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Future demand for electricity in Nigeria

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  • Ibitoye, F.I.
  • Adenikinju, A.

Abstract

Availability and reliability of electricity supplies have always been vexed issue in Nigeria. With an estimated population of 130 million people in AD 2005, Nigeria is the most populous country in Africa and belongs to the group of countries with the lowest electricity consumption per capita in the continent. Nigeria is also ranked among the poorest countries in the world. This paper examines the likely trend in the demand for electricity over the next 25 years under the assumptions that (i) there is a rapid economic development such that Nigeria transforms from low- to middle-income economy during this period, (ii) Nigeria meets the millennium development goals (MDG) in AD 2015, and (iii) the country achieves the status of an industrializing nation. For these to happen, this paper projects that electric-power generation will have to rise from the current capacity of 6500Â MW to over 160Â GW in AD 2030. This level of supply will be significant enough to increase the per capita electricity consumption to about 5000Â kWh per capita by the year 2030. Even then, this just compares with the AD 2003 per capital consumption of some industrializing countries. Analysis of the level of investment required to meet the projected power demand indicates that annual investment cost will rise from US$3.8 billion in AD 2006 to a peak of US$21 billion in AD 2028. The total investment stream over the 25 year period comes to US$262 billion or roughly US$10 billion per annum.

Suggested Citation

  • Ibitoye, F.I. & Adenikinju, A., 2007. "Future demand for electricity in Nigeria," Applied Energy, Elsevier, vol. 84(5), pages 492-504, May.
    • Handle: RePEc:eee:appene:v:84:y:2007:i:5:p:492-504
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    1. World Bank, 2004. "The Little Data Book 2004," World Bank Publications - Books, The World Bank Group, number 13919.
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