The cost of energy Africa’s transition

Advancing the energy transition in Nigeria is crucial for the country's development and to increase access to electricity, especially in rural areas. Nigeria currently has about 56% electricity access, with greater ratios in urban areas and lower ratios in rural areas. However, this access is based on connections rather than availability. The country is undergoing reforms in the electricity sector to improve availability and access to electricity for its citizens. Renewable energy sources like solar, wind, and hydro have the potential to significantly increase energy access in Nigeria. Solar energy, in particular, is abundant across the country and the technology is becoming more affordable. Investments in human resources, skills, knowledge, and financial investments are needed to scale up renewable energy technologies. The cost of renewables has dropped significantly in the past decade, making it more accessible for investments. Apart from financial investments, Nigeria also needs political will and partnerships to unlock its energy potential. Energy is derived from natural resources and requires processing to become usable electricity for consumers and industries. This transition from resource to final energy is a significant challenge that Nigeria must overcome to meet its energy needs. The government of Nigeria has made efforts to create an investor-friendly environment by providing financial incentives, one-stop shop services for registration, and reducing barriers for investors. The government's focus on diversifying the economy away from oil and gas is evident in the growing non-oil revenues. VAT, import duties, and startup taxes are contributing significantly to government revenue. The transition to renewable sources of energy is essential for Nigeria's sustainability and the government is gradually moving towards this transition while ensuring a just and inclusive process for all stakeholders involved. In terms of achieving Sustainable Development Goal 7 (SDG 7) for universal access to affordable, reliable, and modern energy services, partnerships are essential. The government of Nigeria needs to forge partnerships with private investors, international organizations, and local communities to facilitate access to energy for all citizens. The policy framework in Nigeria has improved to attract investors, but continuous efforts are needed to make it easier for investors to participate in the energy sector. Prof. Eli Bala, the Director General of Nigeria's Energy Commission, emphasized the importance of a gradual energy transition to renewable sources, ensuring that the current generation is not left behind. With an increasing focus on non-oil revenues and the growing renewable energy sector, Nigeria is on the path to a sustainable and inclusive energy future.