Nigeria has the potential to earn N7tn from mini-grids, grid and solar power if properly harnessed, according to a new report.
The National Association of Petroleum Explorationists’ document on ‘Energy Security & Transition Strategies Opportunities & Challenges in Nigeria’ obtained by The PUNCH projected that there are between N4tn and N7tn ($10-$16bn) revenue streams of income in providing electrification for the unelectrified people in Nigeria, if the Federal Government can latch on the grid, mini-grid and solar home system sector.
Nigeria currently has the lowest access to electricity globally, with about 92 million persons out of over 200 million lacking access to power, according to the Energy Progress Report 2022 released by the International Energy Agency, United Nations Statistics Division, the World Bank, and the World Health Organisation.
The document stated that 146 million people do not have access to clean cooking in Nigeria, of which 96 million cannot afford clean cooking.
NAPE explained that the 96 million that cannot afford clean cooking represents 66 per cent of the total population that do not have access to clean cooking.
“African nations need to collectively continue to prioritise convenience, affordability, and reliability to reach a quality of life enjoyed by the industrialised world, which has powered its economic growth and achieved prosperity using hydrocarbons. Access to energy is crucial not only for the attainment of health and education outcomes, but also for reducing the cost of doing business and for unlocking economic potential and creating jobs. With Worldwide pursuit for energy security, Africa must achieve sustainable energy security within the resources available,” the association noted, adding that fossil fuels will remain an important part of the overall energy mix.
Africa is a continent richly endowed with natural resources, with almost half of its 55 countries known to have proven natural gas reserves.
Across the continent, natural gas reserves amount to more than 800 trillion cubic feet, with energy firm British Petroleum predicting that the production of natural gas in the continent will expand by 80 per cent by 2035.
Nigeria currently houses the continent’s largest natural gas reserves, circa 206 trillion cubic feet (circa 63.6TCF/ 31 per cent in the shallow offshore assets).
And according to Statistica, “Natural gas reserves in Africa will last another 55.7 years (reserves/production ratio) before being depleted, considering that the present level of production is maintained.”