The stark disparity in electricity access in Nigeria has become a sore thumb in the nation’s effort to achieve rapid development, underscoring the deep-rooted socioeconomic challenges faced by the nation to lift many out of poverty. As the quest for scalable energy solutions gains momentum, there is a growing realisation that addressing the electricity deficit could unlock tremendous potential not only for Nigeria but for the entire African continent, WALIAT MUSA writes.

Nigeria, despite being one of Africa’s largest economies, grapples with significant disparities in electricity access between urban and rural communities.

Although reliable and consistent power supply remains in urban areas, most rural communities face persistent outages and limited access to electricity. This imbalance not only hampers economic growth and job opportunities but exacerbates existing social inequalities.

At the recent Nigeria International Energy Summit (NIES) in Abuja, the Minister of Power, Adebayo Adelabu, stated that though adequate access to energy by citizens has been a challenge globally, more than 40 per cent of people in Nigeria are currently affected, as the number of Nigerians that lack access to electricity from the national grid has lately increased to about 92 million.

Currently, the country’s grid electricity generation only supplies between 3,000 and 4,000 megawatts to millions of citizens, indicating a significant shortfall in power provision.

Corroborating Adelabu, at NIES, the Special Adviser to President Bola Tinubu on Energy, Olu Arowolo Verheijen, disclosed that despite many efforts, including sinking over N5 trillion into electricity subsidies in the last few years, about 100 million Nigerians still do not have access to reliable power supply. She acknowledged that this lack of access directly impacts citizens’ ability to achieve meaningful income growth as the lack of reliable electricity limits productivity and restricts economic expansion.

In a startling disclosure, General Manager, Regulation and Compliance at the Transmission Company of Nigeria (TCN), Ali Bukar Ahmad, said Nigeria has only 13.1 million registered electricity customers.

He made this known at the Nigerian Institute of Physics (NIP) Webinar Series 2.0. titled: ‘Policy, Regulatory and Technical Constraints in Achieving Energy Security in Nigeria: The Way Forward.’

Ahmad said that in the Energy Poverty Indices of Nigeria, the country had over 13 million registered customers, which represented 5.7 per cent of the total estimated 230 million population of the country. He said the percentage of metered customers of the over 13 million stood at 44.23 per cent, adding that of the estimated 230 million Nigerian populace, only 2.52 per cent have been metered. He further noted that 60 per cent of the metered customers bypass the meter and contribute to the nation’s energy poverty.

Explaining the statistics further, he said the nation was energy-poor and deficient in energy security. “In Nigeria, we have four types of energy poverty; the unserved, the underserved, the poor quality of supply and the served. Energy security in turn is the bedrock for sustainable development and the attainment of it should leave no one, no citizen behind,” he concluded.

The disparities in electricity distribution across Nigeria have brought to the forefront the pressing socioeconomic challenges facing the nation, as varying levels of access to electricity persist, the inherent implications for economic development and social well-being become increasingly apparent.

Indeed, a correlation between poverty rates and electricity accessibility in Nigeria has been underscored, revealing a critical link between electricity consumption and economic development.

Analysts observe that the unequal distribution of electricity resources underscores a deeper issue, shedding light on the urgent need for comprehensive solutions to address the socioeconomic disparities prevalent in different regions of Nigeria, prompting a critical examination of the existing infrastructure, policies, and initiatives aimed at ensuring equitable access to electricity for all citizens.

The implications of addressing electricity disparities, according to them, extend far beyond the flick of a switch, as a more reliable and accessible power supply has the potential to spur economic activities, drive innovation, and create a conducive environment for businesses to thrive. Small enterprises, often the lifeblood of local economies, could scale up operations, leading to increased job opportunities and a more robust middle class.

Moreover, improved electricity access can enhance the delivery of essential services in education, healthcare, and other critical sectors, contributing to an overall improvement in the quality of life.

Beyond Nigeria, the pursuit of scalable energy solutions holds the key to unlocking Africa’s vast potential. The continent is rich in renewable resources, and harnessing these can not only address the energy deficit but also foster sustainable development. Cross-border collaborations and regional initiatives can further amplify the impact, creating a more interconnected and resilient energy landscape for Africa.

While the shift towards scalable energy solutions is promising, challenges persist. Infrastructure gaps, financing hurdles, and policy uncertainties pose obstacles to the successful implementation of these initiatives. Addressing these challenges will require concerted efforts from governments, private sectors, and international partners to create an enabling environment for sustainable energy development.

