Oil & Gas Exports Fund Nigeria’s Renewable Energy Projects

Country Overview

The West African country of the Federal Republic of Nigeria is bordered by Benin, Niger, Chad, Cameron, and the Gulf of Guinea. The population of Nigeria is approximately 226.56 million people.

In 2022, Nigeria’s economy was ranked 30th in gross domestic product (GDP) in the world. The country’s economy is dependent on the export of crude oil, natural gas, special purpose ships, cocoa beans, refined petroleum, and cocoa shells.

Environmental  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, committing to an unconditional 20% reduction in greenhouse gas emission by 2030, compared to business-as usual levels.

Power Generation Capabilities

In 2021, 59.5% of the people in Nigeria had access to electricity. In 2022, utilities used natural gas (70.4%), renewable energy (27.6%), coal (1,8%), and refined petroleum (0.2%) to generate electricity in Nigeria. 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 – In May 2023, CNEEC commissioned the Zungeru hydropower project, which is located approximately 120 miles northwest of Abuja.
  • 360 MW Solar Project – China Energy Engineering is continuing work on a solar project, which is located approximately 225 miles southwest of Abuja. The project is forecast to be completed by year-end 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 by year-end 2024.

Conclusions

Commercial oil was first discovered in Nigeria in 1956. In 2022, Nigeria was the 9th largest crude oil and 20th largest natural gas exporting country in the world.

Oil is critical to Nigeria’s economy. In 2021, Nigeria exported U.S. $41.8 Billion in crude oil, U.S. $8.52 Billion in natural gas, and U.S.$667 Million in refined petroleum.

Nigeria has significant undeveloped renewable energy resources, including hydropower, solar, onshore wind, offshore wined, and biomass. Nigeria’s renewable energy resources have the potential to replace all the nation’s current capacity from the natural gas, oil, and coal fueled power plants.

On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices 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.

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, podcast, and television stations from New York City to Los Angeles on a diverse range of energy issues.

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