Sustainable Energy Approach to addressing Power Grid Crisis in Nigeria

Guess everyone has lost count: But Nigeria’s national grid has collapsed eleven times this year, with recent incidents leaving millions in darkness for days and costing the economy billions in lost productivity. This persistent grid instability points to one conclusion: the power sector needs a complete overhaul, grounded in modernized infrastructure, diversified energy sources, and a national commitment to sustainability. Despite Nigeria’s vast natural resources, including natural gas reserves, significant solar energy potential, and an expansive river network capable of supporting hydropower, the energy sector has struggled to meet the demands of the nation. To change course, President Bola Tinubu and Minister of Power Adebayo Adelabu must prioritize transformational reform and action that can stabilize the grid, ensure consistent power delivery, and unlock the economic potential of a reliably electrified Nigeria.

The current state of the national grid has created a cycle of power outages that hamper businesses, households, and essential services across Nigeria. In October alone, the grid suffered multiple collapses, prompting widespread frustration and exposing the vulnerability of the nation’s power infrastructure. On October 19, 2024, the grid collapsed for the eighth time this year, with three breakdowns occurring within a single week. Only two days later, another collapse highlighted just how precarious the system has become.

According to reports from the Nigerian Electricity Regulatory Commission (NERC), there were around 93 grid collapses between 2015 and 2023, with incidents continuing under the current administration. While some reductions in disturbances were noted in recent years, the recurrence of these outages reveals the chronic inadequacy of Nigeria’s grid infrastructure. These disruptions come at an enormous cost: each grid collapse results in financial losses for businesses, decreased productivity, increased operational costs, and widespread inconvenience for citizens. It is clear that these repeated failures of the grid are not just technical challenges; they are significant economic setbacks affecting nearly every sector in Nigeria.

Nigeria’s installed power generation capacity is roughly 13,000 megawatts, but due to inefficiencies in the transmission and distribution networks, the actual output fluctuates between 4,000 to 5,000 megawatts. For a nation of over 200 million people, this capacity falls far short of demand. In comparison, South Africa, with a population of around 60 million, has an installed capacity of approximately 58,000 megawatts. Similarly, Egypt, with a population of just over 100 million, has an installed capacity of around 58,000 megawatts. This stark disparity reveals how Nigeria lags in electricity provision despite its vast resource base.

Investments in the Nigerian power sector have been significant, yet grid issues persist. Over the past decade, Nigeria has received 10 loans totaling $4.36 billion from the World Bank to fund power sector improvements. However, inefficiency, outdated infrastructure, and a lack of accountability have undermined these efforts, leaving the nation’s energy future uncertain. To achieve a stable power supply, Nigeria needs to not only address its infrastructure challenges but also adopt innovative and sustainable energy solutions that can diversify the power mix and make energy delivery more resilient.

To improve reliability, Nigeria’s power strategy must include decentralizing the national grid. This would entail developing smaller, regionally focused grids, often referred to as mini-grids, to better serve local energy demands. By reducing reliance on a centralized national grid, these mini-grids can limit the scale of outages and reduce the duration of disruptions when they do occur. Many African nations have successfully implemented decentralized power systems, and Nigeria can learn from these examples.

Incorporating renewable energy sources is essential to building a resilient and sustainable energy future. Nigeria’s geographic location makes it ideal for solar energy generation, particularly in the northern regions where solar irradiance levels are high year-round. By investing in solar photovoltaic (PV) technology and incentivizing the private sector to support solar projects, the government can leverage this abundant resource to diversify the power supply. Additionally, hydropower presents another untapped potential. Rivers like the Niger and Benue offer immense potential for power generation, and upgrading existing hydropower facilities could make a meaningful contribution to the energy mix.

Corporate Social Responsibility (CSR) initiatives also have a role to play in Nigeria’s power solution. Companies across various sectors can support the development of renewable mini-grids or solar-powered installations in communities where they operate. Such CSR-driven projects not only benefit the companies involved by reducing operational disruptions but also provide power security to local communities, enhancing both economic stability and social wellbeing. Companies that invest in these initiatives position themselves as leaders in sustainability while demonstrating a commitment to Nigeria’s development. Champion Breweries, for example, could sponsor solar-powered installations to benefit Akwa Ibom communities, positioning itself as a key contributor to local economic resilience.

The Federal Government needs to prioritize infrastructure upgrades for the national grid and take decisive action to replace outdated substations, transformers, and transmission lines that are decades old. The Transmission Company of Nigeria (TCN) has already acknowledged that grid collapses will persist until the infrastructure is overhauled, yet the necessary funding and expertise have not been mobilized. To make progress, a blend of public and private investments is essential, with oversight to ensure that funds are applied effectively and transparently.

To build a stable, reliable, and future-ready power sector, Nigeria must address its infrastructure deficits and prioritize renewable energy projects. Decentralization and renewable energy are both crucial to ensuring the grid is resilient enough to withstand demand spikes and outages. This approach not only meets immediate power needs but also aligns with global sustainability goals, helping Nigeria reduce its carbon footprint while setting a foundation for long-term growth.

The solution has become clear – going the sustainable energy way! By promoting CSR-driven renewable energy initiatives, Nigeria can harness the power of its resources to benefit citizens and communities. It’s time for Nigeria to move beyond temporary solutions and address the root issues in the power sector with urgency.

With bold reforms and a commitment to sustainable energy, Nigeria can build an energy-secure future that propels economic growth and ensures that darkness becomes a thing of the past.