OPTIMIZING THE EXPLOITATION OF NATURAL

ENERGY RESOURCES IN NIGERIA FOR ACCELERATED

SOCIO-ECONOMIC DEVELOPMENT: STRATEGIES AND
OPPORTUNITIES FOR INVESTMENT*

!"

#$%&'()'*'(*+,-%. //0.(0#/1.(2)*.(20*3.(2)345

67$89:%$;
67$89:%$;<848$+=.(348$5"(>%,,7??7%4(%&(0758$7+.
#=%:(@AB>.(>84:$+=()$8+.(#1!(CDE.(<+$F7.()-GH+.(0758$7+
3,+7=I(+??+,-%J"+K%%'9%, +4L(L5J848$5"'5%M'45

*Paper Presented at 2010 Science and Technology Summit,

Shehu Musa ‘Yar’Adua Centre, Abuja,
1
9th-10th August, 2010
 CONTENTS

1. Introduction

2. Energy and the Economy

3. Strategies for the Optimum exploitation of Energy

Resources in Nigeria

4. Investment Opportunities

5. Challenges and the Way Forward

6. Conclusion

2
 1. INTRODUCTION

• It is a well acknowledged fact that energy is essential

for socio-economic development of all nations.

• It is required to power all sectors of the economy.

• Nigeria is endowed with fossil, nuclear and renewable

energy sources.

• All fossil fuel resources are depletable.

3
 1. INTRODUCTION Cont’d…

• Renewable energy is replenisheable through natural

processes within a relatively short time.

• The National Energy Policy (NEP), approved in 2003 by

the FEC, articulates the optimum exploitation of all
energy resources in the country in a sustainable
manner and with the active participation of the private
sector.

4
 1. INTRODUCTION Cont’d…
• Petroleum and electricity are the widely used
commercial energy end products in Nigeria.

• For example, petroleum products accounted for 67.4%

of the total primary energy consumed in 2008.

• Fuel-wood, a traditional fuel widely and extensively

used by the rural and peri- urban dwellers, is hardly
considered commercial, largely due to its non-export
status.

• Although all forms of energy can be transformed into

electricity, however, there is a huge disparity in
electricity demand and supply in Nigeria.

5
 1. INTRODUCTION Cont’d…

• Though the demand and supply imbalance for fuel

petroleum products is presently low, the supply
strategy is unsustainable because most of the supply is
imported due to inadequate local refining capacity in
the country.

• Also fuelwood consumption is unsustainable because

supply is diminishing as a result of desertification.

• Large hydropower, has so far contributed about

2,000MW only to the total grid-connected electricity
generation capacity in the country.

• Currently solar, wind, small hydro and biomass are yet

to contribute significantly to electricity supply.
6
 1. INTRODUCTION Cont’d…

• However, solar, wind and fuelwood have been traditionally

employed in:
• open-to-sun drying,
• grinding of grains and
• cooking, respectively.
• Biomass, and in particular fuelwood, accounts for over 90% of
the domestic energy needs of over 70% of the nation’s
population, who dwell in rural areas and peri-urban centres.
• While mining of uranium ore has not been started in Nigeria, its
mining in the neighbouring Niger Republic has been going on
for about two decades.

7
 1. INTRODUCTION Cont’d…

• Use of coal since its discovery in Nigeria has

drastically declined.

• The gaps in the nation’s energy supply matrix arise

due to the non-implementation of the strategies for
the exploitation of our energy resources, as
articulated in the National Energy Policy and its
Masterplan.

• The question is: what is the way forward? Before

answering this question we need to look at
energy/economy interactions and to understand the
strategies for energy exploitation and investment
opportunities in the energy sector.
8
 2. Energy and the Economy

• a) Fossil Energy Resources

S/N Resources Reserves Production

(2008)
1 Crude Oil 32.2billion barrels 1.98Mb/day

2 Natural Gas 187 TSCF 2.28BSCF/day

3 Coal 2.7 billion tones 0

4 Tar Sands 31 billion barrels 0

of oil equivalent

Source: CBN (2009)

