Nigerian state governments increasingly focus on leveraging local resources and implementing strategic policies to ensure a reliable and affordable power supply, in a concerted effort to enhance energy access and sustainability.
The Power Sector Seminar themed, “Developing a Sustainable State Energy Market”, featuring key stakeholders from the Nigerian power sector, emphasised the importance of sustainability and efficient utilisation of each state’s unique energy assets.
Participants highlighted the need for collaboration between government, private sector, and investors to unlock the potential of various energy sources such as gas, solar, wind, and hydro.
“Ondo State is one of the few states that have received the order from NERC to regulate their market. We are in transition and optimistic about what our market will look like in the near, medium, and long term,” said Razaq Obe, Ondo state Commissioner for Energy and Mineral Resources, while outlining the state’s journey and plans.
When asked about specific energy targets, such as Lagos’s goal of three gigawatts by 2026, the commissioner emphasised a more measured approach.
“Forecasting and some audacious aspirations will help to get everyone to work together. But for us in the state, we are doing our best to ensure we get things right the first time.
“The state aims to double energy access in the next three to five years, focusing on commercial and urban centers to enhance energy reliability,” he said. “To solve energy problems in the country, you have to go to the fundamentals and ensure that you are self-sufficient.”
Meanwhile, Oladunni Owo, the National President of Women in Energy, Oil and Gas (WEOG) Nigeria, said Nigeria’s diverse energy landscape presents numerous opportunities, from untapped gas reserves to renewable energy sources like solar, wind, and hydro.
“For instance, Lagos boasts 650 billion cubic feet of untapped gas reserves, which can be harnessed to power the state in alignment with the current administration’s drive for gas utilisation,” she said.
The seminar also addressed the pivotal role of government and regulatory frameworks in fostering a conducive environment for energy investments while shedding light on the challenges facing the Nigerian power sector, including aging infrastructure and a lack of trust among potential investors.
Wofai Samuel, Acting Director General of the Nigerian American Chamber of Commerce, stressed the critical role of sustainability in the development of state energy markets. “The advice to all states is to keep sustainability at the forefront. Whatever solution we are leveraging, we must ensure it is sustainable,” she stated.
Samuel further highlighted the importance of each state maximizing its resources, citing examples like Lagos’ gas reserves, which remain largely untapped. This approach, she argued, could significantly bolster the state’s energy supply and economic growth.
Tolu-Tope Dada, Director, Business Development at HaveHill Synergy Limited, highlighted the progress made by states like Ekiti in domesticating energy laws and establishing regulatory bodies to oversee their electricity markets.
He commended the steps taken by Ekiti State in creating a regulatory board and an electricity company, which have set a precedent for other states to follow.
The consensus of the stakeholders is that states must make their energy markets attractive to investors by ensuring commercial viability and providing access to decision-makers.
