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An overview of power sector laws, policies and reforms in Nigeria

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AN OVERVIEW OF POWER SECTOR LAWS, POLICIES AND REFORMS IN NIGERIA
BY
Zubairu Gatugel USMAN, Serkan ABBASOGLU
Department of Energy Systems Engineering, Cyprus International University, Nicosia, Cyprus.
Abstract- This paper is concerned with Nigeria’s
energy sector challenges and reforms put forward
by the Government to tackle the challenges. Laws
and policies aimed at addressing the various
energy generation, transmission and distribution
challenges bedevilling the energy sector are stated
and explained. Various strategies were employed
by the Government which include encouraging
private sector participation, diversification of the
energy generation sources and promoting energy
efficiency for sustainable development. The
Government has spent billions of dollars since
2003 in the construction of new power generation
facilities, transmission lines and distribution
centres to boost the power supply and at the same
time initiated the process of selling off the existing
facilities to private investors. Also, the Energy
Commission of Nigeria embarked on programs
and strategies aimed at boosting energy
generation from renewable sources. On the other
hand, the commission focus on the need for energy
efficiency on both demand and supply side to
reduce greenhouse gas emissions and viability of
energy systems. The renewable energy sector was
boosted by the implementation of various
renewable energy generation projects such as the
Lekki biogas plant, the Katsina wind farm and
the establishment of renewable energy research
and development centres across the country.
Keywords: Electrical energy laws; Energy policies
and reforms; Energy potentials; Nigeria.
I. INTRODUCTION
Nigeria is endowed with abundant renewable and
non-renewable energy resources like solar, wind,
biomass, crude oil, coal, natural gas and bitumen.
Manuscript submitted March 25, 2014 and accepted June 06, 2014.
ISSN: 2221-4267
Paper code: ATE-80414027
Asian Transaction on Engineering vol.4, June 2014.
The two authors are with the Department of Energy Systems
Engineering, Cyprus International University, Haspolat - Nicosia,
Mersin 10 Turkey.
Z. G. Usman (usman.gatugel@yahoo.com)
S. Abbasoglu (sabbas@ciu.edu.tr)
The country’s oil production is currently 2.5 million
bbl /day but less than 17% of total oil produced is
allocated to the country’s three oil refineries with
total installed capacity of 445,000 bpd [1].
The International Monetary Fund (IMF) estimated
that revenue from crude oil and natural gas export
accounted for 96% of the country’s total export
revenue in 2012 [2].
This means that only a fraction of Nigeria’s total oil
and gas production is made available for domestic
use, making the majority of the country’s population
who cannot afford to buy generators to rely heavily
on wood fuel for their energy needs.
The absence of reliable energy supply rendered the
rural populace socially backward and their economic
potentials untapped. The country’s proven energy
reserves are shown in the table below.
Table 1. Nigeria's energy reserves and potentials
(2005) [3].
Resources type Reserves
Crude oil
40.0 billion barrels
Natural gas 5.2 trillion Nm3
Coal and lignite 2.7 billion tonne
Tar sands 31 billion barrels of oil
equivalent
Hydropower (large
scale)
10,000 MW
Hydropower (small
scale)
734 MW
Wood fuel 43.1billion tonnes/year
Animal waste 61 million tonnes/year
Crop residue 8.3 million tonnes/year
Solar radiation 3.5 to 7.0 Kwh/m2/day
Wind 2 to 5 m/s (annual
average) at 10m height
Nigeria is the largest oil producer in Africa and holds
the largest natural gas reserves on the continent. It
was the world's fourth leading exporter of liquefied
natural gas (LNG) in 2012.
However, its gas-dominated electricity grid still
experiences frequent collapse due to inadequate gas
supply, obsolete infrastructures and inconsistent
Government policies.
Despite the availability of these resources, majority
of Nigerians continue to experience epileptic power
supply. An estimated 62% of Nigerians rely on wood
fuel for their entire energy needs resulting in massive
deforestation [3] [4]. This trend is worsening in rural
areas due to the communities having no access to
electricity and increase in poverty. The National
Electricity Survey carried out in 2006 indicated that
majority of the southern zones are connected to the
national grid. More than 60% of households in the
South-East were connected to the grid while South-
South’s figure was 61.2% and South-West’s 78.1%.
The households in the North-East had the least access
to electricity among the six zones in the country. The
study further revealed that 38.1% of the rural
populace, 12.1% of the rural poor and 29.8% of the
urban poor in Nigeria had access to electricity.
The epileptic nature of the country’s electricity
propelled the rich to rely heavily on generators which
caused the use of petroleum products to increase by
75% in 2012, but the less privileged had no option
rather than wood fuel for their energy needs [5].
The country’s electricity consumption per capita in
2012 was 12 watts/person which is very low
compared with most countries in the world like
Brazil with 268 watts/person, Spain 645 watts/person
and South Korea 1,038 watts/person in the same year
[6]. The heavy reliance on wood fuel for energy
makes Nigeria a country with high energy intensity
of 0.36 koe/$5p compared to Turkey with 0.11
koe/$5p and Egypt 0.18 koe/$5p [7].
