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Nigerian Member Committee

The Nigeria National Committee aims to promote sustainable energy development in Nigeria, as a part of the World Energy Council’s energy vision. As a member of the World Energy Council network, the organisation is committed to representing the Nigerian perspective within national, regional and global energy debates. The committee includes a variety of members to ensure that the diverse energy interests of Nigeria are appropriately represented. Members of the committee are invited to attend high-level events, participate in energy-focused study groups, contribute to technical research and be a part of the global energy dialogue.

Energy in Nigeria

nigeria, critical uncertainties, action priorities

Comparing 2019 and 2020 results, Nigerian energy leaders have profiled a revised energy landscape with Energy Access, Renewable Energies and Trade Barriers seen with higher uncertainty and impact. Hydro and LNG remain Action Priorities and are joined by new Energy Policies and Macroeconomic issues, Energy Subsidies, Exchange Rates and Electricity Prices.

Energy Access is seen as having more impact and becomes a Critical Uncertainty. Nigeria has seen an improvement in per capita income, but an estimated 40% of the population still lacks access to electricity. Installed generation capacity is above 12GW but only 4.5GW are available due to inadequate gas supplies and the condition of some generating plants. This results in massive load-shedding throughout the country.

Renewable Energies move from the Actions to the Uncertainties section. The Nigerian government has devised policies covering a range of renewable options and a more flexible market design. It plans to expand the grid and green mini grids with financial support from development banks. The government has recently introduced the Energising Education Programme and Energising Markets Initiative through which 37 universities and 4 markets are being powered with off-grid plants (mostly solar photovoltaics).

Trade Barriers are also seen with higher uncertainty and impact. Nigeria is a significant oil producer and relies on oil exports for a large proportion of its external trade volumes. A onetime exporter of crude oil to the US, Nigerian exports have fallen in recent years as US oil production has soared. The economy has suffered from lower oil prices and production outages due to militant activity in the past three years. Nigeria is selling more of its crude to the fast-growing Asian market.

Hydro is seen as the most impactful of the Action Priorities. Like other sub-Saharan African countries, Nigeria relies on hydropower to support its gas-fired power stations. The nation’s electricity supply will be boosted significantly when the 3GW Mambilla Hydropower project is completed.

LNG remains an Action Priority. As an LNG exporter, Nigeria is now having to compete with new supply coming on to the market. The Nigeria LNG consortium is adding a seventh train to its facility in Bonny Island and building supporting infrastructure to increase capacity and its share in the global gas market share, The project is due to be completed by 2024.

Energy Subsidies are seen with higher impact. Although Nigeria is a large oil producer and exporter, it does not have enough refining capacity and needs to import oil products. Because domestic prices are subsidised, this creates a burden on the treasury. Attempts by the government to ease subsidies led to strikes and to a much smaller adjustment. The 650,000 barrel per day Dangote mega refinery is due to come online in 2022. This is expected to help alleviate fuel shortages while easing reliance on imports. The government has also issued licences to private groups to install modular refineries. Output from these units, due to come online in 2020, are also expected to contribute to alleviating fuel shortages before Dangote is operational.

Energy leaders in Nigeria expect that with the adequate policies and business strategies, the critical uncertainties affecting Nigeria will gradually lose importance and become weak signals in the coming years. It is also anticipated that the priority areas of terrorism, corruption and renewable energy will receive the necessary attention from energy leaders and tackling these issues will contribute to building a more resilient energy system. 

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