9
 2. ENERGY AND ECONOMY…Cont’d

• b) Renewables and Nuclear

S/N Resource Reserve Utilization Level
1 Large hydro power 11,250MW 1,972MW
2 Small Hydro power 3,500MW 64.2MW
3 Solar Energy 3.5kW/mN/day -10MW solar PV stand-
alone
7.0kW/mN/day
-No solar thermal
electricity
4 Wind 2-4m/s at 10m height -2x2.5KW electricity
generator

-10MW wind farm

contracted in 2009.
5 Fuel wood 11 million hectares of forest and 43.4 million tones of fuel
woodlands wood/yr

Municipal waste - 18.3 million tones in 2005 -

Biomass Animal waste - 243 million assorted animals in 2001 -

Energy Crops and - 28.2 million hectares of Arable land 8.5% cultivated
agric waste
6 Nuclear not yet quantified 30kW
Source: REMP (2005)
10
* FM ENV
 2. ENERGY AND ECONOMY…Cont’d

• . c) Energy Production
*O0 P"Q8 NAAC NAAR NAAD NAAS NAA@ NAAE

B' >%+=(T,7==7%4(:%48?U A A A A A A

N' /7=(T,7==7%4(-+$$8=?O(L+"U N'C N'D N'D N'N N'N B'VE

C' 0+:G$+=(5+?(T-7==7%4(,CU( DN'@D DV'@S DE'CD SB'EA @A'B SC'ER

TW(&=+$8LU TRR'BWU TRA'RWU TCV'RWU TCS'BWU TCB'BWU TNS'EWU

R' 3=89:$797:"(<848$+:7%4( NN'AC NC'V NR'NN NC'E NC'C NB'N@
T-7==7%4(FXKU

Sources: (i) Central Bank of Nigeria (CBN) 2006, 2008)

(ii) www.opec.org/library
(iii) National Bureau of Statistics (NBS) (2007, 2009)
• *Though Nigeria has a resource of 2.7 billion tonnes of coal, production declined from a peak
of 0.91 million tonnes in 1959 to no production in 2001, because of petroleum, which was 11
discovered in commercial quantities in 1956
 2. ENERGY AND ECONOMY…Cont’d

.
• d) Energy Consumption
*O0 P"Q8 NAAC NAAR NAAD NAAS NAA@ NAAE

B' >%+=(TWU A'AC A'AC A'AC A'AD A'AD A'AD

N' Y"L$%(TWU BR'N B@'CV BN'A B@'AC NC'VA BV'A

C' 0+:G$+=(5+?(TWU B'V R'DR D'DA @'DN E'@C BD'N

R' #8:$%=8G,(#$%LG9:?(TWU EC'E@ @E'AR EN'DA @D'RR S@'DC SD'@

D' P%:+=(T1:%8U BV'BB BS'N@ B@'@ BN'NA BB'CV BN'AR

Source: Central Bank of Nigeria (CBN) (2006, 2008)

• Petroleum product is widely consumed energy type and the largest amount of that
Consumed is imported, despite the country’s status as the largest oil producer in Africa
12
 2. ENERGY AND ECONOMY…Cont’d
• e) Energy, Economy and Social Indicators
S/N. Indicator 2003 2004 2005 2006 2007 2008
1 Real GDP Growth (%) 9.6 6.6 6.5 6.0 6.2 6.4
2 a) Major Contributors to GDP*

!Agriculture (%) 41.010 40.98 41.19 41.72 42.20 42.07

.!Crude Petroleum (%) 26.53 25.72 25.26 21.85 19.35 17.54

b) Major Contributor to

Federal revenue (net)

!Crude Petroleum (%) 75.0 77.0 72.4 76.7 67.7 71.8

3 Energy Intensity (kgoe/$) (Energy
Consumption/GDP)
0.244 0.186 0.157 0.086 0.063 0.069
4 GDP/Capita (US$) 620.9 673.2 847.4 1,036,2 1,256.6 1,176.1
5 Energy Consumption/Capita 151.3 125.5 132.6 87.1 81.4 80.8
(kgoe/capita)
6 Electricity consumption/capita 174.6 176.4 181.4 167.6 161.2 142.9
(kWh/capita)
7 Electricity Access (%) 55.2% from
40% in 1993

Sources: CBN (2006,2008),NBS (2009); *GDP is at 1990 Constant Prices 13

 2. ENERGY AND ECONOMY…Cont’d

• e) Energy economy and social indicators Cont’d

• Social Indicators
S/N Indicator 2003 2004 2005 2006 2007 2008

8. Population growth 2.8 2.8 2.8 3.2 3.2 3.2

rate (%)

9. Adult literacy rate (%) 57.0 62.0 57.0 64.2 64.2 66.9

10. Incidence of - 54.4 54.4 54.0 54.0 54.0

poverty(%)

11. Life expectancy (yrs) 54.0 54.0 54.0 54.0 54.0 54

13 Unemployment - 13.4 11.9 14.6 10.9 12.8

rate(%)

Sources: CBN (2006,2008), NBS(2009)

14
 2. ENERGY AND ECONOMY…Cont’d

• Energy Sector Organizations

PCP !"#$%&#'() NEC

Office of Special Fed. Ministry Fed. of Ministry Fed. Ministry

Federal Ministry Advisers of Power Mines & Fed. Ministry of of Environment
of Petroleum Steel Dev. (Coal, Tar Science & Tech.
sand, Uranium)

NNPC &
DPR PPPRA
Subsidiaries PHCN NDPHC NERC
KEY:
PHCN- Power Holding Company of Nigeria Energy Com.
REA - Rural Electricity Agency (REA),
of Nigeria NNRA NAEC
NERC- Nigerian Electricity Regulatory Commission
ECN - Energy Commission of Nigeria
NDPHC - Niger Delta Power Holding Company
NEC - National Energy Council
NNRA – Nigerian Nuclear Regulatory Authority
DPR- Department of Petroleum Resources 6 Energy Research
NAEC- Nigeria Atomic Energy Commission Centres 5 Nuclear Research
PPPRA – Petroleum Product Pricing Regulatory Agency Centres
PCP – Presidential Committee on Power 15
15
 3. STRATEGIES FOR OPTIMUM EXPLOITATION
OF NATURAL RESOURCES IN NIGERIA
Investing in and
intensifying crude oil
exploitation and
production
Maximizing and
Taking appropriate expanding the refining
measures to ensure that capacity in the country
Nigerians are put into to cater fully for local
key decision-making consumption and export
positions in the oil CRUDE of petroleum products
industry
OIL

Providing appropriate fiscal

incentives to attract investments Expanding and promoting
and ensure reasonable returns. research and development
Ensuring adequate geographical activities in the country
coverage of oil refining and
products distribution network
16
 3. STRATEGIES FOR OPTIMUM EXPLOITATION
OF NATURAL RESOURCES IN NIGERIA ..Cont’d

Encouraging local
engineering design and
fabrication of
equipment and spares
in Nigeria
Ensuring the use of Ensuring the availability
locally available Ensuring the availability
of adequate strategic
materials, such as CRUDE of adequate strategic
reserves of storage
bentonite and barytes, OIL reserves of storage
capacity for refined
for oil exploration capacity for refined
CONT’D products for at least 90
products for at least 90
days of forward
days of consumption
consumption
Reviewing existing laws
and regulations to create
Improving the living standards of
the enabling environment
people in oil producing communities
for increased private
through the provision of socio-
sector participation in the
economic infrastructure.
oil industry, especially the
downstream
17
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d
Encouraging the oil-
producing companies
to gather and utilize
associated gas in
order to eliminate
flaring Imposing
Providing appropriate and
incentives to effective
encourage penalties to
industrial and discourage gas
domestic flaring
consumers to use NATURAL
gas or convert to
gas GAS
Encouraging the
establishment of the
necessary
Establishing suitable infrastructure for the
infrastructure for the effective gathering,
export of natural gas transmission and
distribution of gas
nationwide 18
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d
Providing incentives to
encourage the introduction
and use of LPG appliances
in areas not accessible to
natural gas to encourage
the consumer preference
for gas Expanding and
Providing necessary
incentives to promoting gas
indigenous and related R & D
foreign outfits in the
entrepreneurs to NATURAL country
facilitate their GAS CONT’D
participation in the
gas industry
Formulating suitable urban
and regional planning
regulations needed for the
Ensuring that the price of effective distribution of
natural gas is cost natural gas and its
effective, while giving due utilization by domestic and
attention to the effect on industrial consumers
local consumption
19
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Undertaking
exploration and
exploitation activities
for tar sands deposits
in the country Establishing an
appropriate
regulatory institution
Establishing infrastructural for the tar sands sub-
facilities for the acquisition of sector
the technology for harnessing
tar sands TAR
SANDS

Putting in place necessary

Intensifying R & D in the regulations and guide lines
production of lubricants and other for the exploitation of tar
heavy oil products from tar sands sands

20
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Establishing heavy oil

upgrading facilities
near the tar sands
deposits.