The US Energy Information and Administration
estimated that traditional biomass and waste
accounted for 83% of Nigeria’s total primary energy
consumption in 2011.
Fig. 1. Total primary energy consumption in Nigeria,
2011[2].
II. LITERATURE REVIEW
According to Ladan (2009), Nigeria is blessed with
abundant renewable energy sources like wind, solar,
biomass, geothermal and hydro but the country
continue to experience epileptic power supply. Over
60% of Nigerians rely on wood fuel for their entire
energy needs resulting in massive deforestation.
Babanyara and Saleh (2010) indicate that the country
lost an average of 410,000 hectares of forest between
1990 and 2000 which culminated to an average
deforestation rate of about 2.4% per annum.
Ikuponisi (2004) argues that based on Nigeria’s land
area of 924 x 103 km2 with an average solar radiation
of 5.535 kWh/m2/day, the country can generate
power from solar energy that is 27 times the total
conventional power generation capacity in the
country.
Onakoya et al. (2013) points out that the
commercialization and privatization decree No. 25 of
1988 which was aimed at addressing the acute power
shortages at the time did not yield the desired result
due to the inability of the government to implement
the refroms. As a result, majority of Nigeria’s power
plants are working below 60% of their total installed
capacity.
According to Aliyu et al. (2013), Low power factor
and high transmission and distribution losses
estimated at 28% are main factors causing large scale
blackouts across the country. The problems
bedevilling the power sector in Nigeria stem from
decades of neglect, mismanagement and inadequate
capacity improvement.
Most of the authors focused their attention on the
challenges and potentials of power generation in
Nigeria with limited details on the recent policies
adopted by the Government to contain the crisis.
In contrast, this study discusses the various
challenges, reforms and policies recently adopted and
are being implemented by the Government to
improve the power sector performance in Nigeria.
III. POWER SECTOR POLICIES AND REFORMS
The history of electricity in Nigeria dated back to
1898 when the first generating plant with a capacity
of 60KW was installed in Lagos. In order to
effectively coordinate the electricity development,
the then-colonial government passed the ECN statute
No. 15 of 1950 to establish the Electricity
Corporation of Nigeria (ECN). By Decree No. 24 of
1st April 1972, The ECN and the Niger Dam
Authority (NDA) were merged to form the National
Electric Power Authority (NEPA) to enable a more
effective management of the power sector in the
country. In 1988, the Commercialization and
Privatization Decree No. 25 was aimed at partial
commercialization of power to address the acute
power shortages. The reform did not produce the
desired effect, since the country’s power plants with
total installed capacity of over 6,000MW as at 1998
have been operating below 60% of their total
installed capacity [8].
Majority of the Government owned power plants in
the country are performing below their installed
capacity in 2010 as shown in figure 2. This is partly
caused by lack of maintenance and underfunding by
the Government [9] [10].
Table 2 Government owned power plants in Nigeria
[9]
Power Plant Installed capacity (MW)
Kainji 760
Shiroro 600
Jebba 540
Egbin 1,320
Sapele 1,020
Afam (IV – V) 726
Ughelli 900
Omotosho I 304
Olorunsogo I 304
Calabar 6.6
Orji river 10
TOTAL 6,490.60
Fig. 2 Performance of federal Government’s power
plants.
There are independent power producers (IPPs) and
state Governments currently generating electricity in
the country as shown in table 3.
Table 3 Existing thermal power plants built by state
governments and the private sector [9].
Power Plant Installed capacity (MW)
AES 224
Shell - Afam VI 650
Agip - Okpai 480
*ASG – Ibom power 155
*RSG – Trans Amadi 100
*RSG - Omoku 150
Total 1,759
*Power plants owned by state Governments
Fig. 3 Performance of IPPs in Nigeria[9]
The enormity of the problems in the power sector
propelled the Government to form the Electric Power
Implementation Committee (EPIC) in year 2000.
This Committee prepared the National Electric
Power Policy (NEPP) in 2001 and the National
Energy Policy in 2003 with the overall theme of
optimal utilization of the nation’s energy resources;
from fossil fuels and renewable sources, for
sustainable development with the active participation
of the private sector. The policy articulated the
following decisions [11]:
(a) Extensive crude oil and natural gas
exploration and development shall be
pursued,
(b) Extensive development of electric power to
make reliable electricity available to 75% of
the population by 2020 and to broaden the
energy generation options.
The committee established the National Independent
Power Projects (NIPP) in 2004 as a fast-tract
government funded initiative to stabilize the power
sector and drafted the Electric Power Sector Reform
Act (EPSRA) 2005. The EPSRA proposed the
incorporation of an initial holding company called
Power Holding Company of Nigeria (PHCN) to
assume assets and liabilities of NEPA. Between 2004
and 2007 contracts worth $13.28 Billion for the
construction of power plants, associated transmission
lines and substations were awarded under the NIPP
[12]. Majority of the power plants conceived in 2004
mentioned below, are sited in the oil producing states
of the Niger delta to help stem gas flaring by the oil
companies [13].
