A SEMINAR ON THE POTENTIALS OF THE MINI-GRID AS A DRIVER OF THE NIGERIAN ECONOMY

ABSTRACT

Nigeria is a country with a population of over 170 million; it is rightly the most populous country in Africa and the eighth most populous country in the world. According to the United Nations, one in six Africans is Nigerian. It is a regional power, listed among the “Next Eleven” economies, and a member of the Commonwealth of Nations. Nigeria’s Gross Domestic Product (GDP) was revised in 2013. As a consequence of the re-basing, the estimate for Nigeria’s GDP in 2013 was revised upward from 42.4trillion Naira to 80.2trillion Naira ($500 billion), an 89% increase. But for over two decades, Nigeria has experienced problems in the area of electricity generation, transmission and distribution. The extent of this is underlined by the fact that Nigeria is the largest purchaser of standby electricity generating plants in the world. (Braimoh and Okedeyi 2010). The population growth rate is projected to be between 2.5 and 2.7% per annum in the next 20 years. The population of Nigeria is therefore forecast to potentially grow to 310 million by 2035.

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Mini-grids are essentially localized electricity networks that supply several users, whether households or businesses. They can be grid-connected, but they do not have to be. And, as a new report from the Africa Progress Panel (of which one of the authors is a member) shows – and as another report by the Rocky Mountain Institute underscores – mini-grids are an important piece of Africa’s energy puzzle.

Mini-grids can have a major competitive advantage over grid extension in rural and remote areas, because they can provide electricity more quickly and at much lower cost. Because mini-grids require less capital investment than grid expansion, it can be easier to secure financing for them, meaning that they can electrify communities that might have to wait years for a grid connection (Strive and Richard, 2017).

Mini-grids also have a distinct advantage over off-grid systems: greater power generation. Productivity-enhancing farm machinery, for example, usually requires more power than off-grid household systems can provide (Strive and Richard, 2017).

Moreover, mini-grids can be used to increase the resilience of existing electricity systems. Power cuts on the main grid can affect a large number of businesses and households, and it can be difficult to restore services quickly. Mini-grids can ensure that consumers retain access to power when the grid suffers interruptions (Oyewo et al; 2017).

Despite these benefits, the potential of mini-grids to help address Africa’s energy challenge has yet to be tapped. Reliance on mini-grids is expanding more slowly than in other world regions, with Africa being more likely to implement off-grid systems. One obstacle is the lack of proven commercial business models and adequate and appropriate forms of financing. Another is that policy frameworks often are not accommodating. And many developers and operators lack the requisite knowledge and experience (Strive and Richard, 2017).

 

 

 

1.2    STATEMENT OF THE PROBLEM

Despite impressive economic development in recent years, Nigeria still lags far behind on energy, with almost two-thirds of the continent’s citizens lacking access to electricity. While getting more power to the people is an important goal, extending electricity grids is expensive and slow. Meanwhile, off-grid options may not be sufficient to meet people’s energy needs. Fortunately, there is a third approach that can help fill in the gaps: mini-grids.

The situation is ripe for change. With the United Nations sustainable development agenda ambitiously targeting universal access to energy by 2030, policymakers are paying more attention to electrification, and development-finance institutions and partners are making more funding available. Meanwhile, the cost of renewable energy is falling; energy efficiency is improving, both for generating equipment and for the machines to be powered; and innovative digital technologies are facilitating the management of electricity services (Strive and Richard, 2017).

 

1.3    Objectives of the Study

1. To examine the impact of mini-grid in Nigerian economy.
2. To presents the opportunities that have been used in mini-grid in Nigeria.
3. To determine the challenges of implementing mini-grids in Nigerian economy systems.
4. To find out how government financing mini-grids Nigeria.

 

1.4    SIGNIFICANCE OF THE STUDY

In this study, the researchers have set out to investigate the potentials of the mini-grid as a driver of the economy. Therefore, this study is expected that it will be of immense interest to the governments at all levels.

To shareholders and interested persons, this study is expected to enkindle their interest the more and they will take note of various recommendations mentioned here and help steer the government and as well ministry of power towards implementing policies on mini-grid.

This study will also help to serve as literature (reference source) to students, individuals or corporate bodies into what to carry out on further research on the potentials of the mini-grid as a driver of the economy.

 

1.5    SCOPE OF THE STUDY

The study is concerns with a seminar on the potentials of the mini-grid as a driver of the Nigerian economy.

 

1.6    LIMITATION OF THE STUDY

There is no study undertaken by a researcher that is perfect. The imperfection of any research is always due to some factors negatively affecting a researcher in the course of carrying out research.  Therefore, time constraint has shown no mercy to the research. The limited time has to be shared among many alternative uses, which includes reading, attending lectures and writing of this research, also distance and its attendant costs of travelling to obtain information which may enhance the writing of this study was a major limitation.

 

 

1.7    DEFINITION OF TERMS

1. a) Electricity: is the set of physical phenomena associated with the presence and flow of electric charge. Electricity gives a wide variety of well-known effects, such as lightning, static electricity, electromagnetic induction and electric current.
2. b) Economic growth: is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.
3. c) GDP: the gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.

 

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