Winifred Owunna’s book, “Empowering Nigeria’s Energy Revolution,” advocates prioritising rural electrification through affordable and sustainable energy solutions. To achieve this, new government organisations should be created and existing ones restructured to implement and monitor the program effectively. The book is set to launch on December 3, 2024.
Owunna emphasises the need for clear targets for renewable energy in Nigeria’s energy mix. Setting these targets will help transition the country to cleaner, more sustainable energy sources. By incorporating these goals into regulations, policymakers can demonstrate a strong commitment to reducing dependence on fossil fuels and harnessing Nigeria’s abundant renewable resources.
The Nigerian government plays a crucial role in the energy sector. In addition to policymaking and regulation, it must participate in the energy markets. As a catalyst for change, the government can drive the energy transition process.
Recognising the vital role of power in economic activity, the Nigerian government has sought to privatise the power sector. This initiative aims to address structural, institutional, and policy issues.
The Electric Power Sector Reform Act (EPSRA), now the Electricity Act of 2023, was introduced to regulate and promote the development of an efficient and environmentally friendly power supply system. The Nigerian Electricity Regulatory Commission (NERC) is the primary regulatory body responsible for licensing and overseeing the power market, including generation, transmission, distribution, and trading.
The Electricity Act 2023 directs NERC to restructure Nigeria’s Electricity Supply Industry (NESI) and regulate its participants to ensure efficiency and reliability in power services at reasonable prices.
A favourable regulatory framework is necessary to support off-grid systems. Off-grid projects will struggle if hindered by long approval processes, excessive administrative requirements, and high taxes.
The Rural Electrification Agency (REA) should expand the electricity supply in rural and underserved areas where traditional utilities fall short. This can be done through public-private partnerships; small-scale independent power projects (IPPs) electrifying villages using renewable energy. This will create jobs and attract investment in rural areas. The REA also should develop a national geospatial database of Nigeria’s power infrastructure and create a framework for carbon finance.