Table 2. Power stations funded through the NIPP in
2004 [12] [13].
S/n Power plant Capacity
1 Calabar Power Station 561 MW
2 Ihovbor Power Station 450 MW
3 Sapele Power Station 450 MW
4 Egbema Power Station 338 MW
5 Gbarain Power Station 225 MW
6 Omoku Power Station 250 MW
7 Alaoji Power Station 1,074 MW
8 Geregu II Power Station 434 MW
9 Omotosho II Power Station 500 MW
10 Olorunsogo II Power Station 750 MW
Four out of the ten power stations listed in table 2,
have recently been commissioned but some of them
are still not operating at full capacity. Geregu II with
an installed capacity of 434 MW, is only generating
144 MW and also Olurunsogo II with installed
capacity of 750 MW is currently generating 562.5
MW.
In late 2007, two more hydroelectric power projects
were initiated by ministry of power. They are the
Zungeru Hydroelectric Power Project with a capacity
of 950 MW and Mambila Hydroelectric Power
Project with a capacity of 2600 MW.
The EPSR Act, 2005 has 3 components [13] [14]:
1) The creation of the Power Holding
Company of Nigeria (PHCN) to assume the
assets, liabilities and employees of NEPA.
2) The breaking up of PHCN’s three hydro and
seven thermal generating stations, a radial
transmission grid (330 kV and 132 kV); and
eleven distribution companies (33kV and
below) and the partial transfer thereto of the
assets, liabilities and staff of PHCN to these
companies and preparing them for
privatisation
3) The establishment of the Nigerian
Electricity Regulatory Commission (NERC)
The absence of a cost-reflective tariff is one of the
reasons for the failure of the power sector to serve
Nigerians in the past three decades. Fully efficient
cost recovery is mandated by S.76, EPSR Act, 2005.
The NERC drafted the Multi Year Tariff Order
(MYTO) which envisages an efficient tariff system
that gives the consumer right to a reliable electric
service and transparent billing at the same time
ensuring that the investor has reasonable return on
investments. Grid metering at various identified
points in the transmission grid shall be installed,
tested and commissioned [15] [16].
Between August 2006 and June 2007, twenty
licenses were issued to Independent Power Producers
(IPPs) in different parts of the country. Altogether,
they are expected to add about 8,000 MW of
electricity to the national grid when they are
completed.
The Government completed the privatisation of 11
distribution and the generation companies and
handed them over to their respective buyers in phases
between November 2013 and February 2014. As
stipulated in the EPSR Act, 2005 both the generation
and distribution companies were sold to private
investors and the Nigeria Bulk Electricity Trading
Plc. (NBET) was established as part of the roadmap
for Power Sector Reform of August 2010 to act as a
broker between the independent power producers
(IPPs) and the distribution companies. The NBET’s
role is to purchase power from the IPPs and resale it
to the distribution companies [17].
As part of its plan to improve the power supply, the
Government established the National Atomic Energy
Commission (NAEC) in July 2006, which upon its
inception drafted the country’s nuclear roadmap. The
roadmap is a three-phase framework which aims to
generate 1,000 MW of electricity through nuclear
power by 2017 and to increase this to 4,000 MW by
2027 [3] [13] [14].
IV. RENEWABLE ENERGY POTENTIALS IN
NIGERIA
Nigeria has high potential to harness energy from
renewable sources since it lies within the tropic of
Cancer where there is abundance of sunlight. The
country’s annual average daily solar radiation is
about 5.535 kW/m2/day, varying between 3.5
kW/m2/day at the coastal areas in the south and 7.0
kW/m2/day at the northern boundary [18] [19]. The
country receives about 4.851x 1012 kWh of energy
per day from the sun. This is equivalent to about
1.082 million tons of oil equivalent (mtoe) per day,
and is about 4 thousand times the current daily crude
oil production and 13 thousand times that of natural
gas daily production based on energy unit. Based on
the country’s land area of 924 x 103 km2 and an
average of 5.535 kWh/m2/day, Nigeria has an
average of 1.804 x 1015 kWh of incident solar energy
per annum. This annual solar energy insolation value
is about 27 times the country’s total conventional
energy resources in energy units.
Also wind energy is available at an annual average
speed of 2.0 m/s near the coast to 5.0 m/s at the
height of 10m in northern parts of the country.
Nigeria possesses enormous potential to utilize
energy from the wind and the sun for electricity
generation. The potential for bioenergy development
is equally high because roughly 74 million ha of
Nigeria’s total land (98 million ha) is arable and
about 60% of the arable land is lying idle [3] [20]
[21] [22] [23].
