Hill Giants Nigeria

The Nigerian energy supply crisis refers to the ongoing failure of the Nigerian power sector to provide adequate electricity supply to domestic households and industrial producers despite a rapidly growing economy, some of the world's largest deposits of coal, oil, and gas and the country's status as Africa's largest oil producer. Currently, only 40% of Nigeria's population is connected to the energy grid whilst power supply difficulties are experienced around 60% of the time.[1] At best, average daily power supply is estimated at four hours,[2] although several days can go by without any power at all. Neither power cuts nor restorations are announced, leading to calls for a load shedding schedule during the COVID-19 lockdowns to aid fair distribution and predictability.[3][4]

Power supply difficulties cripple the agricultural, industrial, and mining sectors[1][5] and impede Nigeria's ongoing economic development. The energy supply crisis is complex, stems from a variety of issues, and has been ongoing for decades. Most Nigerian businesses and households that can afford to do so run one or more diesel-fueled generators to supplement the intermittent supply.

Since 2005, Nigerian power reforms have focused on privatizing the generator and distribution assets and encouraging private investment in the power sector. The government continues to control transmission assets whilst making "modest progress" in creating a regulatory environment attractive to foreign investors.[6] Minor increases in average daily power supply have been reported.

Background
Until the power sector reforms of 2005, power supply and transmission was the sole responsibility of the Nigerian federal government.

As of 2012, Nigeria generated approximately 4,000 - 5,000 megawatts of power for a population of 150 million people as compared with Africa's second-largest economy, South Africa, which generated 40,000 megawatts of power for a population of 62 million.[7] An estimated 14 - 20 gigawatts of power is provided by private generators to make up for the shortfall.[8] Nigeria has a theoretical capacity of more than 10,000-megawatt generation capacity using existing infrastructure but has never reached close to that potential.

96% of industry energy consumption is produced off-grid using private generators.[8]

Issues affect all areas of the sector, from generation to transmission to distribution.

Currently, the only plan the government has in place to help solve the energy crisis is to expand the fossil fuel burning sector. Alternative forms of energy are not used probably because of availability of oil in Nigeria, as it has the world’s seventh largest oil reserves.

History of the Power Sector
1886 - First two power generators installed in the Colony of Lagos
1951 - Act of Parliament establishes the Electricity Corporation of Nigeria (ECN)
1962 - The Niger DamsAuthority (NDA) was also established for the development of hydroelectric power
1972 - Merger of ECN and NDA to create the National Electric Power Authority (NEPA)
2005 - Following reforms, the NEPA was renamed Power Holding Company of Nigeria (PHCN). The Electric Power Sector Reform (EPSR) Act was enacted allowing private investment in electricity generation, transmission, and distribution.
November 2005, the Nigerian Electricity Regulatory Commission (NERC) was inaugurated and charged with the responsibility of tariffs regulation and monitoring of the quality of services of the PHCN.[9]
February 1, 2015 - The Transitional Electricity Market (TEM) announced
Current Challenges
Power Generators
The most efficient location for new power plants in the Niger Delta region due to the easy access to the sources of energy needed to run the plants.

Transmission Network
Post-reforms the transmission network continues to be government-owned and operated and remains the weakest link in the power sector supply chain. Transmission lines are old and at the point of system collapse on any given day.[6] Even should more power be generated, the transmission network is unable to carry any additional power loading. Designed for a peak capacity of only 3,000 to 3,500MW per day breakdown of the lines is a daily occurrence. Lack of maintenance and security challenges in parts of the country only adds to the difficulties.

Current State of Energy Production
Currently, Nigeria uses four different types of energy: natural gas, oil, hydro, and coal[1] The energy sector is heavily dependent on petroleum as a method for electricity production which has slowed down the development of alternative forms of energy. Three out of the four above resources used for energy production in Nigeria are linked with increasing greenhouse gas emissions: coal, oil, and natural gas, with coal emitting the worst of the three.

Solution to the energy and environmental problem in Nigeria
To increase the energy production in the country, the Federal government has started investing in solar power. Nigeria is a tropical country with a large amount of insolation coming from the sun. She has involved solar companies in Nigeria[10]to help in the mass production of solar plants and the distribution of solar systems for households and businesses. The Rural electrification project embarked upon by the federal government is poised to supply solar systems to 5 million households. Which will be a great way of increasing the energy supply in the country.

See the table below for a summary of the environmental impacts of the sources of electricity.