• Monday, December 30, 2024
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Power tussle: Niger could cut 70% of Nigeria’s demand 

NERC transfers regulatory oversight to Ogun State

Load shedding and power cuts have worsened in the Republic of Niger since Nigeria disconnected the landlocked country from its electricity grid, and pressure from its people is forcing the government into searching for alternatives.

Supply from Nigeria accounts for 70 percent of the electricity used in Niger. Under a bilateral agreement, Niger buys electricity from Nigeria to augment its own meager production.

Following a military coup that deposed the country’s President Mohammed Bazoum, the Economic Community of West Africa applied sanctions to the coupists, which include disconnecting their power lines from Nigeria’s electricity grid.

Analysts say the action could have unintended consequences.

“The strategic decision of Nigeria to halt its electricity provision appears to be a form of leveraging power, akin to Russia’s gas supply cutoff to Europe. From my perspective, this choice does not align with Nigeria’s enlightened self-interest,” said Wolemi Esan, deputy managing partner of Olaniwun Ajayi, a leading Lagos-based law firm.

Esan said it is misleading to think Nigeria’s power supply to Niger was altruistic. But it’s really done to deter Niger from building a dam upstream on the River Niger. The concern is that if Niger proceeds with its dam project, Nigeria’s downstream flow could be significantly diminished. This situation draws parallels to the challenges posed by the Ethiopian Renaissance Dam on the Blue Nile.

He said: “The repercussions of cutting off electricity supply to Niger are manifold. First, Nigeria has conveyed a strong message to Niger that Niger should pursue energy-independency. Regrettably, this stance will expedite Niger’s Kandadji Dam Project, potentially leading to reduced water flow downstream into Nigeria.

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“Secondly, this decision risks rendering Nigeria’s substantial investment in the development of the 33kv power line to Niger a stranded asset. Thirdly, it will deprive the Nigerian economy of the opportunity to earn the much-needed foreign exchange, through the sale of electricity to Niger by Nigerian power generation companies.”

Life has become tougher in Niger since the Nigerian supply was disconnected, and media reports in the country indicate the soldiers who take over the government are coming under increasing pressure to fix the power situation.

This is going to be a tough call. “Niger has significant energy potential, rich and varied, that is weakly exploited,” Salifou Gado, an engineer, said in a paper published by a local think tank Energy Charter Secretariat Knowledge Centre.

Read also: Coup in Niger saved Nigeria from imminent disaster, says Military govt

Like Nigeria, Niger is blessed with natural resources but they are poorly managed and offer little benefit to its people. Data from official sources indicate that proven reserves of uranium in the northern region of Agadez are estimated at about 450,000 tonnes. Mineral coal reserves located in northern Niger are over 90 million tonnes, with around 70 million tonnes in Salkadamna, in the Tahoua region. It has an estimated one billion barrels of oil and natural gas reserves estimated at about 18.6 billion cubic meters.

But its hydroelectric potential is more extensive. It is estimated at approximately 280.5 megawatts, including 130MW in Kandadji, 122.5MW on the River Niger in Gambou and 26MW in Dyondyonga on Mekrou. Solar energy is possible throughout the territory where the average insolation level is 5 to 7kW/m2/day with an average of 8.5 hours per day. Wind speeds, ranging from 2.5 m/s in the south to 5 m/s in the north, are in favour of wind turbines to pump water, the energy think tank said.

Yet the country has been unable to translate these potentials into assets for its people. The country has two major electricity operators, both public. These include the National Electricity Company founded in 1968 and which has a monopoly on transmission and distribution, and the Coal Company Anou Araren, which produces electricity in a thermal coal power plant.

Frequent load-shedding means that Nigeriens now get barely five hours’ supply of power daily, and this is for those living in the administrative district of Niamey, the country’s capital. Supply is worse in the other seven administrative districts, raising calls for more alternatives to the Nigerian supply.

Isaac Anyaogu is an Assistant editor and head of the energy and environment desk. He is an award-winning journalist who has written hundreds of reports on Nigeria’s oil and gas industry, energy and environmental policies, regulation and climate change impacts in Africa. He was part of a journalist team that investigated lead acid pollution by an Indian recycler in Nigeria and won the international prize - Fetisov Journalism award in 2020. Mr Anyaogu joined BusinessDay in January 2016 as a multimedia content producer on the energy desk and rose to head the desk in October 2020 after several ground breaking stories and multiple award wining stories. His reporting covers start-ups, companies and markets, financing and regulatory policies in the power sector, oil and gas, renewable energy and environmental sectors He has covered the Niger Delta crises, and corruption in NIgeria’s petroleum product imports. He left the Audit and Consulting firm, OR&C Consultants in 2015 after three years to write for BusinessDay and his background working with financial statements, audit reports and tax consulting assignments significantly benefited his reporting. Mr Anyaogu studied mass communications and Media Studies and has attended several training programmes in Ghana, South Africa and the United States

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