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The Need For Shift To Clean Energy Sources In Nigeria

By Yemi Olakitan

Renewable energy will help Nigeria fulfill its energy demands, renewable energy can drive job creation and sustainable economic growth while advancing global climate and sustainable development goals.

There are many steps that must be taken in order to make this vision a reality, including financial, regulatory, and policy-related ones that would set Nigeria up for future transformation. It remains to be seen wether Nigeria will see the task through.

Just seven stations in the 26.2km stretch between Abuja’s City Gate and the airport intersection sold Petrol Motor Spirit (PMS) in 2015. This number triples to 15 in 2023, indicating a 260% increase in the post-Paris Agreement era.

A critical thought is prompted by the striking disparity between local energy policy activities and discussions about global sustainability: Is Nigeria really making progress in line with its talk about sustainability? What can we learn from this?

By reducing its carbon emissions by 2030, Nigeria has committed to a near-term emission abatement strategy known as the Nationally Determined Contribution (NDC).

Nigeria is obliged to “prepare, communicate and maintain” successive nationally determined contributions (NDCs) that it expects to achieve as a signatory to the Paris Agreement (Article 4.2). In 2015, Nigeria made public its Nationally Determined Contribution (NDC).

Nigeria aimed to reduce its emissions by 20% under the “Unconditional NDC” in the 2015 NDC, provided that no outside assistance was obtained. Nigeria, however, promised to reduce its emissions by 45% below its business as usual by 2030 with the help of foreign assistance.

Nigeria boosted its conditional contribution and stepped up its aim in the amended NDC. Nigeria’s revised NDC, therefore, calls for a 47% commitment that is contingent on foreign assistance and has an unconditional contribution of 20% less than business as usual by 2030.

In light of slower-than-anticipated economic growth, committing to this degree of climate ambition is a considerable improvement because it will lead to significantly lower absolute GHG emissions than those reported in the 2015 NDC.

The extent of the emissions reductions is in line with a global 1.5°C scenario, with a 47% conditional contribution of about 100 MtCO2e below current (2018) levels.

In accordance with Article 4.19 of the Paris Agreement, the Nigerian government has devised the LT-LEDS strategy in an effort to reduce its emissions to net zero by 2060.

An economy-wide decarbonization strategy, encompassing the energy and non-energy sectors, was taken into consideration in the LT-LEDS.

Energy transition refers to the worldwide energy industry’s move away from fossil fuel-based energy production and consumption systems, such as those based on coal, oil, and natural gas, and toward renewable energy sources like solar, wind, and lithium-ion batteries.

Nigeria’s pledge to achieve net zero by 2060 at COP26 in Glasgow was based on the development of her Energy Transition Plan (ETP) in 2021 with assistance from the COP26 Energy Transition Council (ETC).

Since then, the Federal Executive Council of the Nigerian Government has approved the idea. The ETP is a plan designed to investigate Nigeria’s path toward net zero, with an emphasis on the switch to renewable energy. The ETP investigated these three scenarios:

NDC-guided scenario that incorporates ongoing national programs with decarbonization benefits, and a baseline scenario that is based on the current macroeconomic development route without any decarbonization effort.

The NDC 2015 was employed, along with a net zero 2050 scenario that prioritizes electrification and the shift to renewable energy sources.

After modeling each scenario up to 2050, more research was conducted to investigate how expenses would vary or spread out if the net zero target date was moved to 2060. Nevertheless, no 2060 pathway was modeled.

The ETP has high goals for renewable energy. For instance, 200GW of solar energy would be needed to achieve net-zero by 2050, or about 7-8GW annually.

To reach Net Zero by 2060, Nigeria will need to spend almost $1.9 trillion, $410 billion more than is expected to be spent normally.

The power sector will require the majority of the work: additional capital expenditures (CAPEX) are required to fund the $135 billion in T&D infrastructure as well as the $270 billion in power sector generation capacity.

The transition to 90% renewable energy sources results in significant fuel cost reductions of -$121 billion, which offsets some of the CAPEX increases.

The extra expenses needed to achieve a net zero economy equal roughly $10 billion a year.

In Nigeria, governmental players accounted for 77% of climate finance, with the private sector contributing only 23%.

The majority of climate money went toward energy systems, with solar energy—both on and off the grid—getting the lion’s share of that investment (66%).

The majority of Nigeria’s investment requirements are thought to be met by renewable energy funding, as the energy sector is the largest emitter (making up 60% of the country’s overall emissions).

In the 2017 budget, the Federal Ministry of Environment included funding for a Climate Public Expenditure and Institutional Review (CPEIR). But as of yet, no official evaluation of this kind has been conducted.

