Solving Nigeria’s electricity crisis through alternative energy sources

This report by Good Governance Africa-Nigeria analyzes the systemic failures of Nigeria's power sector and advocates for the expansion of renewable energy and the deregulation of the gas sector to address chronic electricity shortages and economic losses.

• Nigeria faces a severe energy crisis where 60% to 70% of its population of nearly 200 million people lack regular electricity access, resulting in estimated annual economic losses of approximately N126 billion (US$ 984.38 million).
• There is a significant gap between Nigeria's installed power capacity and its actual output; while the installed capacity is 12,522 MW, the average output is only 5,000 MW, which is far below the electricity demand of 41,133 MW.
• The power sector is plagued by severe liquidity issues, with a revenue shortfall reaching N1 trillion by the end of December 2016 and debts to commercial banks exceeding US$12.52 billion in the same period.
• Despite possessing the largest natural gas reserves in Africa (ranking 9th globally with 180 trillion-cubic feet), Nigeria's power generation is constrained by high regulation, non-cost-reflective pricing, and significant gas flaring, totaling about 17.2 billion m3 per year.
• Revenue collection is inefficient, with Distribution Companies (DisCos) generating revenue from only about 50% of end users. This is exacerbated by a metering gap of approximately 4.09 million customers and N93 billion in unpaid debts from government agencies and military facilities.
• The Nigerian government has introduced a renewable energy masterplan aiming for renewables to contribute 10% of total energy consumption by 2025, though development in solar, wind, and biomass remains modest compared to hydropower, which provided about 32% of the electric supply in 2015.
• To resolve the crisis, the report recommends the total deregulation of the gas sector to allow market-determined pricing, the implementation of a nationwide prepaid billing system, and the provision of fiscal incentives such as waiving import tariffs on renewable technology.

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} }