Enlight Series

In August 2022, Nigeria launched its Energy Transition Plan to achieve net-zero emissions by 2060, targeting key sectors like oil and gas, power, cooking, transport, and industry, responsible for 65% of the nation’s total greenhouse gas emissions. Acknowledging the need for sustainable energy due to climate change and volatile oil prices, the plan emphasizes a shift away from fossil fuels. Recent surges in international oil prices, breaching $94 per barrel, further underscore the urgency of this transition. The evolving energy landscape will demand adaptive decisions from industries, stakeholders, and policymakers, significantly impacting the economy. Investments are already redirecting towards emerging energy production areas, affecting labor markets. The energy transition will also reshape various industries, notably the oil and gas sector, presenting an exciting yet challenging shift with potential economic ramifications. 

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The impacts of ineffective customer enumeration in Distribution Companies (DisCos) have far-reaching consequences beyond numerical inaccuracies. This critical issue led the Nigerian Electricity Regulatory Commission (NERC) to review the progress of the customer enumeration exercise by the DisCos. Ineffective customer enumeration in DisCos causes revenue losses, operational inefficiencies, customer dissatisfaction, data management problems, difficulty in load management, regulatory and compliance issues, planning and expansion challenges, and ineffective marketing and communication leads to poor performance in all parameters.

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Electricity’s value is realized when it’s transmitted and consumed, with the transmission network serving as the conduit for this process. In Nigeria, the national transmission network is government-owned and managed by the Transmission Company of Nigeria (TCN). The TCN had ambitious plans to expand the network’s capacity and infrastructure to accommodate up to 20,000MW by 2022, with a proposed 765KV Super grid requiring a substantial investment of $5 billion. However, these plans have not been successfully realized, leading to frequent grid constraints and system collapses within the Nigerian Electricity Supply Industry (NESI). In 2022 alone, the national grid experienced six collapses, severely impacting Generation Companies (GenCos), resulting in financial losses, underutilization of generation capacities, electricity shortages, and revenue deprivation for GenCos. The challenges underscore the critical need for addressing the persistent issues in Nigeria’s power transmission sector. 

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In 2022, Nigeria launched its Energy Transition Plan, aiming to achieve net-zero emissions by 2060. Focusing on major sectors like Power, Cooking, Oil and Gas, Transport, and Industry—accounting for 65% of the nation’s greenhouse gas emissions—it primarily targets the power sector, the largest contributor. The plan emphasizes shifting from fossil fuels (oil, coal, gas) to renewables like biomass, hydro, geothermal, wind, and solar. This transition is gaining momentum, altering the energy landscape and workforce dynamics. Investments are redirecting toward renewable energy, impacting conventional power labor markets. To ensure a reliable replacement for fossil fuels, careful decisions and adaptations are needed. The energy transition will also reshape industries like manufacturing, construction, agriculture, and power, demanding strategic responses to navigate this transformative upheaval and mitigate its economic impact. 

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The impacts of ineffective customer enumeration in Distribution Companies (DisCos) have far-reaching consequences beyond numerical inaccuracies. This critical issue led the Nigerian Electricity Regulatory Commission (NERC) to review the progress of the customer enumeration exercise by the DisCos. Ineffective customer enumeration in DisCos causes revenue losses, operational inefficiencies, customer dissatisfaction, data management problems, difficulty in load management, regulatory and compliance issues, planning and expansion challenges, and ineffective marketing and communication leads to poor performance in all parameters.

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Transportation plays a vital role in human societies, enhancing satisfaction by enabling the movement of people, goods, and information. In the realm of road transportation, the choice of vehicular fuels is crucial. Two main categories are conventional fuels, primarily derived from fossil fuels like Premium Motor Spirit (PMS) and Diesel, combusted within the engine. On the other hand, alternative vehicle fuels (AVFs) are derived either wholly or partly from non-petroleum sources, offering a more environmentally friendly option for internal combustion engines. AVFs include Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Electricity, High Pour Fuel Oil (HPFO), Ethanol, Hybrid, and Solar power. These AVFs present sustainable alternatives, aiming to reduce environmental impact and dependence on fossil fuels in the realm of transportation. 

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Nigeria’s Electricity Distribution Companies (DisCos) are seen as the weakest link in the power value chain due to inadequate energy supply, outdated infrastructure, poor maintenance, untrained workforce, low meter penetration, and financial constraints. These challenges have severely impacted electricity provision and customer perception. Urgent action is needed to enhance the DisCos’ brand image through aggressive strategies, considering power’s crucial role in economic growth. 

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In August 2022, Nigeria developed its Energy Transition Plan (ETP) in line with its commitment to limit global warming to 1.50C under the 2015 Paris Agreement. The ETP developed an implementing framework for transitioning to renewable energy for five sectors: industry, cooking, transport, oil and gas, and power. With respect to the industrial sector, the plan’s near-zero carbon emission strategies will have significant compliance implications for industry players. Thus, establishing a predictable and sound policy is critical for industry planning and decision-making. First, consideration should be given to the transition plan’s industrial decarbonization strategies.

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Nigeria presents a promising market for clean energy transition due to its abundant natural resources like gas, solar, wind, and minerals. With 92 million people lacking adequate energy access, addressing this deficiency requires substantial investment and technical expertise. Both government and private sectors are inclined towards electrification goals, attracting local and foreign investments. However, hurdles deter potential investors, necessitating strategies to derisk renewable energy investments. Nigeria’s energy landscape is dominated by fossil fuels, hindering the progress of renewable energy. The IRENA Nigerian Renewable Energy Roadmap highlights the immense potential, emphasizing the need to transition towards renewable sources for a sustainable energy future. 

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