De-emphasizing the Providing

importation of heavy appropriate
crude oil as a way of incentives to
encouraging the TAR facilitate investment
utilization of heavy SANDS in exploration and
oils from our tar exploitation of tar
sands. CONT’D sands resources

Providing an appropriate
financing facility to support
indigenous investments in tar
sands development.

21
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Intensifying the drive for coal

exploration and production
activities.
Providing
adequate
Providing
incentives to
adequate
indigenous and
incentives for the
foreign
large scale
entrepreneurs to
attract COAL production of
coal stoves at
investments in
affordable prices.
coal exploration
and production.
Providing adequate incentives to
indigenous and foreign
entrepreneurs for the
establishment of coal-based
industries
22
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Developing adequate
infrastructure for handling
and transportation of coal
within and out of the country.

Organizing
Encouraging R
awareness
& D in the
programmes for the
use of smokeless COAL production,
CONT’D processing and
coal briquettes as
utilization of
alternative to
coal.
fuelwood.

Re-introducing the use of

coal for power generation
especially with clean coal
technologies.
23
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Intensifying manpower
development in the
utilization of nuclear
Providing adequate energy for peaceful
resources to the purposes. Creating incentives
Nigerian Nuclear for career
Regulatory Authority development in
(NNRA) for the nuclear science
enforcement of nuclear and technology.
security and safety laws
and regulations.

NUCLEAR

Providing adequate resources to

the Nigeria Atomic Energy
Intensifying research and Commission (NAEC) to promote
development efforts in nuclear the use of nuclear energy for
science and technology. peaceful purposes including
nuclear power 24
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Undertaking
regular public
enlightenment Fostering co-operation
campaigns on with the International
.
applications of Atomic Energy Agency
nuclear
technology,
nuclear safety
and radiation
protection
NUCLEAR
CONT’D
Identifying accurately Establishing a nuclear
the availability and the radiation surveillance
extent of nuclear and programme for the
other related mineral protection of the
resources. environment
25
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Providing adequate Intensifying research

incentives to and development in
.
suppliers of solar solar energy
energy products technology
and services

SOLAR

Providing adequate
incentives to local Promoting training
manufacturers for the and manpower
production of solar development
energy systems
26
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Setting up and
maintaining a
comprehensive
information system
on available solar
energy resources
and technologies
Providing adequate
resources to the ECN
to domesticate solar
and other .renewable
energy technologies
in Nigeria

SOLAR Cont’d..
Setting up extension
Providing fiscal programmes to
incentives for the introduce solar
installation of solar technology in to the
energy systems energy mix
27
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Ensuring increased
indigenous participation
in the planning, design
and construction of
Establishing and hydropower stations.
maintaining
multilateral Providing basic
agreements to engineering
monitor and regulate infrastructure for
the use of water in HYDRO the production of
international rivers hydropower plants,
flowing through the POWER equipment and
country. accessories

Encouraging the private sector, both

indigenous and foreign, in the
establishment and operation of
hydropower plants 28
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Encouraging the private

sector, both indigenous and
foreign, for the local
production of hydropower
plants and accessories
Ensuring that Promoting
rural and
electricity supporting R
boards & D activities
incorporate HYDROPOWER for the local
small-scale CONT’D adaptation of
hydropower hydropower
plants in their plant
development technologies
plans
Initiating and updating data
on the hydro potential of our
rivers and identifying all the
possible locations for dams 29
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Encouraging
research and
development in wind
energy utilization. Developing skilled
manpower for provision of
Intensifying work in basic engineering
wind data acquisition infrastructure for the local
and development of production of components
wind maps. and spare parts of wind
power systems

Training skilled local

WIND
craftsmen to ensure
the operation and
maintenance of wind
energy systems. Providing appropriate
incentives to producers,
developers and
consumers of wind
power systems.
Developing extension
programmes to
facilitate the general
use of wind energy
technology
30
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Encouraging R & D in hydrogen

energy related technologies

Development Providing
of domestic HYDROGEN incentives to
capacity in popularize the
hydrogen use of
production and hydrogen as
application an energy
technologies. source.
31
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

Gathering information on the

development of these emerging
technologies.

