Takeaways:
- Energy Efficiency Saves Money: With electricity prices in Nigeria rising to ₦209.5 per kWh, using less energy can help lower electricity bills for households and businesses.
- Energy Efficiency Reduces Waste: Simple changes like using energy-efficient appliances, LED lights, and proper insulation can significantly reduce energy consumption.
- It Helps the Environment: By reducing energy use, we also cut down on emissions, helping Nigeria achieve its climate goals, like becoming carbon neutral by 2060.
- Eases Pressure on the National Grid: Energy efficiency reduces demand, which can help Nigeria’s strained electricity grid provide more stable power.
- Energy Efficiency Is a Solution for the Future: Embracing energy efficiency now will not only save money but also support Nigeria’s long-term energy security and sustainable development goals.
Did you know?
Did you know that saving energy can be just as powerful as generating it? Think of it this way: every kilowatt of electricity we don’t waste is a kilowatt we don’t need to produce. A brief survey of opinions around the suburbs of Abuja show that many homeowners spend an average of N70,000.00 per month to meet their energy needs. For businesses and other heavy power users, the figure is worse, with many closing shops.
Efficient energy use:
However, by using energy more efficiently, we’re not just reducing our bills—we’re also reducing the demand on power plants and the overall strain on the electricity grid. It’s like plugging a leak in a water pipe: the more we prevent waste, the less we need to pump. In essence, the energy we save can have just as much impact as the energy we create, helping to make our resources stretch further and work smarter for us.
Rising energy prices in Nigeria are driven by various macroeconomic factors, such as fluctuating foreign exchange rates and escalating gas prices. According to the Nigerian Electricity Regulatory Commission (NERC), by July 2024, Band A customers, who are guaranteed 20-24 hours of electricity daily, were paying as much as ₦209.5 per kWh. For many, this hefty cost has become a significant financial burden.
With energy costs climbing, Nigeria’s journey toward energy security and economic sustainability should focus on more than just increasing supply—it must prioritize efficiency as well. The International Energy Agency (IEA) projects that energy efficiency could reduce global energy demand by 40% by 2040. In Nigeria, this approach could serve a dual purpose: cutting emissions while also lowering electricity bills and easing pressure on the overstretched national grid.
Rising electricity tariff:
Electricity tariff in Nigeria has been on a steady rise due to external factors, including the devaluation of the naira and increasing gas prices. As mentioned earlier, Band A consumers now face tariffs of up to ₦209.5 per kWh. In this context, inefficient energy use only exacerbates the financial strain on households and businesses.
Small and medium-sized enterprises (SMEs) are especially impacted, as they account for about 70% of industrial jobs and 50% of manufacturing output. Many SMEs still depend on inefficient energy sources, such as diesel generators, which not only inflate operational costs but also harm the environment. By embracing energy-efficient practices, SMEs can cut their energy expenses and contribute to Nigeria’s transition to a cleaner, net-zero future.
Energy efficiency options:
So, what is energy efficiency? Simply put, it means using less energy to accomplish the same tasks, thus cutting down on waste. Small, simple changes—like switching to energy-efficient appliances, using LED lighting, and improving home insulation—can make a big difference. Table 1 shows examples of energy efficiency measures that can be taken by different sectors of the economy.
| Consumer Type | Energy Efficiency Measures | Examples |
| Homeowners | Switch to energy-efficient lighting and appliances, improve insulation, and adopt solar/inverter systems. | LED bulbs, solar-powered lighting, energy-efficient refrigerators. |
| Small Businesses | Use energy-efficient office equipment, LED lighting, and consider solar for power backup. | Solar-powered POS, LED office lighting, inverter-based air coolers. |
| Large Corporations | Conduct energy audits, upgrade machinery, and invest in renewable energy like solar or cogeneration systems. | DC motors, solar panels, energy-efficient HVAC systems. |
| Agriculture | Use solar-powered pumps, biogas, and energy-efficient processing machines.
Implement precision farming to optimize energy and water use, and use energy-efficient greenhouse technology |
Solar irrigation, biogas digesters, energy-efficient milling machines.
Drip irrigation systems, energy-efficient greenhouses, |
| Retail/Commercial | Switch to energy-saving HVAC, LED lighting, and smart meters. Adopt solar for kiosks or small shops.
Retrofit building facades with reflective materials to reduce cooling loads |
Solar kiosks, smart thermostats, energy-efficient refrigeration.
Reflective building facades. |
| Public Sector | Install energy-efficient lighting, HVAC, and solar backup systems in institutions like schools and hospitals.
Adopt net-zero energy building designs for new public projects |
LED in schools, solar-powered hospital backups, motion-sensor office lights.
Net-zero energy buildings |
Table 1: Showing Energy Efficiency Measures by Consumer Type in Nigeria
By adopting these measures, Nigerian consumers can not only reduce their energy consumption but also lower their energy bills. The World Bank’s Nigeria Power Sector Recovery Plan emphasizes the role energy efficiency can play in stabilizing the country’s electricity sector. By cutting down demand, energy efficiency lightens the load on the national grid, which is already stretched thin.
Other benefits:
Beyond the obvious cost savings, energy efficiency is critical for Nigeria’s environmental goals. The United Nations Framework Convention on Climate Change (UNFCCC) outlines that Nigeria aims to reach carbon neutrality by 2060. Energy efficiency can be a key driver in reducing greenhouse gas emissions, helping the country align with global sustainability targets.
In fact, energy efficiency holds the potential to transform Nigeria’s energy landscape especially if SMEs embrace it. As energy prices continue to rise, it provides a practical, cost-effective solution that benefits both consumers and the environment. For households and businesses, embracing energy-efficient practices can significantly reduce energy bills, relieving some of the financial burden caused by high tariffs. Furthermore, by reducing overall electricity demand, energy efficiency can help address Nigeria’s persistent energy shortages and bolster the country’s energy security.
Looking ahead, energy efficiency should not be seen merely as a cost-saving measure. It must be embraced as a strategic approach for Nigeria’s sustainable development objectives. The future of Nigeria’s energy sector may well depend on how quickly consumers, businesses, and policymakers take advantage of the benefits energy efficiency offers.
Summary:
In summary, energy efficiency represents an untapped resource that can help Nigeria save money, reduce emissions, and ease pressure on the national grid. With electricity tariffs continuing to rise, it’s high time for Nigerian consumers to prioritize energy-efficient practices. By doing so, they’ll not only cut their own energy costs but also contribute to the nation’s broader goals of energy security and environmental sustainability. Start prioritizing energy efficiency today, and enjoy the benefits tomorrow.
References:
- International Energy Agency. (2021). Energy Efficiency 2021.
- United Nations Framework Convention on Climate Change. (2022). Nigeria’s Path to Climate Neutrality.
- World Bank. (2020). Nigeria Power Sector Recovery Plan.
- Nigerian Electricity Regulatory Commission (2024). NERC Energy Report.