V. ENERGY EFFICIENCY AND RENEWABLE
ENERGY POLICIES
The national energy policy of 2003 came up with the
Renewable Energy Master Plan for Nigeria (REMP)
in 2006 [11] [13] [14]. The REMP articulates:
Nigeria’s vision for achieving sustainable
development,
A road map for renewable energy to help
achieve this vision;
The plan recognized the need to strengthen and
diversify the country’s energy sources and encourage
the participation of the private sector in energy
production and supply. The ECN which was
established by Act No. 62 of 1979 and amended in
1988 and 1989 was consequently reinvigorated with
a statutory mandate for strategic planning and co-
ordination of national policies in the field of energy
in all its ramifications.
By this mandate, the Energy Commission of Nigeria
is the apex government organ empowered to carry
out overall energy sector planning & policy
implementation, promote the diversification of the
energy resources through the development and
optimal utilization of all the sources, including the
introduction of new and alternative energy resources
like Solar, Wind, Biomass and Nuclear Energy [18].
Based on recommendations from energy
commission, the Government established national
inventories to estimate the annual emissions of
greenhouse gases in the country for every 3 years
starting from 1988. The estimates indicated that CO2
emissions have been dominated by the energy sector.
Gas-flaring, electricity generation and transport
sectors are the most significant ones. Nigeria’s CO2
emission is the highest in Africa, contributing 3% of
global emission while the whole of Africa contributes
only 4% [24].
Energy Commission of Nigeria established five
energy research centres across the country to carry
out research on renewable energy. The centres are
[3]:
1) The University of Nigeria Nsukka National
Centre, responsible for research in
renewable energy and solar.
2) The Usman Danfodiyo University Sokoto
Energy Research Centre, responsible for
research in renewable energy and solar.
3) The University of Lagos, National Centre
for Energy Efficiency and Conservation
4) The University of Ilorin National Centre for
Hydropower Research and Development
5) Abubakar Tafawa Balewa University
Bauchi Centre for Petroleum Research and
Development.
The present total contribution of renewable energy to
the energy mix as a result of concerted efforts by the
energy commission in collaboration with the research
centres grew up to about 35 MW composed of 30
MW small hydropower and 5 MW solar PV which is
still relatively low compared to what is obtained in
most developing countries around the world. But the
Government has several targets it aims to achieve by
2025: Wind: 40 MW, Solar PV: 500 MW, Biomass-
based power plants: 400 MW, Small-hydro: 2, 000
MW [24].
Also the energy commission has been collaborating
with several donor agencies, multinational
companies, environmental agencies, ministries and
some non-governmental organisations to raise
awareness on energy efficiency and renewable
energy systems in Nigeria. Some of these projects are
as follows:
A. Urban mass transit
The phenomenon of rapid urbanization in Nigeria's
big cities creates a mobility problem for the cities'
residents. Nigeria’s vehicle importation has been
increasing at the rate of 15 to 20% annually from
2004 and increased to 45% in 2012 [25]. To improve
the capacity to manage the transport sector in the
Lagos metropolitan area and to enhance efficiency
and effectiveness of the public transport network in
Lagos, the Lagos State Government got funding from
the world bank and some donor organisations to
provide mass transit buses on special lanes along the
major streets in the City known as Bus Rapid Transit
"lite" systems, commonly referred to as "BRT-lite”.
The system provide better and more sustainable
travel options at a low cost for commuters around the
city ferrying around 20,000 people per day. It has
been very successful and had contributed to a
considerable reduction in transit time, traffic and
GHG emissions [26].
B. Pilot campaign for energy efficiency lamps
The ECN in collaboration with United Nations
Development Program (UNDP) and the Federal
Ministry of Environment launched a grand campaign
for energy efficient lamps. They distributed one
million Compact Fluorescent Lamps (CFLs) to
households, businesses and public service buildings
leading to peak reduction of 38 MW of electricity in
Abuja and Lagos. The project also launched a unique
end-use metering campaign across Nigeria to better
assess the current level of efficiency of appliances
used in the country [24].
C. Energy generation from waste-materials
The locally made biogas plant is constructed in Lekki
Local Council Development Area of Lagos state with
funding from the Federal Ministry of Environment
and United Nations Development Programme. The
plant converts water hyacinth and other local organic
waste to produce fertiliser and at least 10KVA
electrical energy. The main objective of the project is
to establish a locally based waste management
strategy in the area to reduce waste, generate energy
and improve livelihoods [27].
D. 10MW Katsina wind farm project
In line with the Government’s policy of promoting
renewable energy, a wind map for the entire country
has been developed, indicating numerous viable sites
for the deployment of wind turbines for power
generation. A contract for the construction of a
10MW Wind Farm at Lamban Rimi Village in
Katsina state was awarded by the Federal
Government in 2009. The configuration consists of
37 x 275 kW wind turbine generators mounted at a
height of 55m on an inclinable tower. The project has
been fully funded until now and its implementation
has progressed very smoothly [28].
As at October 2013, peak demand forecast by the
federal ministry of power stood at 12,800 MW
whereas the total power Generated fed into the grid
was 3,418.60 MW. Nonetheless, the Government
aims to generate about 10,000 MW of electricity by
2015.
