Solving Nigeria’s electricity crisis through alternative energy sources
Summary
Nigeria faces a severe energy crisis with 60-70% of its population lacking regular electricity access and an average output of 5,000 MW against an installed capacity of 12,522 MW. The report identifies critical bottlenecks including a non-cost-reflective tariff regime, a N1 trillion revenue shortfall as of December 2016, and significant gas flaring despite the country ranking 9th globally in natural gas reserves. While hydropower provided approximately 32% of supply in 2015, other renewables like solar and wind remain underdeveloped. The author recommends the total deregulation of the gas sector, universal metering to close a gap of 4.09 million customers, and the implementation of the renewable energy masterplan to achieve a 10% renewable energy contribution by 2025.
Key insights
- Nigeria's electricity supply is severely inadequate, with an average output of 5,000 MW compared to an installed capacity of 12,522 MW, leaving 60-70% of the population without regular access to electricity.
- The power sector suffers from extreme liquidity challenges, including a N1 trillion revenue shortfall by the end of December 2016 and debts to commercial banks exceeding US$12.52 billion in the last quarter of 2016.
- Despite having the largest natural gas reserves in Africa and ranking 9th globally, Nigeria flares approximately 17.2 billion m3 of gas annually due to high regulation and a tariff system that fails to incentivize investment.
- Revenue collection is hindered by a significant metering gap of approximately 4.09 million customers and unpaid debts from government agencies and military facilities totaling about N93 billion.
- Renewable energy is underutilized; while hydropower contributed about 32% of electric supply in 2015, the government's renewable energy masterplan targets a 10% total energy consumption contribution from renewables by 2025.
- The national grid faces technical constraints that limit electricity generation to between 5,000 and 5,500 MW.
Cite the original document
- APA
- Ibirogba, E. (2018). Solving Nigeria’s electricity crisis through alternative energy sources. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2018/08/NGI-Solving-Nigerias-Electricity-crisis.pdf
- Chicago
- Ibirogba, Eniayo. Solving Nigeria’s electricity crisis through alternative energy sources. Good Governance Africa, 2018. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2018/08/NGI-Solving-Nigerias-Electricity-crisis.pdf.
- Wikipedia
- {{cite report |last1=Ibirogba |first1=Eniayo |title=Solving Nigeria’s electricity crisis through alternative energy sources |publisher=Good Governance Africa |date=2018 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2018/08/NGI-Solving-Nigerias-Electricity-crisis.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{ibirogba2018solving, author = {Ibirogba, Eniayo}, title = {{Solving Nigeria’s electricity crisis through alternative energy sources}}, institution = {Good Governance Africa}, year = {2018}, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2018/08/NGI-Solving-Nigerias-Electricity-crisis.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated