Get Guardian on GoogleThe Consumer Advocacy and Empowerment Foundation (CADEF) has unveiled an upgraded digital platform to help Nigerians overcome barriers to renewable energy adoption, amid concerns over high installation costs, limited access to financing and inadequate consumer awareness.
The platform, Renew Energy Naija, is designed to provide households and businesses with information and tools to assess their energy needs, explore renewable energy options and identify service providers.
The initiative was unveiled at a consumer-focused energy summit where stakeholders highlighted the need to make alternative electricity solutions more affordable, accessible and reliable.
Speaking at the event, CADEF Executive Director, Chiso Ndukwe-Okafor, said Nigeria’s energy crisis was characterised not only by inadequate electricity supply but also by the inability of many households and businesses to afford available energy options.
She said the situation had forced consumers to cut down on electricity consumption despite their unmet energy needs.
“Many countries experience energy poverty, where electricity is available but too expensive for people to afford. Nigeria, however, suffers from both problems. We have an energy access problem because we do not have sufficient electricity, whether from the grid or alternative sources. We also experience energy poverty because we can’t even afford what is given to us or what we would like to get,” she said.
A consumer survey conducted by the foundation showed that 45 per cent of respondents relied on generators as backup power sources, despite most earning below N100,000 monthly.
The survey also indicated that 30 per cent had inadequate access to energy, while 21 per cent sometimes reduced their electricity consumption and 18 per cent always cut back on usage. Another five per cent said they could never afford the energy they needed.
Ndukwe-Okafor said the findings demonstrated that electricity challenges in the country had become an affordability issue for ordinary Nigerians, beyond the persistent problem of unreliable supply.
She also questioned the effectiveness of the electricity supply band classification system, particularly situations where consumers on the same feeder failed to receive the minimum hours of electricity supply associated with their respective bands.
The CADEF executive director identified weak consumer confidence in government institutions, electricity distribution companies (DisCos) and regulators as another challenge confronting the sector.
According to the survey, 66 per cent of respondents expressed low trust in government, while 31 per cent reported medium trust and three per cent high trust.
For distribution companies, 57 per cent reported low trust, 39 per cent medium trust and four per cent high trust. Regulators recorded 40 per cent low trust, 53 per cent medium trust and six per cent high trust.
The findings also revealed gaps in consumers’ understanding of electricity regulation.
Although 79 per cent of respondents knew about the Nigerian Electricity Regulatory Commission (NERC), they did not understand its functions, while 40 per cent could not identify the electricity regulator in their states.
Only six per cent said they were aware of grid-related improvements in their communities.
Ndukwe-Okafor said the findings underscored the need for electricity institutions to improve communication with consumers, strengthen accountability and involve citizens in decisions affecting their electricity supply.
Despite the challenges, the survey identified considerable interest in renewable energy adoption.
It found that 89 per cent of respondents were willing to consider renewable energy within the next two years, while 95 per cent were prepared to shift their electricity consumption to different periods to reduce their bills.
Also, 88 per cent said they would be willing to undergo an approval process lasting between two and three months to sell excess electricity generated from their renewable energy systems to distribution companies.
However, CADEF noted that high upfront costs and limited financing opportunities remained major obstacles preventing consumers from translating their willingness into actual adoption.
Concerns about service providers also emerged, with 19 per cent of respondents indicating that they did not trust renewable energy vendors.
The upgraded Renew Energy Naija platform is expected to address some of these challenges by improving access to information about renewable energy technologies and service providers.
Its features include a solar calculator that allows users to enter household appliances, their quantities and wattage to estimate electricity requirements and explore suitable solar system configurations.
The platform also provides a directory of renewable energy service providers, educational materials, policy briefs, consumer survey findings, a glossary of energy-related terms and industry articles.
The initiative is expected to help households and businesses make informed decisions before investing in alternative electricity systems.
Meanwhile, the financing gap in Nigeria’s renewable energy market, particularly for women-led businesses, featured prominently in discussions at the summit.
Delivering the keynote address on behalf of the Founder and National President of the Women in Renewable Energy Association (WIRE-A), Chief Dr. Mrs. Anita Nana Okuribido, Olufunmi Adewale called for financing arrangements that would enable more women to participate in the sector.
She said conventional lending requirements, including collateral, credit history and extensive documentation, had continued to exclude many women-led businesses from available financing opportunities.
Adewale advocated alternative funding mechanisms such as pay-as-you-go arrangements, equipment financing, working capital support, loan guarantees and patient capital.
She stressed that financing strategies should enable women to participate not only as consumers of clean energy but also as entrepreneurs, developers and investors in renewable energy assets.
On the regulatory front, NERC outlined measures being implemented to support the expansion of distributed electricity solutions following the enactment of the Electricity Act 2023.
The commission’s Director of Research and Data Analytics, Abdullahi Adamu, said NERC had issued the Mini-Grid Regulations in April and the Net Billing Regulations in June to provide regulatory direction for emerging electricity market opportunities.
He disclosed that 17 states had completed the process of establishing and assuming regulatory oversight of their electricity markets, while Lagos established its state electricity regulator in December 2024.
Adamu explained that the Mini-Grid Regulations provide for isolated mini-grids of up to five megawatts per site and interconnected mini-grids of up to 10 megawatts.
He added that systems below 10 kilowatts require registration, while larger installations require permits, with applications expected to be processed within 30 business days.
The commission also identified the Forum of Nigerian Electricity Regulators as an important mechanism for coordinating regulatory activities across federal and state electricity markets.
Participants at the summit called for stronger collaboration among regulators, energy companies, financial institutions, consumer organisations and government agencies to address the challenges limiting access to reliable and affordable electricity.
They maintained that Nigeria’s energy transition must be driven by policies that reflect consumers’ realities, particularly the cost of adopting alternative energy, access to financing, quality of service and protection against misleading market practices.
