Envision a world where everyone, everywhere has access to ample, cheap, and clean energy. But today, over 770 million people worldwide still lack access to electricity, and Nigeria, Africa’s economic powerhouse, is home to a large part of them. Despite abundant natural resources and potential, Nigeria faces the difficult challenge of balancing the Energy Trilemma:
1. Energy Access, excluding renewable energy, means that all individuals get access to adequate electricity supply.
2. Accessibility – Ensuring that energy costs are friendly for the user and producer.
3. Sustainability – The shift to cleaner, renewable and sustainable energy-efficient systems.
This energy trilemma is key to solving for Nigeria and many other developing nations. As Nigeria’s population continues to rise above 200 million people, the economy advances fast while environmental problems loom large. Nigeria’s energy prospects offer important insights for others.
Energy Access: Closing Nigeria’s Current Access Divide
Nigeria continues to have limited energy access, with more than 85 million people: over 40 per cent of the population, still without electricity. In rural areas, people use kerosene lamps and diesel generators; these are expensive and dangerous to human health and the environment.
Why does this matter?
a. Lack of energy access impedes business growth and, therefore, slows down economic development.
b. Hospitals and clinics cannot run their operations as usual without an electricity power supply.
c. Rural students cannot study in the evening, which reduces their chances of studying.
Innovative Solutions:
a. Independent solar systems and mini-grid systems are now revolutionising rural communities. For instance, the Nigeria Electrification Project (NEP), funded by the World Bank is extending electricity to unreached communities.
b. Private entities such as Lumos and Arnergy are offering end-users contractual solar electricity, allowing families and businesses to meet their energy needs cheaply.
Application of these solutions at the national level in Nigeria is crucial to closing the gap and achieving universal access.
Energy Affordability: Bringing Electricity Access to Lives Without Incurring High Costs
Accessibility continues to be a major problem in the energy sector in Nigeria today. The first problem is access to electricity, and the second problem is how much it will cost. Many households live without access to affordable electricity; they use expensive sources such as diesel generators, which cost $14 billion collectively in Nigeria.
These challenges are compounded by the country’s ageing power infrastructure, resulting in power blackouts and leaving firms to use a large part of their revenues on diesel-generated power.
Path to Affordability:
a. Increasing the share of renewable energy sources will lead to cost reduction in the future.
b. Measures to promote third-party financing which are common in solar systems like the pay-as-you-go system assist households to avoid large initial costs.
c. Cost reduction through subsidies and Public Private Partnerships such as those being promoted by the Nigeria Rural Electrification Agency (REA).
As the country seeks to implement sustainable solutions affordability cannot be sacrificed in the process.
Energy Sustainability: Nigeria’s Green Transition
The energy mix of Nigeria has over the years been largely driven by fossil fuels, primarily natural gas and diesel. As much as these resources have been instrumental in the achievement of growth in the economy, they pollute the environment and increase emissions of carbon.
The increasing demand for sustainability across the globe can be described as both a threat and an opportunity for Nigeria. Given the fact that Nigeria is the largest oil producer in Africa, it must cut emissions while it continues to grow economically.
Opportunities in Renewables:
Nigeria has all the right conditions for clean energy requirements; the country has 5-7 hours of sunlight per day. Several in-country projects speak to the capacity Nigeria has to become a solar superpower. Some of these projects include:
a. The Solar Power Naija programme, which is designed to bring 5 million rural Nigerians into the solar fold as part of efforts to extend electricity to the hinterland, are the ones making these changes possible.
b. The new Energy Transition Plan of Nigeria which aims for net-zero emissions by 2060 shows the way forward using clean energy such as solar, hydropower and green hydrogen. This will put Nigeria at the frontline as a green economy, whilst also stimulating employment and foreign direct investment.
Nigeria’s Balancing Act: Learning from the Local for the Benefit of the Global
The energy trilemma is not unique to Nigeria, but its experience offers valuable lessons for other developing nations:
a. Innovation is Key: They point to interventions such as NEP as a way of illustrating how targeted strategies enhance access.
b. Policy Drives Change: The trilemma is very relevant to Nigeria and its government, as well as agencies such as the REA, which funds these projects and forms partnerships.
c. Collaboration Works: Cooperation with international organisations (World Bank, African Development Bank etc.) demonstrates how international cooperation fosters local development.
Therefore, with proper attention paid to the three pillars of access, affordability and sustainable development, Nigeria stands exemplarily to other countries that are facing similar challenges.
Conclusion: A Call to Action
This paper aims to discuss Nigeria as one of the most challenging and promising cases of energy transition. As the nation works to ensure universal access, affordable prices, and sustainable systems, it underscores a key truth: achieving the energy trilemma is not just a question of technology, partnerships and strategy, but a question of imagination.
The Nigerian governments, private sector, and citizens all need to join forces and drive the country’s transition to clean energy. With renewable energy solutions, communities, and organisations that encourage sustainable practises Nigeria can set Africa and the world on a path toward a sustainable future.
The question remains:
As people, managers, and entrepreneurs, how do we advance a sustainable energy transformation in Nigeria and in the broader global society?
The time to act is now. Nigeria’s success in the energy trilemma will not only light the path to economic growth but also help other countries find balance in the global energy system.