VI. CONCLUSION
Nigeria has been experiencing acute power shortages
in the last three decades despite having enormous
energy resources. It is estimated that only 38% of the
country’s population have access to electricity
leaving the remaining 62% to rely heavily on wood
fuel for their daily energy needs resulting in massive
deforestation. The country’s population more than
doubled within the last three decades, from 75
million to 173 million. But the amount of power
generated by all the country’s power generation
facilities made up of 22% hydro and 78% thermal
power plants with total capacity of 6,976 MW is still
less than 4,000 MW. This can barely serve even 10%
of the country’s growing population which is
estimated to reach 300 million by 2030. Nigeria’s
electricity consumption per capita in 2012 was 12
watts/person which is very low compared with most
countries in the world like Brazil with 268
watts/person, Spain 645 watts/person and South
Korea 1038 watts/person in the same year. The heavy
reliance on wood fuel for energy makes Nigeria a
country with high energy intensity of 0.36 koe/$5p
compared to Turkey with 0.11 koe/$5p and Egypt
0.18 koe/$5p. Although the Government took some
steps to address the problems in the power sector
such as; the enactment of the energy sector law of
2005 which resulted in the establishment of the
Nigeria Electricity Regulatory Commission, the
Nigeria Bulk Electricity Trading Plc and the
privatisation of the generation and distribution
companies owned by the Government. These steps
taken by the Government have positive impact on the
entire sector. But the desired goals can only be
achieved if renewable energy generation is given
more emphasis as the country is endowed with
abundant renewable energy sources. For instance; the
country’s average annual solar radiation of 5.535
kWh/m2/day if harnessed properly, can generate 27
times the country’s total energy generated by the
conventional energy sources. Renewable energy
sources like; solar, wind and biomass should be
harnessed to compliment the conventional energy
sources in power generation to help meeting the
massive electricity demand in the country.
Further studies should be carried out to evaluate the
performance of the power sector after the completion
of the privatization process. This will shed more light
on which of the policies and reforms implemented
are yielding the desired effects.
ACKNOWLEDGMENT
The Authors would like to thank Dr. Neyre Tekbiyik
Ersoy for her time and academic support in the
preparation of this paper. Also Energy efficiency
policy should be strengthened and applied to both
demand and supply sides.
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Serkan ABBASOGLU: The author received B.Sc.
and M.Sc. degrees on Mechanical Engineering from
Yildiz Technical University, Turkey in 1997 and
1999, respectively. He received his Ph.D. degree on
Mechanical Engineering form Eastern Mediterranean
University, Cyprus at 2006. He worked as invited
researcher in Freiberg Technical University,
Germany between 2001 and 2002 with DAAD
scholarship.
He was assigned to Assistant Prof. position in 2007
and to Associate Prof. position in 2011 by Cyprus
International University (CIU). He is head of Energy
Systems Engineering Department and also
Coordinator of Rector’s Office in CIU.
He is working on Energy Management, Renewable
Energy and Energy Efficiency topics since 2004. He
has 6 SCI indexed papers and more than ten other
international publications in these fields.
Assoc. Prof. Dr. Abbasoglu, is an acredited
Energy auditor by Association of Energy Engineers,
an active member of Renewable Energy Council of
Northern Cyprus, also members of Association of
Energy Professionals in Northern Cyprus, Chamber
of Mechanical Engineers, and Energy Efficiency
Agency of Northern Cyprus.
Zubairu Gatugel USMAN: The author received his
B.Eng. degree in Electrical and Electronics
Engineering from the Federal University of
Technology, Yola-Nigeria in 2005. He is now doing
his MSc. Energy Systems Engineering in Cyprus
International University, Nicosia- North Cyprus. He
worked with Energovod Engineering Limited from
2006 - 2010 as a project Engineer in the construction
of Alaoji-Calabar 330KV double circuit transmission
line and Afam-Port Harcourt 330KV double circuit
transmission line. He works as a part time consultant
in electrical and power systems with mutual
infrastructure limited. The author joined Kaduna
Polytechnic in August 2010 as a lecturer in the
department of Computer Engineering. He is a
registered Engineer with the Council for the
Regulation of Engineering in Nigeria (COREN) and
a member of the Nigeria Society of Engineers (NSE).
... Finally, a regulator was created. This is the Nigerian Electricity Regulatory Commission (NERC) [30][31][32][33]. Refer to Figure 3 for a graphical representation of the Nigerian electricity sector. ...
... With all the risks of electricity theft, old infrastructure and vandalism NERC still does not allow the DISCOs charge cost effective tariffs [30,34]. The problems of the Nigerian energy sector, like that of many other developing countries, are many and well documented in the old paradigm of energy poverty research [4,20,24,30,[32][33][34][35][36]. But as we can see there has been little to no amelioration in the last 3 decades. ...
Chapter
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There are over 800 million people in the world without access to modern forms of energy services, like electricity, cooking gas, and LPG. This has been called energy poverty. Most studies in the field of energy poverty address the issue from an absence of technological or financial resources perspective. They address the problem as energy in itself having an objective inherent value, more or less addressing the symptoms of the problem and not the problem itself. In this chapter, a new paradigm that addresses the problem of energy poverty and malinvestment is introduced. This paradigm, utilizing the theory of economic calculation and the use and exchange value embodied in the subjective value theory, makes a case for the importance of private property rights in the factors or means of production for modern forms or energy such as electricity. The Nigerian energy sector is used as a case study for this.
