Nigeria has been faced with numerous obstacles in its bid to provide and supply power reliably, drop greenhouse gas discharges, and keep energy affordable to consumers. The availability of electricity in the country has been worsening over the years. This situation has translated to the country being unable to meet its electricity demand, primarily due to its policies, regulations, and operations management. The impact on the economy by the inability to provide adequate and reliable energy has been the key indicator.
The lack of adequate power supply in Nigeria has led to the country’s commercial and industrial sectors becoming dependent on self-generated power, especially by using petrol and diesel generators, which accounts for almost half of all electricity used. The shortage of reliable power supply in the country has been a significant hindrance to its economy’s growth.
There is a need by the country to be able to diversify its economy from oil and gas revenues because this market is unstable. If the private sector, whose demand for energy is high, would invest more in generating their power, there would be increased pollution and increased greenhouse emissions.
A survey carried out, respondents from the commercial sector who runs a male grooming salon discussed the impacts on electricity performance not being reliable. He highlighted that he was unable to operate air-conditioners for an extended period, and as a result, the heat-affected his business productivity. Like education and entertainment, other sectors have also been unfavorably affected by the country’s inability to have an adequate power supply. The unreliable power supply also has environmental costs. The use of diesel and petrol run generators has increased pollution, negatively affecting climate change and human health.
The country’s electrification initiative has been leaning mostly on expanding a centralized power system that would be able to sustain the urban demand for energy. Extension of centralized systems’ electricity connectivity may turn out to be costly, especially in need to meet the demand of the new urban population.
The solution that may be applicable and practical for the country’s electricity access is centralized and decentralized power systems. The country’s electricity market also needs to be modeled to allow the room to trade energy. The remodeling of the electricity market means there would be a need for autonomous energy products to sell excess power to the household.