A review of stakeholders and interventions in Nigeria's electricity sector

Abstract

In this paper, we explored the interplay between the electricity market structure, methods of electricity trading and different stakeholder dynamics within the Nigerian Electricity Supply Industry (NESI) with a view to understanding how these interplays impact on various forms of interventions in the Nigerian electricity sector. We started off by exploring the market structure and electricity trading system within the Nigerian electricity sector and reviewed the various stakeholder groups within centralized and decentralized electricity systems in Nigeria's electricity sector by highlighting their core responsibilities and the dynamics at play in satisfying their interests. This study revealed that: (1) external stakeholder groups (such as donor agencies and multi-lateral organizations) exert more influence in Nigeria's electricity sector through financial interventions;(2) lack of coordination and engagement among various stakeholder groups pose a challenge to effective electricity infrastructure interventions that address the needs of people in society. The study concludes by highlighting the implications of these challenges and the need to address the rising complexities and uncertainties for better stakeholder involvement in addressing the salient challenges in the sector.

Financing renewable energy: policy insights from Brazil and Nigeria

“…Second, donors often duplicate their efforts, leading to high transaction costs for both public and private stakeholders. For example, USAID's Renewable Energy and Energy Efficiency Project (REEEP) and GIZ's Nigeria Energy Support Program (NESP) have significant project overlap in terms of technical, advisory, and financial support in the RE sector [51]. Our interviewees associated this with increased transaction costs for developers and investors, leading to suboptimal outcomes in obtaining loans from domestic banks and attracting investment capital from foreign investors (R1, R4, and R6).…”

“…Administratively, public financing of decentralized clean energy has been led by the Rural Electrification Agency (REA), a sub-agency of the Ministry of Power that administers the Rural Electrification Fund (REF). The REA is funded through federal budget or loans from MDBs to build off-grid solar in remote communities, universities, and markets [51]. However, its lack of political independence, limited financial and investment management expertise, and focus on off-grid electrification in unserved communities have limited its capacity to mobilize the large amount of capital needed for utilityscale RE projects for a rapid energy transition.…”

“…This often consists of technical and financial support to policymakers, domestic financial institutions, and project developers. Edomah et al [51] provide a comprehensive review RE interventions by various development organizations in Nigeria. Figure 7 shows that the U.S. (32.97%) is the largest provider of public finance for renewables in Nigeria, followed by Japan (10.81%), Germany (8.65%), and the UK (5.41%).…”

Who triggers change? Social network mapping, stakeholder analysis and energy systems interventions in Nigeria’s electricity sector

“…All sectors such as transport, housing, agriculture and industry (at municipal, sub-national, national, regional and global levels) depend on it [5,6]. The need to provide energy that facilitates sustainable development, impact health and improve human wellbeing has been a major driver of energy demand and energy systems interventions [7,8]. Addressing issues around increased energy demand also provides an opportunity to address the energy transition challenge.…”

Nigeria's energy review: Focusing on solar energy potential and penetration

“…Moreover, Nigeria's energy poverty is very alarming (Edomah et al, 2021 ), with some reports describing the electricity's performance records as appalling (Ebhota & Tabakov, 2018 ); thus, it becomes imperative for unceasing research on the energy situation to provide possible solutions to mitigate the problem. Worldbank ( 2021 ) also stated that many people live without access to the grid, making the situation very concerning, affecting the citizens and economic growth of the country.…”