Prioritizing the level

of need, level of Encouraging R & D
technological in the technologies
development and OTHER
RENEWABLES of the exploitation
viability of of these emerging
emerging energy resources.
renewable energy
resources

32
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

• i) Electricity:-
• Rehabilitating existing power plants in order to derive
optimum power from the installed capacity.
• Completing on-going projects designed to enable the Power
Holding Company of Nigeria (PHCN) satisfy the national
demand.
• Reinforcing the transmission and distribution networks
necessary to allow consumers to enjoy steady and reliable
supply of electricity
• Establishing basic engineering infrastructure for the local
manufacture of electrical equipment, devices and materials.
• Encouraging R & D in the generation, transmission and
distribution of electricity.

33
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

• Reducing high import duties paid on generation,

transmission and distribution materials.

• Strengthening the National Electricity Supply Training

Institute and zonal training centres where the core of the
middle level manpower and artisans, various cadres of
professional technical officers, operators, linesmen and
cable joiners are to be trained and groomed in the art of
operation and maintenance of equipment for the generation,
transmission and distribution of electricity.

• Ensuring the participation and involvement of indigenous

engineers and applied research groups in the execution of
on-going and future projects right from feasibility studies,
with the objective of establishing local capacity in the long
term.
34
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

• Developing and implementing a programme for the

participation of the private sector in the various sectors of
the electricity industry.

• Developing other potential sites for hydropower, gas and

coal-fired power plants for electricity generation.

• Intensifying efforts to generate electricity using nuclear,

solar, wind and other renewable resources in order to
conserve our fossil fuels and expand our energy security.

• Taking effective measures to ensure the security of

electrical installations.

• Providing appropriate incentives to entrepreneurs to ensure

adequate returns on investment.

35
3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

• Providing appropriate financing facilities to support

indigenous investments in the electricity industry.

• Encouraging off-grid generation and supply of power in

remote or isolated areas.

• Establishing a Rural Electrification Fund to facilitate

electrification in the rural areas.

• Establishing a reduced tariff regime for very low income and

especially handicapped electricity consumers and a
mechanism for funding the subsidy.

36
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

• j) Energy Efficiency and Conservation

• Ensuring strict adherence to the regulations of the

petroleum industry, and relevant agencies on energy
resource exploitation and the environment.

• Providing institutional arrangements and incentives for the

promotion of energy conservation and the use of energy
efficient methods.

• Developing building codes so that buildings are designed to

take advantage of climatic conditions in order to reduce
energy consumption.

• Ensuring the importation of the more energy- efficient

equipment and machinery.

37
 3. STRATEGIES FOR OPTIMUM EXPLOITATION OF
NATURAL RESOURCES IN NIGERIA ..Cont’d

• Reducing energy consumption by improving and expanding

mass transportation and communication systems all over
the country.

• Promoting R & D activities in energy conservation and

efficiency including the development and manufacture of
energy- efficient equipment and machinery.

• Encouraging the production and use of improved and more-

efficient cooking stoves.

• Taking appropriate measures to reduce energy storage,

transmission and distribution losses.

• Promoting public awareness about the benefits of improved

energy efficiency.

38
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES
• The following investment and business opportunities would
ensue from the strategies earlier outlined:

a) Crude oil:-

• Crude oil exploration and production

• New refining capacity

• Establishment of outfits for engineering design and

fabrication for the oil sub-sector

39
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

• Natural gas:-

• Natural gas gathering, processing, transmission and

distribution infrastructure within the country.

• Natural gas export infrastructure development.

• Natural gas exploration and production activities.

• Establishment of new gas fired power plants.

• Establishment of new petrochemical plants.

40
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

Eleme Refinery Port-harcourt Off-shore gas Production

41
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

• Tar Sands:-

• Exploration and exploitation of tar sands.

• Refining of heavy crude.

• Coal:

• Coal exploration and exploitation.

• Production of smokeless coal briquettes.

• Production of coal stoves.

