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Lagos State Ministry Of Energy and Mineral Resources

ENERGY POVERTY IN NIGERIA: FACTS AND FICTIONTHEME: 7 YEARS OF CLIMATE GOVERNANCE IN LAGOS STATE - CELEBRATING SUCCESS STORIES, REVIEWING CHALLENGES AND SETTING FUTURE AGENDA

At The

7th Lagos State Summit on Climate ChangeThursday 23rd April, 2015

Eko Hotels And Suites, VI, Lagos.

By:

Engr. Taofiq Ajibade Tijani, Hon. Commissioner for Energy & Mineral Resources.

WHAT IS ENERGY POVERTYEnergy Poverty is lack of access to modern energy services.

It refers to the situation of large numbers of people mostly in developing countries whose well-being is negatively affected due unavailability of basic Energy.

Also taking into consideration excessive time spent collecting fuel to meet basic needs thereby resulting to using dirty and polluting fuels such as firewood, sawdust, kerosene etc.

So its not only Energy quantity that should be considered in defining Energy poverty but also the quality and cleanliness of the energy used.

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ACCESSIBILITY TO ENERGY

Access to energy is fundamental to improving quality of life and is a key imperative for economic development.

In the developing world like Nigeria, non-accessibility to energy is something undesirable and of common occurrence.

“Access to energy is absolutely fundamental in the struggle against poverty. It is energy that lights the lamp that lets you do your homework, that keeps the heat on in a hospital, that lights the small businesses where most people work. Without energy, there is no economic growth, there is no dynamism, and there is no opportunity”. - World Bank Vice President Rachel Kyte.

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ENERGY NEEDS

Fundamental / Domestic Energy Needs: Associated to human survival and extremely poor situations.

Basic Energy Needs: Required for attaining basic living standards, which includes all the functions in the previous (cooking, heating and lighting) and, in addition energy to provide basic services linked to health, education and communications.

Energy Needs for Productive Uses: When the user requires energy to make a living.

Energy Needs for Recreation: When the user has fulfilled the previous categories and needs energy for enjoyment.

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DOMESTIC ENERGY POVERTY

• Domestic Energy Poverty refers to a situation where a household does not have access or cannot afford to have the basic energy or energy services to achieve day to day living requirements.

This is one of the major problems in Nigeria.

We produce different forms of energy but we still cannot provide basic energy needs to majority of the population.

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PRODUCTIVE ENERGY POVERTY

• Productive Energy Poverty refers to a situation where a community does not have access or cannot afford to have the energy or energy services for productive activities.

This impacts negatively on the economy. Economic activities, especially the manufacturing sector has suffered greatly for lack

of access to stable energy supply services.

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ENERGY POVERTY IN NIGERIA The energy sector is of strategic importance to the Nigerian Economy and a major driver

for growth.

However, Nigeria is currently facing an energy crisis, with only 47% of the populace having access to energy services.

Despite the importance of MSMEs to the GDP (contributes between 50% - 70%), they are faced with acute shortage of energy services.

Lack of modern energy services is identified as one of the most important barriers for development and expansion of manufacturing and services.

The equitable provision of services for rural growth and employment is hampered by a lack of access to energy services

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ENERGY POVERTY IN NIGERIA The actual available capacity of electricity is between 3,000-4,000 MW out of an installed

capacity of 8,000MW

This is against a current demand of 16,000MW and a plan of 190,000 MW by Year 2025

Despite granting 20 IPP licenses with a capacity for additional 10,000 MW, none of the projects have been realised due to various factors.

A large percentage of MSMEs (and the populace) have invested in their own power generation at a high cost to business.

These self generation approach with the rate of fuel consumption i.e. Diesel, etc; are not economical and have negative impacts on the environment.

The grim picture of the energy situation in the country has therefore called for innovative options to meet the demand.

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CHALLENGES TO PROVISION OF ENERGY

The provision of modern energy services is recognized as a critical foundation for

sustainable development, and is central to the everyday lives of people. The global

energy system faces 3 major strategic challenges in the coming decades:

The growing risk of disruption to energy supply.

The threats of environmental damage caused by energy production and use and;

Persistent energy poverty.

The first two challenges have attracted attention from the energy community as

they border mostly on energy development, however, these as lead to the energy

community giving more attention to reducing Energy Poverty as a key factor to

energy growth.

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SOLUTIONS FOR ENERGY POVERTY EXPERIENCE IN LAGOS

Meeting basic human needs, such as food and shelter, must be at the heart

of any strategy to alleviate poverty. Modern energy services help enable

those needs to be met.

