Nigeria Investing In Renewables As Oil Prices Surge

National Economy

The population of the Federal Republic of Nigeria is approximately 216.73 million people[1]. In 2020, 55.4% of the people in this West African country had access to electricity[2].

In 2019, Nigeria’s economy was ranked 30th in gross domestic product (GDP) in the world[3]. The country’s economy is dependent[4] on the export of crude oil, natural gas, scrap vessels, and special purpose ships.

Environment Policies

In 1979, Nigeria enacted the Associated Gas Reinjection Act, which set 1984 as the deadline for oil companies to stop flaring of natural gas in the country.

In 2016, Nigeria signed the Paris Climate Agreement[5], committing to an unconditional 20% reduction in greenhouse gas emission by 2030, compared to business-as usual levels.

In 2020, utilities used natural gas (77.0 %), renewable energy (21.0 %), coal (1.8 %), and oil (0.2 %) to generate electricity in Nigeria[6]. Hydropower is the dominant type of renewable energy used to generate electricity in Nigeria.

Recent renewable energy projects in Nigeria include:

  • 3,050 MW Hydropower Project – The China National Electric Engineering Company (CNEEC) is continuing work on the Mambilla hydropower project, which is located on the Dongo River, approximately 325 miles southeast of the nation’s capital, Abuja. The project is scheduled to be commissioned by 2030.
  • 700 MW Hydropower Project – The CNEEC is continuing work on the Zungeru hydropower project, which is located approximately 120 miles northwest of Abuja. The hydropower project is scheduled to be commissioned by year-end 2022.
  • 360 MW Solar Project – In July 2022, China Energy Engineering commenced work on a solar project, which is located approximately 225 miles southwest of Abuja. The project is forecast to be completed in 2024.
  • 200 MW Solar Project – Singaporean renewable energy company, B&S Power Holding is continuing work on a solar project at a site approximately 250 miles south of Abuja. The project is forecast to be commissioned in 2024.

Conclusions

Commercial oil was first discovered in Nigeria in 1956[7]. In 2021, Nigeria was the 6th largest oil[8] and 13th largest natural gas[9] exporting country in the world.

Oil is critical to Nigeria’s economy. In 2020, Nigeria exported U.S. $30 Billion in crude oil, U.S. $35.89 Billion in natural gas and U.S.$613 Million in refined petroleum.

Nigeria has significant undeveloped renewable energy resources, including hydropower, solar, onshore wind, offshore wined, and biomass. The country’s renewable energy resources could provide electricity in the nation.

On 24 February 2022, Russia invaded Ukraine, prompting in the United States, Canada, and the European Union to place embargos on Russian exports, including fossil fuels. As a result, the price for crude oil and liquified natural gas have both increased by over 50% from May 2021 to May 2022.

The rise in the global oil and natural gas prices has allowed Nigeria to accelerate the development of new renewable energy projects to provide electricity to the rural regions of the nation.

Nigeria is investing in renewable energy projects across the country as oil prices surge.

Jack Kerfoot

Website – “Our Energy Conundrum”

www.jack kerfoot.com

 

Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio and television stations from New York City to Los Angeles on numerous energy related topics.

[1] Nigeria Population (2021) –  July 31, 20222www.worldometers.info

[2] World Bank, “Access To Electricity (% Population) – Nigeria

[3] Gross Domestic Product By Country 2021 – Worldometer

[4] The Observatory of Economic Complexity (OEC) – Nigeria

[5] Carbon Brief “Paris 2015: Tracking Country Climate Pledges”

[6] Our World In Data, Nigeria: Country Profile by Hanna Ritchie and Max Roser

[7] Organization of Petroleum Exporting Countries (OPEC) – Nigeria

[8] KANOEMA, World Data Atlas – Exports of Crude Oil, Including Condensate

[9] CIA World Factbook

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