NNPC CEO Urges Urgent Action on Nigeria’s Electricity Crisis
Written by Jerry Alomatu on May 23, 2024
Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), emphasized the urgent need for Nigeria to address its electricity challenges to safeguard its economy.
Speaking at a stakeholders’ engagement in Lagos between the Nigerian Association of Petroleum Explorationists and the NNPCL, Kyari underscored the critical role of electricity in national development, noting that no country can progress without sufficient and affordable energy.
Kyari highlighted the alarming statistic that approximately 50 per cent of Nigeria’s population lacks access to electricity, leading to the closure of businesses. He stressed the imperative of resolving the electricity deficit as quickly as possible, especially given Nigeria’s youthful population, which represents 70 per cent of the total.
The NNPC CEO outlined efforts by the company and its partners to address power outages by focusing on the supply of gas, a crucial component in electricity generation. He emphasized the need to deliver gas to boost power production and increase access to electricity across the country.
While acknowledging solar energy as a potential alternative, Kyari cautioned against abandoning investment in fossil fuels, particularly gas, due to the ongoing energy transition. He emphasized the importance of leveraging available resources to enhance oil production, which serves as a significant revenue source for funding alternative energy projects like solar.
Kyari’s remarks come in the wake of nationwide blackouts experienced in January 2024 due to gas shortages, resulting from unpaid debts owed by electricity-generating companies to gas suppliers. The power generation capacity plummeted below 2,500 megawatts, significantly impacting the ability of distribution companies to meet customer demand.
Despite Nigeria’s total installed capacity of approximately 13 megawatts, challenges such as deteriorating infrastructure, poor maintenance, liquidity constraints, and ineffective regulatory frameworks have hampered electricity generation. Consequently, the country heavily relies on backup generators, with an estimated 40 per cent of electricity consumption sourced from these alternatives, according to the International Energy Agency.
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Author: Jerry Alomatu
Astute communicator
