The energy sector in Nigeria

For a while now we have been discoursing the energy sector in most part of the world, particularly most giant economically driven countries.

I took some time to go through the Nigerian energy sector and tried to relate to it's management and the ups and down of the sector compared to the other energy giant countries.

Having done some little research, i realise that the energy sector is a topic in a maroon state waiting to be exposed and and exploded.

Looking at the rich natural resources Nigeria has, the energy sector is on it's way to experience the freedom of success at it's peak.

Comments on this topic are highly welcome.


Hamid Farzam's picture

Until electric energy is not considered as a market good by governments, and deregulation in this industry have not occurred and price cap is not removed it will be in maroon state as you stated.
unfortunately, in most countries, specially oil rich countries, the price is mainly subsidized, which of course due to stabilizing the prices and avoiding the social impacts, is somehow considered as a need by governments, but what is very interesting is subsidies the price of electric energy for industries which consumes a huge electric energy, like steel, Aluminum,, and then exporting the products of this kind of products, and considered it as a good trade with high interest, in where if the actual international price of electric energy for that kind of industry is considered it won't be economical to export such products, All of this kinda issues, and ease of use of this kind of energy, causes a rapid yearly increase in demand for electricity which causes the govornoments,very soon freed and deregulate this industry, and it is very reasonable at least for some big industrial consumers to use the electric energy with its real price!!!
Or encourage of such consumers or other residential consumers to shift their consumption to low demand hours by a price model to succeed the peak demand

By Hamid Farzam 07/07/2007
Olufemi Odunjo's picture

Nigeria is rich but the energy sector seems not to have been adequately represented in the monetary allocation some years back such that enough fund was not allocated to this very important sector of the economy.
The last government of Olusegun Obasanjo started late as substantial amount of money was dedicated to building power stations. Majority of these are still under construction while some are yet to commence.
Most energy sources will perform well in Nigeria and the Nigerian Engineers should be given the opportunity to research or buy technology involving solar, photovoltaic, wind, wave, etc apart from the currently popular gas turbines and steam turbines. Diesel generators are installed in nearly if not all manufacturing industries in Nigeria because the public power supply is just not adequate and regular. The sector has a bright future if the new program is allowed to mature and new areas of energy development is encouraged by the present administration.

By Olufemi Odunjo 12/07/2007
Shah Haider's picture
  1. First of all we all are to understand that Energy sector is the top most priority item in the world.
  2. A Masterplan or Long term planning is to be corectly prepared.
  3. Its to be started from the bottom, that is requirements, future expansion, present capacity, pricing (and also economic pricing) etc to be prepared.
  4. Various sectors of Energy like Electricity (again Grid supply, Renewable etc),Gas, Oil etc are to be judiciously considered, its reserve, use etc.
  5. Experts with intigrity are to be involved and preferably a Committee be formed for Long term planning with experts from all sectors.
  6. As Country's requirement changes with time, so its to be reviewed every alternate.
  7. Pricing for various Energy productsw should be cost effective.
  8. But above all, Energy efficiency, Energy management, Energy auditing all are to be effectively incorporated. Today we cannot afford any misuse of Energy.
  9. There are many publications on these topics in Internet.
  10. Again this sector should be curruption free. People involved should be well paid.
  11. More informations available if requested.
By Shah Haider 13/07/2007
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