Nigeria: Address Off-Grid Market Challenges, Nextier Urges FG, Stakeholders

5 June 2024
Leadership (Abuja)
By Sunday Isuwa

The federal government and stakeholders in the power sector have been urged to address critical issues in the off-grid market so that power can be accessible and affordable to end users in Nigeria.

The call was contained in a Nextier research report titled, "All On Off-grid Energy Business Report," released in Abuja on Tuesday. The report noted that essential infrastructure gaps in visited states create additional challenges.

Presenting the report at the Nextier office, programme manager, Folake Aletan attributed the lack of power supply to insecurity and vandalisation of infrastructure.

She noted that mini-grid development faces challenges from insecurity and vandalism.

According to the report, low literacy levels among consumers hinder their understanding of how to access mini-grid energy services.

Residential customers pay more than productive users, creating an unfair burden, and mini-grid developers struggle to access capital to scale their businesses.

While calling for opportunities for expansion and investments, the report recommends that increased investment in productive users of energy can drive market growth.

Standardisation of solar PV components can improve efficiency in mini-grid installation, and educating customers through ICT channels can empower them to access quality services.

Increased investment in protection schemes and battery storage mechanisms is crucial. Mini-grid developers need to adopt technologies that facilitate scaling and electricity sales.

Streamlining and harmonising existing policies, regulations, and laws is necessary to consider the interests of both mini-grid developers and customers.

Increased incentives for renewable energy and off-grid technology adoption are needed.

"We need more federal government support for off-grid power projects. A cross-sectoral policy to boost overall power affordability and meet climate change goals is recommended."

At the unveiling, the chief executive officer of All On, Caroline Eboumbou, said, "We are thrilled to unveil the All On Off-grid Energy Sector Report today.

"This pivotal study conducted by Nextier gives a comprehensive analysis of the critical challenges and vast opportunities within Nigeria's renewable energy landscape.

"Our commitment to driving sustainable energy solutions is stronger than ever, and this report serves as a vital resource for stakeholders, who, like us, are dedicated to transforming Nigeria's energy sector.

"Together, we can harness the power of innovation and collaboration to ensure a brighter, greener future for all."

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