RENEWABLE ENERGY POLICY IN NIGERIA; POLICY CHOICE FOR ENERGY CONSUMPTION

1. RENEWABLE ENERGY POLICY IN NIGERIA; POLICY CHOICE FOR ENERGY CONSUMPTION ECHETA, D.O. , OJIUKO, A.A , & MIRIKWEH, I.R.

2. Introduction • Economies world over depend on energy to advance economic growth and development. • In the frame work of globalization, Nigeria is not an exception to energy demand responses and policies. • To Gbadebo and Okonkwo (2009) Nigeria is seen as one of the greatest developing nations in Africa with highly endowed natural resources including potential energy resources. • Good energy policy is expected to have feed back effect on the growth pattern of any economy, be it developed or developing

3. Rationale and motivation for the paper • The black gold is a depleting asset and would exhaust in the near future. • Hence the need to prosecute energy related policies to mitigate the eventual depletion of the crude oil. • Orhewere and Macheme (2011) citing Masih and Masih (1996) contend that growth in energy demand is an input in to the level of economic development of any nation.

4. Relevance of the study • The traditional non renewable products have a lot of health related issues leading to skin cancer and other health challenges. • The objective of this paper is to provide alternatives to traditional energy sources and to move to renewable energy which expectedly is more efficient, cleaner and in the long run affordable to final consumers.

5. Organization of the work • Section one is introduction. • Section two has the literatures to support the answer to the questions raised. • Section three deals with renewable energy and the Nigerian economy. • Section four x-rays interventions for sustainable renewable energy • while • Section five deals with conclusion and recommendation.

6. Review of literature • Energy policy is important in any economy if the policy makers have the intentions of driving growth. • However, the most remarkable advancement by the Nigerian government was in 2003, when the Energy Commission of Nigeria (ECN) rectified and assented to the National Energy Policy (NEP) programme.

7. This framework according to Gahlawat, Harper, Hendericks, Okoye, Pankow and Serpico (2009) outlines the government’s policies, strategies and objectives in regard to energy use and development. • To Lukman (2003) Nigeria’s Energy Policy is expected to promote the harnessing of all viable and potential energy resources so as to achieve optimal energy mix.

8. Why the Use of Renewable Energy • The importance of renewable energy is captured in the NEP objectives which are geared towards diversification of renewable energy use to facilitate economic growth. • The major highlight of the objectives of the National Energy Policy are as follows; as contained in Gahlawat et al (2003) citing Lukman 2003

9. To ensure the development of the nation’s energy resources with diversified energy resources option for the achievement of national energy security and an efficient energy delivery system with an optimal mix. • To ensure and guarantee adequate, reliable and sustainable supply of energy at appropriate costs and in an environmentally friendly manner, to the various sectors of the economy, for national development.

10. To guarantee increased contribution of energy productive activities to national income. • To guarantee an efficient and cost effective consumption pattern of energy resources. • To accelerate the process of acquisition and diffusion of technology and managerial expertise in the energy sector and indigenous participation in energy sector industries, for stability and self-reliance.

11. To promote increased investments and development of the energy sector industries with substantial private sector participation • To ensure a comprehensive, integrated and well informed energy sector plans and programmes for effective development.

12. To Gahlawat et al (2009) quoting Lukman (2003) NEP states the goal of providing 75 percent of the population with electricity by 2020. Hence, the need for diversifying the energy supply sources to achieve a near adequate mix.

13. To collaborate internationally in energy trade and projects development in both African region and the world at large. • To use the nation’s abundant energy resources to promote international co-operation.

14. Potentials of Renewable Energy in Nigeria and Policy Choice. • Nigeria is endowed with large deposits of natural gas energy to the extent that the quantity of natural gas is at least twice as much as the oil. • To EIA (2004) Natural gas has the potentialities of dominating emerging market as its demand is increasing in folds. • Thus, the need to x-ray each type of renewable energy choice available to Nigeria. • Hydro-power • Biomass • Wind Energy • Solar Energy

15. Renewable Energy and the Nigerian Economy • Kevelaltis et al (2008) have observed that if these sources are fully harnessed, it could lead to potentially solving Nigeria energy accessibility needs. • In line with global best practices, renewable energy alternatives are quite attractive to mitigating Nigeria’s own problem of energy accessibility

16. According to Aina (1998) World Health Organization reports that a cook using fuel wood the household can inhale an amount of benzopyrene equivalent to 20 packets of cigarettes a day. • Consequently, the road map to energy sustainability and accessibility in Nigeria is renewable energy.

17. Policies to Harness Energy Related Issues • Nigeria is a signatory to the Kyoto protocol and rectified other conventions relating to energy issues globally. • As is captured in the last phase of US President Obama in his presidential campaign, renewable energy and energy efficiency is important.

18. As is captured in the last phase of US President Obama in his presidential campaign, renewable energy and energy efficiency is important. • Paradoxically, U.S withdrew from Kyoto protocol almost immediately President Bush declared his administration would not require industry to reduce carbon dioxide emission. • According to Nnamocha and Echeta (2010) America refused endorsing the protocol because she is the highest gas emitter globally.

19. . In the words of Correa do Lago • “if rich countries which have the financial means, have technology, have stable population, already have a large middle class, think they cannot reduce (emissions) and work to fight climate change, how can they ever think that developing countries can do it? That is why the Kyoto protocol has to be kept alive”

20. However, in 2012 the U.N climate change conference in Doha, Qatar was targeted at deciding the future of the Kyoto protocol. • According to Gwynne (2012) the UN framework convention on climate change aims to promote emissions reduction that will hold global temperature increase to below 2 degrees Celsius higher than pre industrial levels.

21. . Interventions for Sustainable Renewable Energy in Nigeria • Targeting Electricity Generation • Only 40 percent of Nigerians have access to electricity (EIA, 2007). • Rehabilitate – Operate – and Transfer (ROT) • ROT was targeted at Afam and Sapele power stations as according to Mordi, Englama and Adebusuyi (2010) the two stations were NEPA’s most run down power stations and would require millions of dollars from government finances for rehabilitation.

22. Independent Power Plants (IPP) • The federal government of Nigeria also initiated a programme directing all oil joint venture to assist in the development of power sector in Nigeria by investing in IPPs. • Establishing Quantity and Price • To large extent energy efficiency programmes could be achieve through the fixing of quantity and price of energy by government.

23. Conclusion • This paper is aimed at x-raying renewable energy policy in Nigeria, policy choice for energy consumption. • The emphasis here is that no economy can grow without harnessing adequately its energy potentials . • Thus, the move to cleaner energy is encouraged towards coping with international best practices.

24. Recommendation • Nigerian government should begin implementing energy policy that will attract both local and international collaborators and actors. • Issues of energy accessibility should not be taken for granted. • With reference to Kyoto protocol and Doha convention, Nigerian government should continue to support international agreements that would discourage gas emissions.

25. Power holding company of Nigeria (PHCN) should be made to face litigations. • The moral hazards associated with their operations should be checked. • For satability of renewable policy choice increase in research and development is required. • Attention must shift from non-renewable energy sources to renewable energy. • Energy efficiency and conservation campaign should be enhanced.

26. Governments at all levels should ensure that our local environment is protected. • Fuel wood though renewable has some implication on the environment, hence the need for government to implement policies that will advance solar energy investment. • Ultimately, there is need for increased funding in the energy sector. Governments at all levels should equally be sincere in this regard.

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