LAW AND POLICY ON RENEWABLE
ENERGY SOURCES IN NIGERIA: A
CRITICAL APPRAISAL
BY
S. U. YAMUSA II AND A. H. ANSARI
INTRODUCTION
• Nigeria is a member of OPEC with about 33-45 billion
bbls reserve of crude oil and 4502.4 billion M2 (159
Trillion scf) reserve of natural gas
• The country had commercial discovery of oil in 1956
and first exportation in 1958(about 5,100 bpd)
• The First petroleum law was enacted in 1914 know as
Oil Mineral Ordinance of 1914
• Gas flaring started since in 1950s, therefore, over 50
years of air pollution recorded in the Niger Delta
• The country is bless with a number of renewable
energy sources (wind, small-hydro, Biomass and solar)
sustainable but yet to be exploited
CONCEPTUAL FRAMEWORK
• The country needs diversification of the energy sources
for sustainability and efficiency
• It will support human, economic, social, and
environmental development for a long period of time
• Sustainability of energy is not limited to constant
supply but also to the production and supply of energy
to strike a balance between human well being and
ecology
• The Brundtland Report identified energy sustainability
to include sufficiency, sustainable grow, supply to meet
with human need for all times to come
KEY DRIVERS FOR RENEWABLE ENEGY
DEVELOPMENT IN NIGERIA
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The demand-supply gap especially as population increases
A large untapped potential available in the country
Concern for environment to avoid degradation
The need to strengthen energy security in the country
Pressure on high-emission industry sector from the oil
companies
• It is a viable solution for rural electrification
• Insecurity/insurgency in the North, oil bunkering in the
south and the kidnap of expert-trade and very important
personalities in the country due to lack of jobs
ENERGY CONSUMPTION TREND IN
NIGERIA
• The consumption of energy in Nigeria is not in any way
different from the energy needs of other sovereign
states.
• Stable power supply in the country needs about 20,000
to 30,000 MW of electricity
• Power production in the country is below 4,000 MW
• Presently 17 companies are working to upgrade the
existing structure
• Attractive tariff may help matter in power generation in
the country
• Government should provide subsidy to attract
investors
POLICY DELINEATION IN NIGERIA
• There is several energy policy in the country as
coordinated by energy commission, but these
policies need review to incorporate renewable
energy
• The need for government to improve its
political will for most of these policies to be
implemented
LEGAL AND INSTITUTIONAL
FRAMEWORK
• There is no strong law governing energy
generation through renewable sources
• There is need for specific agency for renewable
energy development in the country
• The energy commission is supposedly to promote
as such but the commission is still following up
the enactment of renewable energy law in the
National Assembly
• There is the need to protect the environment
through energy diversification and renewable is
the answer
ENERGY COMMISSION OF NIGERIA
• Established in 1979 by Act No. 62 as amended
by Act No. 32 of 1988 and Act No. 19 of 1989
• It is the apex government body charged with
the responsibility of carrying out the country’s
energy sector
• Its includes planning, policy implementation
and the diversification of energy sources
OBJECTIVES OF THE COMMISSION
• To increase the energy sector that will add to the
development of National income and economy
• Provide adequate and sustainable optimal supply
of energy
• To provide sufficient consumption pattern for
indigenous energy technology and acquisition of
foreign technology
• To increase private investments and development
of the energy sector
FUNCTION, RESPONSIBILITIES,
CHALLENGES AND RECOMMENDATION
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Planning, coordinating, providing effective direction on policy formation and
implementation
Its over see the energy centers in the country
CHALLENGES
Funding
Policies needs review since 2007
Data not updated
No legal framework for renewable
It is difficult to implement policies
RECOMMENDATION
Legal framework to be put in place
Funding to be provided by both the government and private sectors
Political will from the leadership to be provided
incentive to be provided
Research funding to be increased
NIGERIAN ELECTRICITY REGULATORY
COMMISSION
• It is an independent regulator as an agency established on 31st
October 2005 by the electricity power sector reform (EPSR) Act
2005
• RESPONSILITIES
• Monitoring and regulating the electricity in the country
• Issuance of license to market participant in generation,
transmission, system operation, distribution and trading of
electricity
• CHANLLENGES
• Bureaucratic and institutional processes
• How it can best standardize market
• Participates across the rudiments of the regulatory scenery of
economic constraint and rates
MULTI YEAR TARIFF AND ORDER 2012
• This price system was adopted in October 2012 in
preparation for the privatization of the electricity
sector and it was outline to take-care of the
following
• Consumer/investors rights and obligations
• Rational for price increase if the need arises
• Consultations carried out by the commission
• Measures to mitigate effect of tariff increase
• Benefit of MYTO to consumers
• Retail tariff structure
MAJOR CHALLEGES TO THE
DEVELOMENT OF SOURCES OF
RNEWABLE ENERGY IN NIGERIA
• The country is facing the problem of economic,
social and human development
• Poverty rate in 1980 was 28.1%, moved to 70% in
2004 with an annual increase of about 2% yearly.
Presently about 130 million out of the 160 million
Nigerians are poor in the country despite the
country’s natural resources
• UNDP report shows that nine in every 10
Nigerians live on less than two dollar per day
CONCLUSION
• The country’s energy needs should be
provided through diversification of the energy
sources rightly available in the country
• The companies presently involve in the
ongoing privatization of the power sector
should be encourage by the government by
providing enabling environment by adjusting
the difficult regulations
THANK YOU