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As a result of the frequent collapse of national grid and the comatose grid electricity supply, the Renewable Energy Association of Nigeria (REAN) has said that such breakdowns cost Nigeria over $25 billion in economic loss annually.
Also, it is estimated that businesses are spending over $14 billion yearly on private fossil fuel generators.
This, it said, are very expensive, inducing unemployment, health-threatening and environmental pollution.
REAN came to this conclusion after a stakeholders’ conference and discussion on consumer financing in Lagos.
In a communique, REAN disclosed that Nigeria has over 57.7 per cent of its population in the informal sector.
“Nigerians’ informal sector classified as micro, small and medium enterprises (MSMEs) make up 65 per cent ofthe country’s Gross Domestic Products (GDP), 80.4 per cent of employees are in the informal sector and 98 per cent of informal businesses pay taxes but to non-state recognised actors.
“Most of the MSMEs identify unreliable electricity as a major challenge to their businesses and are willing to pay for a switch to renewable energy with the right incentive and product guarantee” it said.
The association further noted that the problem can be ameliorated with the right energy mix and actual actions on policies.
“This can be bridged and even improved upon with the right energy mix, actual actions on policies, and an investment-friendly environment that ensures improved capacity for local manufacturing and assembling of clean renewable energy technologies and advancing research in other emerging energy sources” REAN, explained.
According to the association, about 47 per cent of Nigerians lack access to grid electricity and Nigeria has an unmet energy demand of over 20,000 megawatts (MW).
“The challenges confronting the Nigerian power sector are well documented, with about 47 per cent of Nigerians lacking access to grid electricity, and those who do have access face regular power outages. We have an unmet energy demand of over
20,000 megawatts (MW) and this has compromised our achievement of the Sustainable Development Goals (SDGs).
“However, within and behind these challenges are enormous opportunities and gains from economic to social and environmental profits.
Nigeria is endowed with large oil, gas, hydro and solar resources, and it has the potential to generate 12,522 MW of electric power from existing plants” it said.
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