8th September, 2024
By Oluwagbenga Oyebanji
Industrialization is the foundation of sustainable development and economic stability. Energy sustainability is finding balance between growing the economy and protecting the environment for upward mobility and quality standard of living. In the quest of Nigeria’s government meeting the boisterous demands of electricity/energy which includes crude oil exploration and drilling. Green house emission and climate change has been in the front-burner of the energy conversation.
Energy production has been accountable for greater amount of climate change promoting green house emissions mostly from fossil fuels. Crude oil is extracted from reservoirs on the onshore or offshore platforms and conveyed through pipelines or tanker ships to refineries where it is turned into beneficial products mainly fuels, gas and industrial chemicals.
Crude oil is responsible for the second highest contribution to CO2 emissions globally, majorly in the transport ecosystem where cars, trucks, ships, and aircrafts are driven by oil-based fuels burnt in internal combustion engines. The transport sector consumes 89% of crude-oil products, and vehicles consumes 70% of crude-oil usage in Nigeria which informs the supply shock that affects the economy when there is fuel scarcity and the consequence of the shock is always inflation. The removal of fuel subsidy in Nigeria is a perfect description of the effect of fuel to the Nigerian economy; it affected all the sectors of the economy.
The rapid transitioning from non-renewable energy to renewable energy is the future of building a strong and viable economy in Nigeria and the continent. The Nigerian Electricity Regulatory Commission (NERC) just disclosed that it’s adding 5,000 MW to the electricity generation grid through renewable energy by 2030. The action plan by the federal government through National Renewable Energy Action Plan (NREAP) to diversify Nigeria’s energy supply by increasing the provision of renewable energy to the national grid is a laudable policy. The NREAP action plan has a 30% target of renewable energy to Nigeria’s energy mix by 2030 with definite target for solar, wind, biomass and hydroelectric power. The transfer of regulatory capacity from NERC to some states would boost investments in energy supply of the nation. The decision is already bearing fruits with Lagos state government’s audacious ambition of generating 50% of its electricity generation from renewable energy sources by 2023.
Nigeria primary source of electricity is thermal and hydro-electricity while Morocco emerging economy electricity’s production in 2022 came from coal (37.25%), hydroelectricity (16.70%), natural gas (17.72%), fuel oil (7.03%), wind (13.48), and solar (7.82%). The share of Morocco’s renewable energy in renewable energy electricity capacity was 38% of the energy mix in 2022. The latest discovery of the Nigeria’s government into realization of shifting the energy focus towards renewable energy is commendable. The NREAP action plan would further encourage a distributed energy model for the rural and urban centers. The 30% target of renewable energy transition of electricity generation by 2030 would bring cleaner, sustainable and environmental friendly energy sources if the policy is thoroughly implemented.
The challenges witnessed in the power sector would be reduced with major emphasis on energy transition to renewable energy. The progress made by the installation of the utility-scale 10mw solar project to the national grid is the right step in the right direction. Many firms have entered the energy market by supplying solar systems to businesses and households. Demands for solar energy has increased especially for rural settlements and agribusiness enterprises that needs affordable electricity for storage purposes.
The recent business trip of PBAT to China facilitated the Nigerian Government to sign a Memorandum of Understanding with a renewable energy Chinese firm Mutual Commitment Company Limited (MCC) to establish the first renewable energy academy in Nigeria. The MOU was facilitated by Rural Electrification Agency (REA) an agency of the Federal Ministry of Power. Clean energy accounted for $1.6trillion to the Chinese economy in 2023, and China contributed more than 80% to the global solar cell exports. Renewable energy sources are the main driver of industrialization and economic advancement in China.
Morocco is among the top electrified countries in Africa, achieving 100% national electricity access rate for both rural and urban population. Nigeria could attain 100% electrification if renewable energy is a focus in the energy mix. 40% of Nigeria’s population lack access to electric energy. The $1trillion GDP by 2030 would be impossible if renewable energy is not given a topmost priority in the energy demands of Nigeria. Renewable energy such as solar panels, wind turbines, hydroelectric dams and biofuels must be given utmost attention if Nigeria hopes to be an industrialized economy in the 21st century. The resources are in abundance but the political leadership is the missing variable in the equation of Nigeria becoming a leader among the industrialized nations in the 21st century. PBAT must channel the government’s major investment into renewable energy for Nigeria to be an industrialized nation.
-Oluwagbenga Oyebanji is a Public Analyst, [email protected]