... Also (Gatugel Usman et al., 2015) concludes that transforming the NESI for sustainable growth and development mitigation of energy poverty and corruption is critical and must be pursued. Other aspects of the NESI that have been discussed in the literature include power sector laws (Usman & Abbasoglu, 2014), decentralization of the grid (Alao & Awodele, 2018), policy analysis (Audu et al., 2017), and productivity analysis (Barros et al., 2014). Based on this literature, the efficacy of the reforms in improving the Nigerian power sector has remained ambiguous. ...
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To improve the electricity services in Nigeria, the government has embarked on a total reform of the Nigerian Electricity Supply Industry. The reform started with rehabilitating the government-owned electricity infrastructures in 1999 and implementing the 2010 Power Sector Reform. While some stakeholders have seen these reforms benefit the industry, others have yet to see the positive impact of the reforms. Based on this premise, this work presents a synopsis of the Nigerian power sector’s past, present, and future. A review of its state of the art is explored and presented using documents and recent literature on the Nigerian electricity sector. Findings from the study show that infrastructural deficits and administrative lapses dominated the pre-liberation era. The privatization of electricity led to organizational structure and infrastructure improvements. The sector was unbundled into the GenCos, TransCo, Discos, and the regulatory bodies assigned well-defined tasks. The generation capacity has increased to 16,384 MW against the pre-liberation figure of approximately 6000 MW. As against the approximate figure of 10,000 km covered by the transmission infrastructure, an additional 10,000 km has been added to the existing transmission facilities. Although there have been improvements in service deliveries, there are still more grounds to cover to stabilize the Nigerian electricity sector. It is proposed that stakeholders harmonize the various policies and structural changes to make the necessary improvements.
... Some of the energy sources include wind, solar, crude oil deposits, Liquefied Natural Gas (LNG), bitumen and many others. Most experts and commentators such as Zubairu and Serkan (2014) have lamented that the absence of reliable power supply to the nation and its teeming populace has rendered the Nigerian system bankrupt characterized by low industrial output, food crises and food insecurity; bourgeoning unemployment, insecurity, galloping inflation, youth restiveness, kidnapping for pecuniary gains excessive government borrowing, economic uncertainties and all what nots. The contradiction here is that the nation has very huge energy reserve that have been hardly tapped. ...
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The main objective of this paper is to examine the nexus between the reforms that have been carried out in Nigeria concerning the power sector, and the implications of the reforms on the transformation of agro-allied industries. The power sector, no doubt, can be said to have the potential that can propel national development considering the overall importance of energy to the survival of the nation in terms of job creation, industrial development and sustenance as well increase in revenue generation and Foreign Direct Investment opportunities, among others. The unfortunate situation, however, is that in spite of a number of policies enunciated by successive governments aimed at improving on the power sector, not much has been achieved. The multiplier effect of this kind of development has been seen in the widespread epileptic power shortages, downward spiral of efforts towards industrial development drive; unemployment, shortage of national revenue accruing to government coffers, bourgeoning and rising poverty levels, to mention but a few. All of these have further contributed to the growing army of problems currently being witnessed in the country at the moment. This study is a theoretical exposition of the existing works of scholars and experts in the broader field of power sector reforms. The paper is exploratory in structure and method of its investigation. The study concludes and recommends that in view of the prevailing socioeconomic circumstances in Nigeria, genuine reforms in the energy sector devoid of political rhetorics will go a long way in mitigating some of the challenges of contemporary times in the power sector.
... Nigeria energy reserves and its potentials are, in 2005, its crude oil is 40.0billion barrels, natural gas amounting to 5.2 trillion Nm 3 , coal and lignite 2.7 billion tonnes, Tar sands 31 billion barrels of oil equivalent, Hydropower (large scale) 10,000 MW, small scale Hydropower 734MW, Wood fuel 43.1 billion tonnes per year, Animal waste 61 million tonnes , Crop residue 8.3 million tonnes per year, Solar radiation 3.5 to 7.0 Kwh per metersquare per day, Wind 2 to 5 m/s ( annual average) at 10m height (Usman & Abbasoglu, 2014). ...
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Frequent reports ad statistics in the newspapers are indicating that unemployment is the major macroeconomic variable that is bedeviling Nigeria’s economy. This study examined the impact of fiscal policy shocks on unemployment in Nigeria based on Lerner’s framework. The study employing Structural Vector Autoregression (SVAR) methodology to analyze annual time series data on the relevant variables from 1985-2018. Augmented Dickey-Fuller (ADF) test for unit root results shows that all the variables were found to be integrated of order one and Johansen cointegration test confirms the absence of long-run convergence among the variables. Vector Autoregression (VAR) residual LM test shows no serial correlation among the error terms. Findings of the study shows that shock in public capital expenditure attributes stable negative impact on unemployment. Increase in public recurrent expenditure was found to have positive effect on unemployment while shocks in money supply was found to have insignificant impact on unemployment in Nigeria. The study recommends that government should reschedule its budgeting system by allocating more funds to capital expenditure and less to recurrent expenditure so as reduce unemployment.