• Establishment of coal mines.

• Establishment of coal power plants especially with clean coal

technologies.

42
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

Coal power plant in Morocco,

Coal power plant in Mauritius, 2x330MW, 2x348MW
2x35MW, coal & bagasse (1994-2001 ) 43
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

• Nuclear:-

• Exploration and Mining of uranium ore deposits

• Establishment of nuclear power plants.

44
Koeberg Nuclear Power Plant, South Africa(2x920MW)
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
• Hydropower:- • .

• Manufacturing of hydro turbines and accessories

• Establishment of new hydro power plants.

30 kW Ezioha Mgbowo !*+,-./0123456/7-3.+13+-.1-8*1

SHP Station, 9:;110<1=.>*618.5,*17-1<7?71
45
Enugu State &7@A1B75/831$-7-*1
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
• g) Fuelwood

• Establishing of plantations of fast growing tree species for fuelwood supply

• Production of efficient fuelwood stoves

46
Improved Fuelwood Stoves
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
• h) Solar:-

• Manufacturing of solar modules and balance-of-systems

components.

• Production of solar water heaters, solar cookers, solar driers,

etc.

• Establishment of power plants for electricity generation from

solar energy (solar PV + solar thermal).

• Supporting services (sales, installation and maintenance)

47
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
.

*%=+$(X+:8$(Y8+:8$(+:([6[PY(-"(*3Z>.(*%F%:%
*%=+$(X+:8$(Y8+:8$(L8M8=%Q8L(-"(0>3Z6
48
4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

49
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

$.C761-8*6@7C1!C7+-13+1$=73+1DE*C3.,-7-F :;1G<1$.C761-8*6@7C1!C7+-13+1$=73+1D!7672.C3/F

Z+4F748(>"9=8 )$$+"(%&(#+$+-%=79(*%=+$(>%==89:%$? 50
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
• Biomass:-

• Production of electricity from biomass (biogas, agric waste, municipal

waste of biological origin).

• Biofuel production.

• Biofuel feedstock production.

• Production and marketing of biomass briquettes and stoves.

Biogas Digester
at Tai Solarin Sec. Sch.
Ikene, Ogun State

)*"+,-%!*+$-0$;%.*/"0%./,10%,0%<=>?!5% !"#$%&'($%)*"+,-%.*/"0%./,10%,0%!,12,3,% 51
@<<5%<-A77,%% 4*//,+$5%6,#,77"%895%:"7"0"%:0,0$
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d

Sludge

Biogas digester Power House

Generating Plant

A 750 kW Plant for Biogas Electricity

Generation in Germany
52
 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
• Wind:-

• Establishment of wind electricity generation plants (wind farms)

• Setting up of services businesses in wind technology

150MW Osorio Wind Farm, Brazil

CAD(1X(X74L(2+$,(+:(\+4&$+4+.(+=%45(:K8(
Z8L(*8+.(35"Q:

5kW aero generator in Sayya Gidan Gada, Sokoto State 53

 4. INVESTMENT AND BUSINESS
OPPORTUNITIES …Cont’d
• Energy efficiency and conservation

• Manufacturing of CFLs, LEDs and energy efficient electric motors,

refrigerators and airconditioners.

• Sale of CFLs, LEDs and efficient electric motors, refrigerators and

airconditioners.
33(]+,Q

54
 5. CHALLENGES AND WAY FORWARD

• a) Challenges:

• Unstable Polity

• Inconsistency in energy policies implementation

• Inadequate authority for the coordination of the energy sector

• b) Way Forward:

• Strive toward stable polity

• Strengthening of Energy Commission of Nigeria as the

coordinating organ of Government on energy policies and
plans.

• Enactment of an integrated energy law as an instrument of

coordination of the energy sector.
55
 6. CONCLUSION
• Nigeria is endowed with many energy resources, which
can be utilized to enhance the socio-economic
development of the nation.

• The strategies that should be employed to optimally

exploit these energy resources for national
development are well articulated in the overall National
Energy Policy adopted by Government in 2003.

• These strategies would create opportunities for

investments and businesses in the energy sector and
the entire national economy.

• To implement the strategies fully, the polity must be

stable and appropriate legal backing given to the NEP
and the NEM by enacting an integrated energy law.
56
THANK YOU

57