Nigeria will need substantial additional gas, generation, transmission and distribution infrastructure to meet electricity demands, Nigeria’s Minister of Power, Adebayo Adelabu, has said.
Mr Adelabu disclosed this while speaking at the 2nd Domestic Gas and Gas Infrastructure Summit 2023 held in Abuja on Tuesday.
Nigeria has struggled with poor power supply for decades, a challenge that is estimated to cost businesses about $29 billion yearly, according to the World Bank.
The country has the lowest access to electricity globally, with about 92 million persons out of the country’s 200 million population lacking access to power, according to the Energy Progress Report 2022 released by Tracking SDG 7.
Speaking on Tuesday, Mr Adelabu said Nigeria, despite being a major global producer of gas and a nation endowed with one of the largest gas reserves in the world, has struggled to deliver sufficient gas to the domestic market amid growing demand.
“With increasing population growth, Nigeria will need substantial additional gas, generation, transmission and distribution infrastructure to meet its electricity demands and it is believed that the much-needed capacity in generation will come from gas to power and renewable energy,” Mr Adelabu said.
The minister explained that the importance of gas in the Nigerian economy cannot be overemphasized as gas is a potent source of electricity generation that will sustain the much-needed power for national development.
Presently, he said the on-grid energy mix in Nigeria is dominated by thermal (80 per cent) and hydro (20 per cent) power-generating sources.
“Addressing climate change alongside achieving sustainable development objectives is core to the approach to power sector investments. Natural gas has a role as the energy transition fuel for rapid economic growth and industrialisation.
“It has several characteristics to play in supporting net zero transitions over the coming decades in Nigeria,” Mr Adelabu said.
Given the interdependence of the gas and power sectors, he said there is a need for a coordinated approach to policy formulation and implementation by both sectors in order to achieve the government objective of improving energy security and reducing energy poverty.
