Ending Electricity Poverty In Nigeria

Abstract

Nigeria, a country of 162.5 million people and the apparent giant of Africa, is also one of the world’s most under electrified countries. As of 2010, Nigeria had an operational installed generation capacity of 4 Gw, an unimaginably low number for a country of that size. Developed nation standards suggest a country have 1Gw of power for every million inhabitants. Accordingly, if Nigeria were a developed country, it would require at least 160 Gw of installed capacity to ensure a productive nation. In reality, Nigeria is not a developed country and should not be held to the same standards; however, the range between 4 Gw and 160Gw represents the size of the nation’s energy supply gap, a problem, but also a tantalizing opportunity. Ending Nigeria’s energy poverty could result in significant economic development, not only in Nigeria, but also in the rest of Africa, and eventually the around the world. This master’s project explores electricity poverty and its debilitating effects on economic development in Nigeria. The project will ultimately emphasize the linkage between electrification and economic development and state some soft conditions necessary for the former to take place. The project looks at Nigeria – bridging the supply demand gap. The overarching theme of this Masters Project is that there is a strong link between electrification and economic development. Accordingly, many of Nigeria’s economic development plans must consider or acknowledge the importance of the power sector. Nigerian’s are about 6 – 10 times richer than believed to be when considering the steep prices paid for inefficient forms of electrification and lighting. To end electricity poverty in Nigeria, the nation will have to navigate familiar obstacles such as institutional corruption, access to financing, and infrastructure challenges to name a few. Ending Electricity Poverty in Nigeria is very possible, but will surely take time.