Electricity stands as a cornerstone for socio-economic progress, especially within Nigeria, a pivotal economy and populous nation in Africa. The country’s inability to reliably generate and distribute electricity poses a significant risk to its Gross Domestic Product (GDP). Despite Nigeria’s geographical advantage of being in a sun-rich belt within Sub-Saharan Africa, it has yet to fully harness solar photovoltaic (PV) technology to address its energy needs.
More than 40% of the population remains disconnected from the national grid, while those who are connected endure frequent and prolonged power outages. Urban areas receive limited electricity access, leaving many households and industries underserved. In rural regions, reliance on traditional energy sources like charcoal and kerosene persists, with only a small fraction utilizing solar energy for specific applications such as water boreholes and lighting.
The disparity between Nigeria’s electricity demand and supply is staggering, estimated to exceed 76% as of 2016. Despite the potential of renewable energy, particularly solar power, stakeholders have largely overlooked its integration into the power sector to address this gap. While the importance of renewable energy, including solar power, is recognized, there is a notable absence of empirical research identifying specific barriers to its implementation in Nigeria.
Solar Energy Overview in Nigeria
Nigeria, situated on the Western coast of Africa along the Gulf of Guinea, covers an area of 923,768 km2, ranking as the 31st largest country globally. With a population of around 200 million people as of 2023, Nigeria holds the distinction of being the most populous black nation on the planet. Geographically, Nigeria is delineated by the river Niger and Benue, divided into six geopolitical zones, with Zones I, II, and III identified for their solar radiation potential.
The Electric Power Sector Reform Act of 2005 was passed to dismantle the Power Holding Company of Nigeria, aiming to modernize the power sector and diversify the energy mix by incorporating renewable sources. Consequently, numerous solar-based energy projects have been sanctioned, particularly targeting rural communities where electricity access is crucial. These initiatives are projected to contribute 15% of the country’s total power output by the year 2020.
The EPSRA facilitated collaborations between the private and public sectors, leading to the establishment of National Independent Power Projects (NIPP) and Integrated Power Producers (IPP), with the overarching goal of implementing the ‘Operation Light Up Rural Nigeria’ initiative.
Barriers for Solar Energy implementation in Nigeria
Despite the ample availability of solar energy resources in Nigeria, the adoption of solar energy has been gradually gaining recognition from both public and private sectors. However, various barriers impede the implementation of solar energy initiatives in the country, including technological, financial, political, and social perceptions.
Technological Barriers
a. Insufficient Technical Capacity
There is a notable deficiency in skilled personnel capable of adhering to standard procedures for installing and maintaining solar PV systems in Nigeria. This lack of expertise poses a risk of rejection from potential customers, as there is a requirement for both promoters and end-users to understand the functionality of solar energy technology. Despite the country’s potential for solar radiation, the market remains underdeveloped, with low utilization rates.
While the Power Sector Reform Act of 2005 represents progress towards diversifying the Nigerian power sector, there is a pressing need to accelerate energy strategies to achieve the Act’s objectives and enhance access to a varied energy mix. A significant portion (68%) of interviewees perceive that the prevalence of substandard and cheaper versions of solar energy products contributes to the technology’s poor acceptance.
b. Lack of Research and Development
The advancement and promotion of solar energy in Nigeria face a significant challenge due to inadequate research and development. The Energy Commission of Nigeria, in collaboration with five tertiary institutions, has established research centers focusing on various energy resources across different regions of the country. However, weather and climate conditions, particularly the extreme heat in the northern regions, can significantly impact the efficiency of solar panels and batteries. The effectiveness of solar panels can decrease by 10% to 25% due to high temperatures exceeding 25°C, while batteries require cooling mechanisms to maintain functionality. Consequently, initiatives are often hindered by adverse weather conditions and the lack of research and development in addressing these challenges.
c. Standard and Quality Control
The absence of standardization and quality control presents a significant constraint to the development and promotion of solar energy initiatives in Nigeria. This issue affects potential users, retailers, and promoters alike, as the market is flooded with substandard solar panels, batteries, and accessories. The proliferation of inferior products undermines trust and confidence among promoters and users, hindering market penetration, particularly in rural areas across the six geopolitical zones.
