Dar es Salaam: Nigeria has been identified as a key player in a World Bank and Africa Development Bank-led initiative aimed at delivering affordable energy to 300 million Africans by 2030. Mrs. Olu Verheijen, Special Adviser to the President on Energy, conveyed this during a discussion with State House correspondents at the Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania.
According to News Agency of Nigeria, Africa faces a significant electricity access challenge, with an estimated 600 million people lacking access. Nigeria alone accounts for 86 million of these individuals. Despite this, Nigeria has achieved a 61 percent electrification rate and has committed to a strategic energy compact aimed at reducing the electricity access gap through private sector investment.
Verheijen emphasized that Nigeria’s energy compact is driven by the goal of transforming the nation into a one trillion dollar economy by 2030, which includes enhancing energy sufficiency to alleviate poverty, create jobs, and prom
ote industrialization. Achieving this ambitious target within five years is seen as essential for uplifting living standards and ensuring prosperity for Nigerians.
Verheijen highlighted the progress made over the past 18 months, including the removal of long-standing petroleum subsidies and the move towards cost reflectivity in the electricity sector. These measures are part of a broader strategy to improve the financial viability of utilities and create prosperity for Nigerians.
Nigeria’s off-grid electricity initiatives have been successful, with over seven million Nigerians gaining access to electricity through distributed renewable energy solutions in rural and unconnected areas. The Federal Government aims to further expand this access to 17.5 million Nigerians with support from development partners under the Rural Electrification Agency program.
Verheijen also addressed the challenges facing Nigeria’s on-grid electricity, particularly in transmission and distribution. Improving the financial viabilit
y of the entire value chain is necessary to ensure reliable and affordable on-grid energy. The Presidential Metering Initiative aims to close the metering gap by deploying seven million meters by 2027, enhancing revenue collection and enabling further investments.
Resolving the legacy debt and implementing cost-reflective tariffs are crucial steps in improving the electricity sector. The government plans to continue supporting the poor and vulnerable while transitioning the rest of the market to cost-reflective tariffs. Driving efficiencies across distribution, generation, and transmission companies is essential for achieving cost-efficient tariffs.
Verheijen noted that addressing the sector’s debt overhang through presidential initiatives to clear legacy debts is vital for boosting investor confidence. By implementing these measures by 2027, Nigeria aims to attract private sector capital to the electricity value chain, thereby enhancing the overall energy supply and achieving the country’s economic goals.