Energy · July 8, 2021 0

How does the energy sector work in Nigeria?

If you are wondering how the energy sector works in Nigeria, let us tell you that in reality this service was previously difficult to access for most of its inhabitants, however today, after much government effort, this reality is gradually changing. and offering greater accessibility for the nation’s population.

Nigeria, betting on a better future in the energy sector

In 2021, the World Bank approved an aid of 500 million dollars that would allow Nigeria to improve the electricity distribution sector in its country, this project aims to increase access to electricity for the entire population and improve the performance of companies that facilitate electricity distribution, through a large-scale program in terms of electricity.

43% of the population in Nigeria does not have access to electricity, this is equivalent to almost 85 million people, which makes this country one of the countries with the greatest deficit in access to this service in the world.

According to the World Bank, the problems of the energy system presented by this and other countries have a great impact both on the performance of the daily life of its citizens and on the companies that make life in the nation and can generate annual losses that equal to millions of dollars.

According to the country director at the World Bank, it is necessary to improve the access and reliability of the electricity system in most of the world, with the idea of ​​being able to reduce poverty and help with economic growth, especially after having gone through the global pandemic generated by covid-19.

If you want to know more about the use of electricity and other renewable and non-renewable resources on the African continent, we invite you to read other articles that are already available on our blog and may be of interest to you. Don’t miss them.

He also pointed out that the operation will help improve the financial investment of the companies that provide electricity distribution services in Nigeria, increasing income in the entire sector and improving the quality of life for the population, in addition this will indirectly produce a decrease in investment of fiscal resources of the country and will generate a greater source of jobs.

This entire initiative is carried out through the Nigerian Electricity Sector Recovery Program or DISRP as its acronym indicates, which aims to guarantee that the country’s electricity distribution companies improve their performance, increase their reach and install the largest possible number of electricity meters to ensure the quality of service provision.

In addition to this, the program aims to reduce CO2 emissions, reducing technical loss, increasing the efficiency of the energy service and investing in renewable energy sources that can help provide a sustainable service that is more easily accessible to the entire population. population.

It is more than clear that this initiative will not be easy to carry out and will probably take several years to materialize, however, it is a movement that is committed to having a great impact and scope in the country.

In addition, it is necessary to take into account that the economy in Nigeria depends mostly on oil, which represents more than 95% of income in terms of exports and 65% of what the government receives.

This is due to the fact that Nigeria also has the largest natural gas reserves in Africa, however, it is not exactly a highly developed country, so the infrastructures that are oriented to the extraction and distribution of this resource are very scarce.

In this sense, a similar situation occurs with the service and distribution of electrical energy, for which various African organizations have committed to participate and help increase improvements in terms of energy aspects in the country.