Financial Barriers
a. Financing of Solar Energy Projects
While solar energy itself is freely available from sunlight, the implementation and development of solar initiatives necessitate significant financial investment. The installation of solar PV systems requires substantial initial capital for purchasing panels and batteries, making it financially burdensome for low-income individuals in Nigeria, particularly those residing in rural areas. Access to financial resources, capital, credit facilities, subsidized import duties, and the high investment risks associated with solar projects are major challenges.
b. Low Economic Utilization
Private companies now have the capacity to generate and distribute electricity from energy sources, including solar, up to 100 kW for mini-grids and less than 1MW for medium-scale operations. However, rural dwellers, who are often small-scale farmers and herders, typically have low incomes that prevent them from affording the deployment of solar energy initiatives. Additionally, solar energy products in Nigeria often lack accurate cost assessments, valuation, appropriate incentives, and disclosures of risks and impacts to end-users. This lack of economic viability further hinders the widespread adoption of solar energy solutions.
Policies and Institutional Barriers
a. Policy Challenges
The advancement of solar energy in Nigeria faces hurdles stemming from policies characterized by a lack of long-term planning and vision. There’s a notable absence of clarity regarding the mission driving the power sector, as well as ambiguity in the tariff bidding process and the absence of bankable Power Purchase Agreements (PPA) for potential investors.
Additionally, difficulties in land acquisition for mini solar grid projects pose infrastructure-related barriers. The government’s lack of strategic policies fails to attract both national and international investors and promoters to engage in solar energy initiatives. Without government policies effectively driving the economy, the full potential for solar energy implementation remains unrealized.
b. Lack of Political Will and Legislative Framework
Despite Nigeria’s renewable energy potential, the absence of policies promoting good governance, political determination, and a robust legislative framework to actualize these potentials is evident. Consequently, Nigeria continues to deal with unstable electricity supply for both household and industrial use.
c. Legal and Regulatory Challenges
The absence of policies and regulations specifically tailored for solar energy development can impede its adoption. Insufficient regulations for land acquisition permits for solar farm siting, community engagement protocols, and negotiations with local communities further complicate matters. To foster the growth of solar energy initiatives in Nigeria and other Sub-Saharan African nations, clear policies, procedures, and predictable investment missions need to be established. Moreover, the lack of supportive regulatory measures, such as standardized codes of practice for the power sector, risks economic inefficiency.
Solar energy development in Nigeria is confronted by legal, procedural, and environmental obstacles, slowing down the deployment and adoption of initiatives essential for meeting Sustainable Development Goal 7 and Vision 2020 and 2030 targets.
Social Barriers
a. Sociocultural Perception
In Nigeria, a country comprised of over 350 ethnic groups, with the Hausa, Igbo, and Yoruba being the predominant ones, strong ethnic beliefs, cultural traditions, tribal values, religious practices, and gender dynamics significantly influence the perception of solar energy initiatives at various societal levels. Consequently, acceptance levels are hindered by entrenched social beliefs.
These barriers have led to financial losses for distribution companies in Nigeria, as community access restrictions impede financial collections. Technical personnel and supervisors from the power sector often face challenges accessing households for surveys, assessments, inspections, and meter installations. The socio-cultural barriers thereby impede communities from harnessing the socio-economic benefits of solar energy initiatives in the country.
b. Low Awareness
The implementation of solar energy initiatives in Nigeria is greatly hampered by a lack of awareness campaigns. This barrier is closely tied to individuals’ mindsets, values, behaviors, perceptions, levels of education, and insufficient sensitization about the benefits of solar energy for end-users and promoters. Rural communities are particularly affected due to their lack of access to the grid and limited alternative energy options. Consequently, small-scale businesses suffer setbacks, contributing to a rise in unemployment rates. Economic opportunities within local communities diminish, and resources that could otherwise contribute to economic development remain underutilized.