... Although Nigeria is relatively endowed with abundant fossil fuels and other renewable energy sources, the energy situation in the country is yet to be structured and managed in such a way as to ensure sustainable energy development, most especially in the industrial sector. Nigeria as a nation is passing through a serious energy crisis and it has been even more affected not by a lack of energy resources, but largely due to poor resource and financial management, a crippling dependence on imports particularly second-hand goods built with out-dated, inefficient technology etc [7] . As a nation that has limited technological capacity but sees industrialization as constituting a crucial leverage and precondition for meaningful development, Nigeria should be wise enough to manage her scarce energy resources judiciously. ...
... The author concludes by highlighting some key policies that could help address some of the identified barriers in order to ensure a secured sustainable energy future for Nigeria. Other notable works are [4][5][6][7]. Researches on energy generation using wood as source of heat and their methods of analysis were reviewed by [8][9][10][11]. ...
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The issue of energy shortage in Nigeria has been a concern for both the Nigerian government and the people for the past four decades. In many third world countries and indeed many parts of Africa, Nigeria inclusive, electricity is abysmally in short supply. This is somehow due to over dependence on fossil fuels which accounts for greater part of the power generation but with an unreliable supply chain. This study seeks to apply Split-Split plot experimental design as statistical tool to analyze factors that influence the calorific value of mangrove wood during combustion for electricity generation. The combustion process was carried out at the National Centre for Energy and Environment, University of Benin. Each of the wood samples was pulverized to enable easy combustion. Bomb calorimeter was used to carry out the test on the various pulverized wood samples. The calorific value of each sample was collected and recorded in three replications. The result of the study shows that the raw materials location has differential treatment effect on the calorific value of the raw material type employed. It was discovered that the differential treatment effect produced by the raw materials type is largely due to the location of the raw materials. The result obtained from the analysis also shows interaction between the raw materials location and the different raw material types to influence the calorific value of the white mangrove, red mangrove and rubber wood used in this study. Nomenclature X. This is an operation indicating interaction between the blocks and the treatments. A Raw materials (wood) location B Raw materials (wood) type C Raw materials (wood) location  raw materials (wood) type interaction  Overall population mean i  Model block parameter for raw materials (wood) location  Confidence level j  Model treatment parameter for raw materials (wood) type   ij  Model block for raw materials (wood) location  raw materials (wood) type interaction   ijk l  Error component E SS Sum of squares for error T SS Sum of squares for total A SS Sum of squares for wood location B SS Sum of squares for wood type C SS Sum of squares for wood location  wood type interaction Error Discrepancy or deviation from mean value cal F Fisher's ratio (calculated value)
... The author concludes by highlighting some key policies that could help address some of the identified barriers in order to ensure a secured sustainable energy future for Nigeria. Other notable works are [4][5][6][7]. Researches on energy generation using wood as source of heat and their methods of analysis were reviewed by [8][9][10][11]. ...
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Full-text available
The issue of energy shortage in Nigeria has been a concern for both the Nigerian government and the people for the past four decades. In many third world countries and indeed many parts of Africa, Nigeria inclusive, electricity is abysmally in short supply. This is somehow due to over dependence on fossil fuels which accounts for greater part of the power generation but with an unreliable supply chain. This study seeks to apply Split-Split plot experimental design as statistical tool to analyze factors that influence the calorific value of mangrove wood during combustion for electricity generation. The combustion process was carried out at the National Centre for Energy and Environment, University of Benin. Each of the wood samples was pulverized to enable easy combustion. Bomb calorimeter was used to carry out the test on the various pulverized wood samples. The calorific value of each sample was collected and recorded in three replications. The result of the study shows that the raw materials location has differential treatment effect on the calorific value of the raw material type employed. It was discovered that the differential treatment effect produced by the raw materials type is largely due to the location of the raw materials. The result obtained from the analysis also shows interaction between the raw materials location and the different raw material types to influence the calorific value of the white mangrove, red mangrove and rubber wood used in this study. Keywords: Energy, Electricity generation, Wood waste, Fossil fuel, Split-Split Plot.
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Biomass consists of organic materials that are plant or animal based, including but not limited to dedicated energy crops, agricultural crops and trees food, and fibre crops residues, aquatic plants, forestry and wood residues, agricultural wastes, bio-based segments of industrial and municipal waste, by products and other non-fossil organic materials. In view of this Benue State is end owed with rich natural and mineral resources which has placed the state in vintage position in the country as the nation's "Food Basket". The rich energy crops, agriculture crops and trees in the state provide a good platform for the government of Benue State that if utilized, will do away with the electricity deficit in the state. This study examines the Biomass potentials in the state and enumerates the local government areas in the state for the government to take advantage of.
