Nigeria Energy and Climatic Change (NECC)
Nigeria’s energy generation is still 50 percent below its installed capacity of 6,000 mega-watts (MW). According to the World Bank, inadequate access to energy is the single largest obstacle to economic growth in Nigeria. Further, limited access to clean and modern energy services has forced the poor to resort to using unsustainable energy sources, such as wood, for their cooking, lighting, and heating. As a result, uncontrolled timber harvesting has led to significant environmental challenges, including desertification and the loss of carbon sinks, which have increased the amount of carbon dioxide (CO2) emissions.
Nigeria holds an estimated 184 trillion cubic feet of natural gas reserves, the largest in Africa, and the seventh largest in the world. In 2007, the Nigerian National Petroleum Corporation calculated that approximately 40 percent of the country’s gas production was flared, resulting in about 45 million tons of CO2 emissions, one of the principal greenhouse gases (GHG) that causes global climate change. Annually, an estimated $1.46 billion is lost in oil and gas revenues because of flaring. Although Nigeria lacks an adequate supply of gas for its thermal power stations, it flares more gas than any other country except Russia.
NECC Strategy
NECC will encourage new private sector entrants into the energy market, reduce gas flaring and channel it into commercial use, and improve regulation of the power sector. These results will contribute to the U.S. Government’s long-term goal of growing the Nigerian economy through the availability of clean, reliable, and affordable electricity. This support will also assist in increasing electricity generation from the current capacity of 3,700 MW to the GON target of 11,540 MW.
Activities Include:
Results
- Independent Power Providers (IPP) roadmap guiding IPP development created
- Gas Sales and Aggregation Agreements (GSAA) negotiated and signed with Shell and Chevron
- Financial, Legal, and Power System Senior International Advisors provided to the Bureau of Public Enterprises (BPE)
- Generation and distribution company valuation models developed
- Financial Analysis and Accounts Office established in the Nigeria Electricity Regulatory Commission