaction facility on Bonny Island. Blueprint Newspapers reported that production targets aim for 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. Meanwhile, the nation's four state-owned refineries, possessing a combined capacity of 445,000 barrels per day, have historically underperformed and required frequent imports to meet domestic fuel demand.
Expanding renewable energy
To stabilize the grid, the country is increasingly turning to decentralized solar power. The Rural Electrification Agency has allocated 170 billion Naira to deploy over 500 electrification initiatives. This includes a 100 billion Naira public sector solarisation scheme aimed at equipping federal universities and teaching hospitals with hybrid mini-grids, according to reporting by Blueprint Newspapers.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
22.0% of electricity in Nigeria was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
