Mohammed Shosanya
Nigerians spend N16.5trillion annually on fuelling and servicing of generators,Minister of Power, Adebayo Adelabu,has said.
He disclosed this at the ongoing NOG Energy Week in Abuja,on Tuesday.
His disclosure was based on a research carried out for the year 2023,which he said,covered expenditure on fuelling and service of generators.
He added:“What Nigerians spend on self-generation of power – on fuelling and servicing their generators- is N16.5 trillion according to a research that was carried out in 2023. Looking at this you will see that What Band A customers pay is still cheaper compared to this, despite having 24 hours uninterrupted supply”.
The Minister,who disclosed that the power sector in Nigeria consumes the largest share of the country’s domestic gas supply,advocated the need for increased investment in Nigeria’s gas development to unlock the full potential of the power sector and achieve the Nigeria Energy Transition Plan.
He said,in line with the Nigeria Energy Transition Plan vision 30:30, which seeks to achieve 30GW by the year 2030, the country’s energy mix is projected to be 70% thermal source and 30% renewable source.
According to him,the power sector would require over five times what the industry currently utilises from the domestic gas market to achieve the nation’s 70% thermal energy target with gas-powered generation.
Besides,he said additional investments would be needed to increase the country’s gas production to achieve this level of gas supply to the power sector without compromising the export obligations.
He implored investors to consider the investment in the further development of gas production in the country, especially on the nation’s abundant unexploited Non-Associated Gas reserves.
He also urged investors to consider the significant benefits of investing in renewable energy projects in Nigeria to enable the country achieve its renewable energy target.
He said:”Our country boasts abundant resources, particularly solar, wind, and hydro energy, providing a remarkable opportunity for sustainable growth. The renewable energy market has grown tremendously in the last decade, with over $1 billion leveraged by Multilateral Development Banks.
“By channeling investments into these renewable sources, we can effectively meet our carbon emission targets while playing a crucial role in combating climate change.
“As demonstrated by our recently completed $550 million Nigeria Electrification Project, investing in renewable energy helps reduce carbon emissions, enhance energy security, and support economic development.
“Additionally, to complement the NEP, the $750 million DARES project would provide electricity to 2.5 million people in Nigeria by deploying solar home systems and mini-grids. These investments will propel Nigeria toward achieving its desired energy mix and transition targets”.
He reaffirmed the country’s unwavering commitment to achieving net zero emissions by 2060.