Nigeria has established a robust institutional structure pertaining to green bonds. $165.1 million in climate funding has been successfully catalyzed by the initiative.

Early in 2022, the Rural Electrification Agency (REA) put 100 isolation centers under power. Later that year, they intended to electrify 400 additional primary healthcare facilities.

In addition, REA electrified four isolation facilities in Lagos, Ogun, and Abuja as part of its COVID-19 response.

Off-grid clean energy solutions are also being used to power higher education institutions in order to tackle unstable electricity supplies and voltage fluctuations that have disrupted classes and harmed delicate research equipment.

REA has provided electricity to a number of federal universities around the nation via the Energizing Education Programme (EEP), including Alex Ekwueme Federal University in Ebonyi State and Bayero University in Kano.

As part of a Power Africa grant, Havenhill Synergy electrified 21 primary healthcare centers, 10 in Kwara State and 11 in Oyo State.

The University of Ibadan erected a 10 MW solar plant in 2019; the project was funded by the GIZ under the “Scaling Up University Electrification” Program.

In order to build solar backup systems to power nine emergency health centers in Ibadan, Lagos, Port Harcourt, and Enugu, All On awarded NGN 180 million to Auxano, Arnergy, GVE, and Lumos in 2020.

At the National Reference Laboratory of the National Center for Disease Control (NCDC) in Gaduwa, Abuja, a 260 kWp solar hybrid system was put into service by the Federal Ministry of Power in September 2020 with assistance from the German government and the European Union.

The takeaway is that these predicted energy finance needs pale in comparison to the $798 million monitored climate flows that were committed to energy systems in 2019/2020, especially when compared to the investment requirements in the ETP.

Absence of leadership and political will. Closing the Talk-Action Gap is critical, especially in offices that are ostensibly leading these changes, given the pervasive lack of political and leadership will and the numerous conferences and workshops that produce little real change.

The Hyundai Kona, manufactured by Stallion Motors, was the first locally made electric car introduced in Nigeria in 2021.

The National Automotive Industry Design and Development Council (NADDC) is launching a pilot program to install 100 solar-powered electric vehicle charging stations throughout Nigeria in collaboration with the Stallion Group and other stakeholders.

The first electric car in Nigeria, the Kia Soul EV, was unveiled by Kia Nigeria in 2015.

The Jet Mover Electric Vehicle, which Jet Systems, an indigenous manufacturer of electric cars, bills as a more affordable and environmentally friendly option than internal combustion engines (ICE) vehicles, is upending the passenger minibus market.

There are no infrastructures for charging. Absence of charging facilities. Insufficient technicians to maintain electric cars
Insufficient maintenance facilities and elevated maintenance expenses. Epileptics supply the electricity. There is little battery production. insecurity and a deficiency in government policy. Issues with battery longevity and strength in relation to gasoline engines.

Political Will: In order to encourage the adoption of new technology, governments must create a supportive legislative framework.

Research: Examine problems with consumer demand and create intelligent charging strategies.

Infrastructure Development: Give the construction of a charging infrastructure top priority.

Policy execution: Accelerate the Nigeria National Action Plan for EV development’s execution, making sure it includes plans for long-term investments from all parties involved.

The environmental problem of cleaning up horse feces was one that New York City faced in 1900 since horse-drawn carts were so widely used.

With the introduction of fossil fuel-powered cars, this scenario underwent a significant transformation and is currently moving toward the adoption of electric vehicles. There are 25,075 EVs in New York City today, or around 1% of all registered cars.

International automakers have declared their goals for producing electrified cars.

Mercedes declared that by the end of the decade, it will manufacture only electric vehicles.(Source: ) Volkswagen declared their intention to go all electric.

It specifically established targets for 55% of EV sales in North America and 80% of EV sales in Europe by 2030.

Volvo wants to sell 50% of its cars globally by 2025—the remainder being hybrids—all electric vehicles. Every vehicle it sells ought to be entirely electric by 2030.

Historical changes in Nigerian car types also provide a prism through which to examine the coming global transition to environmentally friendly transportation.

In Nigeria, the Volkswagen Bettle, Vauxhall, Peugeot 403, and Peugeot 404 were the most significant automobiles on the road by 1970. They have phased out as of today. This raises an important query: What are the plans for our SUVs in the next years?

Close the Talk-Action Gap: Make sure that actionable plans and policy promises are in line with one other.

Redirect Public Sector Financing: Allocate funds to the realization of energy transition plans and NDCs.

Promote the Private Sector: Make it easier and more profitable for the private sector to participate in renewable energy initiatives.

Obtain Foreign Funding: Assist professionals and interested parties who are proficient in navigating global funding channels.

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