In addressing these challenges, findings showed that the Nigerian government and stakeholders are increasingly turning towards scalable energy solutions and investments in renewable energy sources, such as solar and wind power, are gaining traction. Initiatives to decentralize power generation and distribution are being explored to reach remote areas that have long been neglected.

As the disparities persist, the Special Adviser to the President on Energy, Verheijen examined the energy consumption per capita disparity among African countries with South Africa leading at 23,392 Kilowatt-hours (kwh) yearly, followed by Egypt and Morocco at 9,639kwh and 7,237kwh respectively, in contrast, Nigeria’s yearly consumption stands at 2,548kwh translating to 212kwh per month.

Comparing these figures to global standards set by the OECD, which allows for 35,211 kilowatt-hours yearly, Nigeria falls considerably short. The United States of America, with a yearly consumption of 78,754 kilowatt-hours, further highlighted the gap in electricity accessibility.

She emphasised the profound impact of electricity on economic growth and industrialisation, the urgent need for comprehensive strategies to address electricity disparities, laying the groundwork for a more inclusive and economically vibrant future for all Nigerians.

She further urged policymakers and stakeholders to prioritise initiatives that bridge the electricity accessibility gap and drive sustainable development.

Verheijen added that the parallel between the number of people living in poverty and those without access to electricity in Nigeria is not accidental as the link between electricity consumption and economic development is well-established across different countries with different income strata.

She mentioned that the economic impact of energy poverty on economic development cannot be overstated as businesses that operate in Nigeria continue to struggle with high operational costs and lower productivity, making them less competitive both globally and locally, which in turn, affects job creation and limits income growth opportunities.

Speaking on the impact of energy poverty on households, she emphasised that the lack of access to clean and reliable energy sources has profound implications for education and health, which remained important determinants of economic mobility as students struggle to read in the dark, hospitals operating on generators stretched to the limits, unable to perform at full capacity.

“Real energy access goes beyond household lighting because it seeks to enable a diverse array of activities that are fundamental to modern existence and economic progress, not just fundamental, but they are fundamental to the human dignity of an individual.

“We must look at powering businesses, machinery, computers, and industrial equipment essential for today’s economy. The goal is to provide reliable, affordable, and clean energy at a scale and pace that fosters economic expansion, job creation, and increased incomes across Nigeria and the wider continent,” she said.

However, she said for Africa to unlock its full economic capabilities, energy solutions must be scalable and sustainable with support to both rural and urban economies as urban society can’t grow without the rural economies, noting that the vision must go beyond home lighting to energizing industries.

Corroborating her views, the Minister of Power, Adelabu, said all the country’s potential in human resources, and natural mineral resources, can only be realised when fully energized as it is key to achieving significant economic growth and the desired industrial development.

“So, it is no coincidence that most of the world-acclaimed developed nations focus on the provision of adequate electricity for their society before they can achieve the kind of feats which they achieved in industrial development. A country like South Korea, which has just about 49 million people, generates about 130,000 megawatts of power.

“Collaboration between governments, businesses and international organisations is key to unlocking the full potential of our efforts. This sector must be attractive for equity investments and debt capital; our model must be bankable to attract investors and lenders. Transforming the power sector requires a lot of investments both local and foreign,” he said.

The Managing Director and Chief Executive Officer (CEO) of NEWS Engineering Limited, Josephine Nwaeze, emphasised the critical nature of funding accessibility, describing it as a formidable challenge.

Nwaeze, who highlighted the difficulty in obtaining funds, identifying it as a significant barrier to achieving energy access, pointed out that when dealing with banks interested in providing financial support, stringent and challenging conditions are often imposed at the crucial stage when funding is required.

She observed that numerous projects, not exclusive to her company but across various Nigerian firms, remain unfinished due to challenges in securing adequate funding.

She also emphasised the importance of collaboration as a means for Nigerians to enhance their capacity, particularly in areas where capabilities are lacking. However, she pointed out a significant challenge: the components of off-grid systems, crucial for energy solutions, are often not manufactured domestically; hence, reliance on imports poses a notable barrier to achieving self-sufficiency.

She added that there is an insufficient effort towards empowering indigenous companies to commence local manufacturing of these products, emphasising that continuous reliance on imports would perpetuate the rising cost of production. She urged the Federal Government to take concrete actions if serious about extending power to remote areas and underserved regions, stressing the need for initiatives supporting the local production of essential components.

“We have resources in Nigeria that when it’s harnessed, we can manufacture things like solar panels, we can go into battery manufacturing, and some other things, bringing something like import duty, free import duty on these things will also help to bring down the cost of these components because any production you do here that cannot compete with China price, you are on your own,” she said.