LPG INITIATIVE

INDEPENDENT POWER PROJECTS (CAPTIVE ENERGY GENERATION)

RENEWABLE ENERGY INITIATIVE

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LPG INITIATIVE

The Ministry in collaboration with the Lagos Chamber of Commerce & Industry is promoting the introduction of LPG to 1 million homes in Lagos State in 5 years, 5 million in 10 years

Introduction of LPG into all Taxis and Government vehicles in Lagos State in 3 years

Introduction of LPG into all public transport buses and staff buses in 5 years.

Introducing piped gas and gas meters in government and private estates in the State.

Establishment of skid-mounted plants installation.

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PICTURE OF LPG SKID MOUNTED PLANT

Epe LPG Skid Mounted Plant Isolo LPG Skid Mounted Plant

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His Excellency Mr Raji Fashola launches Eko Gas Scheme at Masha Street Surulere. July 2013

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• FREE EKO GAS CYLINDER DISTRIBUTIONIn order to encourage the use of LPG amongst the citizenry, the Ministry commenced the free distribution of 3kg and 6kg

cylinders across the 57 LCDAs/LGAs under the free Eko Gas cylinders distribution exercise. Presently the exercise has been concluded across all 57 LCDA/LGA’S with a total of 20,000 cylinders distributed.

Her Excellency, Wife of the Governor of Lagos State Abimbola Fashola presenting free gas cylinders to representative of the 57 Executive Secretaries of Local Government and LCDA in Lagos at a free gas cylinder distribution and sensitization programme

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LAGOS STATE GOVERNMENT ELECTRICITY SUPPLY INITIATIVES

“As the bedrock of any development agenda, this administration has always considered the provision of

stable power supply as being of the utmost priority. The provision of potable water, functional

telecommunication services, uninterrupted information and communication services, security operations,

traffic management, healthcare and education are all dependent on the availability of constant and stable

electricity…the people of Lagos State have been deprived of one of the essentials of decent living;…for too

long. This problem has its roots amongst other things in the lack of accurate data as to the

actual power/energy requirements of the people of Lagos State.”

- Mr. Babatunde Raji Fashola (SAN)

Governor of Lagos State

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LAGOS STATE GOVERNMENT ELECTRICITY SUPPLY INITIATIVES

In accordance with the Power, Agriculture, Transport and Housing (PATH) Initiative, LASG key priorities and objectives are as follows:

To provide reliable electricity supply that will stimulate social and economic growth.

To reduce self generation through generating sets in an effort to cut down on environmental pollution

To improve lighting levels to appropriate international standards thereby reducing the occurrence and perception of crime.

To reverse urban decay and perceptions of environmental neglect.

To reduce maintenance costs by having a reliable power supply source.

To provide comprehensive technical training for young people in the power, public lighting and energy development.

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LAGOS STATE GOVERNMENT ELECTRICITY SUPPLY INITIATIVES

In addition to national grid supply, LASG has, through Public-Private-Partnership (PPP) arrangement,

commissioned and/or built the following Integrated Power Plants (IPP) to generate and distribute its own

electricity:

When the LASG IPPs are complete, these should bring the total to 48.5 MW. These completed power plants

will provide 24/7 supply availability to state facilities for critical social services and selected catchment areas

in the State.

Name Capacity (MW) Status

Akute 12.5 Fully Operational

Island Power 10 Fully Operational

Alausa 10.4 Fully Operational

Mainland Power 8.8 Fully Operational

PIPP 6.6 Fully Operational

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RENEWABLE ENERGY INITIATIVES

In line with keeping to the global trend of reducing the emission of GreenHouse

Gases (GHG) through energy activities, the MEMR working with its agency LSEB

embarked on the following Renewable Energy pilot projects:

Solar Street lightning

Solar Water Pumps

Solar Farms

Solar For Schools and Primary Healthcare Centres

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PILOT SOLAR STREET LIGHTING AT THE LSEB

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PILOT SOLAR STREET LIGHTING AT THE IDOWU MARTINS STREET, VICTORIA ISLAND

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SOLAR WATER PUMP AT THE LSEB

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CONCLUSIONS

Energy Poverty in Nigeria is a FACT and not a FICTION. To reduce this, strong

political will and commitment on the part of the government will be crucial while decisive

policy actions are needed urgently as part of the broader process of human development.

1. The cost of providing assistance to the poor and their communities may turn out to be far less than that of dealing with instability and insecurity that poverty creates.

2. Improving energy services for poor households in developing countries remains one of the most pressing challenges facing the development community.

3. An ‘Energy-Poverty Alleviation Fund’ would be needed to help provide modern energy services to households and communities that need it most.

4. The implementation of this funding mechanism would result in a climate-friendly outcome i.e. reduction of the traditional household use of biomass-based fuels; while providing immense socio-economic benefits to the poor.

5. This would help reduce greenhouse gas emissions, and therefore is very much consistent with the United Nations Framework Convention on Climate Change.

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Thank you for ListeningEko Oni Baje O…!

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