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This article aims at providing a better understanding of the effect of electricity access onto labour market outcomes in Nigeria, a country which hosts the second largest population without access to electricity in the world after India, but which has received so far very little attention from the academic community. We assess, through a rigorous econometric analysis carried out employing probit, biprobit and propensity score matching, this impact on the proportion of employed working age components of a household. We consider both female and male employment as well as agricultural and non-agricultural employment separately, further disaggregating the effect between rural and urban households. Our results show that, once the possible endogeneity in the relationships under investigation is tackled, electricity access has indeed a relevant impact on particular labour market outcomes. Specifically, we show a consistent shift out of agricultural employment of around 7% and into non-agricultural employment of about 15%., with some evidence of a positive effect on overall labour participation. These findings show that the expansion of electricity access to households which are not yet connected to the grid could play a relevant role in both increasing labour market participation and in helping the transformation of the Nigerian economy away from agricultural activities.
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This study presents the viabilities for power generation in Nigeria through the utilization of the sun's energy. Solar-thermal and photovoltaic options were discussed. It highlights the basic science for the design and selection of com- ponents for successfully harnessing solar power. Requirements for solar panel placement and orientation were also high- lighted. It emphasizes that the knowledge and experience gained in solar energy as an abundant and convenient energy source, can play a role in steering the nation toward a permanent and sustainable development. The energy demand in Nigeria far outweighs the supply which is epileptic in nature. The acute electricity supply hinders the country's develop- ment notwithstanding the availability of vast natural resources in the country. Our ability to continue the trend for afford- able energy will be severely tested in the coming decades, as evidenced by the widening trade imbalance, collapse of big manufacturing companies, sharp increase in the cost of doing business just to mention but a few. It is the issue of utilizing the sun's silent, inexhaustible, and non-polluting resource for power generation in Nigeria that this work addresses; hence it is the long-range review of the energy problem.
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Energy is essential for development. No developing society can hope to achieve economic sustainability without adequate energy supplies. Virtually every aspect of economic and social activity demands energy. The unavailability of modern forms of energy to some two billion of the world’s population, and inadequate supplies to an estimated additional two billion people, is a major challenge to the achievement of the poverty, gender and health objectives of the United Nations Millennium Development Goals and the Plan of Implementation of the World Summit on Sustainable Development. At the same time, energy generation using fossil fuels is the principal source of greenhouse gas emissions that cause global warming. The mining and processing of fossil fuels can also endanger the lives of miners, cause severe land disruption and pollute land, air and waters. Furthermore, burning fossil fuels emits nitrogen and sulphuric oxides that are themselves toxic and are the precursors of urban smog and acid rain, while coal-burning power stations are responsible for mercury emissions that bio-accumulate in ecosystems, presenting a threat to human health as well as the environment. Providing the energy essential for development while minimising environmental hazards is one of the principal challenges in the 21st century.Energy efficiency offers perhaps the greatest potential to greatly reduce the amount of polluting energy needed to achieve current and future development targets. By eliminating waste, efficiency can often be accomplished at a profit or with a very short payback period of a year or two. Renewable energy, in the form of energy produced from solar, wind, sustainably managed hydro, geothermal and biomass resources, offers the potential to significantly displace the need for polluting fuels. These renewable resources are emphasised in the Plan of Implementation of the World Summit on Sustainable Development. This chapter therefore contends that, while much has been written about the science, technology and policies for promoting energy efficiency and renewable energy, little has been written about the legislative and regulatory options necessary to implement these technologies and policies that make a reality in practice. By promoting clean and efficient energy use at the legislative and regulatory levels, governments can ensure that all stakeholders have the opportunity and incentives to adopt new practices that will help to mitigate climate change and reduce pollution while keeping on the path of economic and social development. It is against this background that this chapter seeks to realise the following objectives: 1) To underscore the importance of efficient and renewable energy to produce electricity for the mitigation of climate change and sustainable development in Nigeria; 2) To provide an overview of the policy, legislative and regulatory measures available to promote energy efficiency and renewable energy as well as climate; change mitigation and adaptation in Nigeria; 3) To highlight the challenges and strategies to overcome the barriers to use and regulation of renewable and efficient energy for electricity in Nigeria.
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Abstract Access to clean and stable electricity is essential in actualizing Nigeria's quest for joining the league of twenty most industrious nations by the year 2020 (vision 20: 2020). No country can develop and sustain it development without having a minimum access to electricity for it larger percentage of its population. At present, Nigeria depends petroleum reserves and its aged hydro plant instalments for electricity generation to feed the 40% of its total population that are connected to the national grid. This paper summarizes literature ...
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C. M. Nkiruka, Unbundling and privatization of the Nigerian electricity sector: reality or myth? Centre for Energy, Petroleum and Mineral Law Policy, University of Dundee, UK, pp: 6, 2011.
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R. Wonodi, Alp seminar series-transforming the Nigeria power sector, Bulk trader in the power sector transformation, Nigeria Bulk Electricity trading Plc, 28 Feb. 2013, pp:2-7.