Nigeria's Energy Gap Disgraceful, Households, SMEs Get Four Hours of Electricity Daily - Shell

26 April 2019

Managing Director of Shell Nigeria Exploration and Production Company, SNEPCO, yesterday, described Nigeria's energy gap as disgraceful.

Speaking at the 2019 Oloibiri Lecture Series and Energy Forum, OLEF, organized by the Society of Petroleum Engineers, SPE, Ojulari also lamented that 70 persons of households and small businesses in Nigeria hardly get more than four hours of electricity daily.

This, he said, was as a result of the fact that 70 per cent of electricity generated by power companies is lost before it gets to the consumers.

He explained that this translated to about 120 million people without electricity, noting that only India has such a larger off-grid/bad-grid population.

Ojulari disclosed that the gap is currently filled by about 60 million environmentally unfriendly diesel/petrol generators, adding that the energy gap poses negative consequences for Nigeria's productivity, competitiveness, employment, security, food security, nutrition, environment, health and education.

He said, "The gap in terms of energy supply is disgraceful. The energy gap in Nigeria is the foundation for so many of the country's economic and social development problems. In most countries, when you talk about energy security they are talking about the health of their people, education of their people, for their children and for their future. They are talking about being a competitive country where people can invest. They are talking about the environment, productivity and food security among others.

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"Energy is not standing alone. Our industry is not about producing and exporting oil, it is about how we impact our societies."

He blamed the loss of electricity generated on ageing equipment, funding problems and sometimes, vandalism.

He, however, noted that the gap presents a massive opportunity for large scale on the grid and small scale off-grid investments.

"Technologies and business models exist for a cleaner, affordable and scalable solutions. Alternative energy solutions can have short term financial and social impact for investors on livelihoods and economic activity," the Shell boss noted.

Also speaking, Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr Maikanti Baru, noted that despite abundant oil and gas reserves, Nigeria experiences shortages in electric power.

According to him, based on available data, Nigeria's energy consumption was projected to rise from six gigawatts (GW) into 2015 to 30 gigawatts (GW) by 2025, noting that to achieve this, the country would need aggressive development of gas and renewable projects.

Baru further disclosed that the Ajaokuta-Kaduna-Kano, AKK, pipeline, that was proposed to convey gas from the Niger Delta, through Ajaokuta, to Kaduna and Kano, would be completed by 2022.

He added that the 1.1 billion standard cubic feet, SCF, of gas, 342 kilometres by 36 inches Escravos-Lagos Pipeline System, ELPS II, had achieved 97 completion, noting that the remaining 70 kilometres of the pipeline would be completed by the middle of 2019.

"The 130 kilometres by 48 inches/36 inches Obiafu/Obrikom-Oben, OB3, a pipeline with the capacity to link the eastern and western parts of them with about two billion SCF of gas daily, was at 92 per cent completion and would also be concluded by the middle of the year.

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