Renewable Energy Policies in Nigeria

Research sponsored by
Social Responsibility Managers (SRM)
February 2015

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Renewable Energy
Elabban et al. (2014: 749) defines renewable energies as energy sources that are continually
replenished by nature and derived directly from the sun (such as thermal, photo-chemical, and
photo-electric), indirectly from the sun (such as wind, hydropower, and photosynthetic energy
stored in biomass), or from other natural movements and mechanisms of the environment (such
as geothermal and tidal energy). The energy directly generated from these sources can be
converted into other forms of energy, and then used for services across homes, business
establishments and public facilities. These services include lightning, heating and transportation.
Use of Renewable Energy in Nigeria
The major renewable energies available in Nigeria are solar energy, wind energy, marine energy,
biomass and hydropower energy (Sambo, 2010). There is abundance of these energy sources in
the country and some of them, particularly solar energy and biomass have been utilized
indigenously for a long period of time (Karekezi, 2002; Bugaje, 2006). Farmers and local food
processors make use of solar energy to dry harvested produce and processed food items to
enhance longevity in storage and shelf life. Biomass is also commonly used domestically for
cooking and heating; while wind energy is used in winnowing (i.e. separating grain from chaff).
However, in the context of provision of modern energy services such as electricity and thermal
applications like, cooling, heating and drying, these energy sources are being underutilized to
meet the energy demand in the country (Ohunakin, 2010). A major potential for use of renewable
energy in Nigeria is in provision of renewable electricity through conversion of renewable energy
into electrical energy. According to Oyedepo (2012), Nigeria experiences a deficit in meeting the
electricity demand of its population, also Mohammed et al. (2013) note that only 46% of Nigerian
residents have access to electricity. The occurrence of this deficit in a developing country with
distinctive high population and poverty index (World Bank, 2013) further highlights the importance
of exploiting Nigerias abundant renewable energy sources for the benefit of its citizens.

Renewable Energy Policy in Nigeria

Policies targeted at meeting energy demands
There have been some commendable policy efforts to promote, develop and ensure use of
renewable energy in Nigeria. In 1979, the Energy Commission of Nigeria (ECN) was legally
established, and saddled with the responsibility of developing energy policies and outlining plans
for realization of the policy provisions. Ten years after its creation, the relevant resources and
structure were put in place for the commission to perform its designated functions (ECN, 2012a).
Based on the prevailing discourse on energy in the international arena at the time of establishment
of the Energy Commission, it is likely that the successful formation and eventual functioning of
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ECN is as a result of resolutions made at the international policy level, mainly at in the United
Nations (UN), and Economic Community of West Africa (ECOWAS). In tackling the oil crises of
the 1970s and addressing energy poverty in developing countries, the United Nations organized
a conference on new and renewable sources of energy, which held in Nairobi in August 1981
(Gherab, 1981). Part of the recommendations from the conference as stipulated in the Nairobi
Programme of Action for the Development and Utilization of New and Renewable Sources of
Energy, is the creation of national focal points to facilitate implementation of the Programme of
Action, and this is also in line with the stated functions and responsibilities of Nigerias Energy
Commission, ECN (UN, 1981; ECN, 2012b). Also, in 1982, and perhaps following the
recommendation from the 1981 UN Nairobi conference, West African countries signed the
ECOWAS Declaration, which mandated all ECOWAS member states to setup energy
commissions that will be responsible for coordinating and supervising all energy functions and
activities (ECN, 2012a: 1). ECN can therefore be seen as a policy body setup in line with these
international policy decisions.
As a policymaking body, ECN has developed the National Energy Policy (NEP), and has been
able to secure approval of the policy from the parliament and Presidency. The policy was drafted
and approved in 1993 and 2003 respectively. It covers all the sources of energy accessible to the
country, including fossil fuels (oil, natural gas, tar sands and coal) and renewable energy sources
(solar, wind, biomass and hydropower). It states the strategies for effective and efficient
coordination of the overall energy sector, and outlines how the diverse energy sources will be
exploited sustainably in pursuit of Nigerias economic development. It also proposes short,
medium and long term measures for exploiting the energy sources. In outlining these measures,
the countrys policy direction and implementation plan, for promotion and use of renewable energy
sources are clearly presented, and these provisions readily serves as credible information that
will be useful for research purposes relating to renewable energy policy in Nigeria.
Drawing from the policy objectives stated in the National Energy Policy document, ECN also
drafted a National Energy Masterplan (NEMP) after the approval of NEP (AllAfrica, 2015). Until
recently, this document is rarely mentioned in academic papers, government documents,
newspaper articles and other relevant publications, but, a recent effort led by ECN and some
international funding partners is hinged on reviewing the content of the document. In 2005, with
the support of UNDP, ECN drafted the Renewable Energy Masterplan (REMP) which is based on
the policy direction and strategies stipulated in the National Energy Policy for use of renewable
energy in the country (Sambo, 2010). REMP also forms part of the wider NEMP, and it has since
been submitted to the parliament for approval. In summary, three major policy documents, namely
NEP, NEMP and REMP have been developed by the Energy Commission, with one of them,
NEP, having an approved status while the other two, are awaiting approval from the parliament
and Presidency.
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Still based on the provisions from the National Energy Policy document, the government body
with the overall oversight function for Nigerias energy sector, the Federal Ministry of Power and
Steel, also developed policy guidelines and an action plan for the use of renewable energy in the
electricity subsector. Two documents titled, Renewable electricity Policy Guidelines and
Renewable Electricity Action Program (REAP) were prepared in 2006, and they detail how each
of the major renewable energy sources will contribute to electricity generation in the country. They
also clearly state the federal governments intention for promoting investment in renewable
electricity through plausible initiatives, including removal of fossil fuel subsidies, special tariff
regime for renewable electricity and low interest loans for Independent Power Producers (IPP) of
renewable electricity. It is not clear if these documents have been forwarded to the relevant
approval bodies i.e. parliament and Presidency, but the Policy Guideline document is referred to
as a draft document within the body of text, and this is an indication that it is yet to be approved.
Another document that presents a policy statement for use of renewable energy for meeting
energy demands, is the Vision 2020 Energy Sector Report. Upon the election and swearing in of
a new government in 2009, the then President proposed a new vision for the country, tagged
Vision 2020. The vision is targeted at realizing economic transformation, and making Nigeria one
of the top 20 economies in the world by the year 2020. In a bid to ensure its actualization, detailed
goals, strategies and implementation roadmap plans were developed in 29 thematic areas,
including energy. Vision 2020s energy policy addresses the major renewable energy sources in
Nigeria as part of the major strategies put forward for achieving the stated vision. It proposes that
the nations energy mix should comprise renewable energies in order to reduce reliance on fossil
fuels, make use of more economically stable source of energy, and guarantee energy security.
The document presents the vision statement for the countrys energy sector, and this is quoted
below By 2020, the energy sector will be the major engine of the nations sustainable, social, economic
and industrial growth, delivering affordable and constant energy supply efficiently to other sectors
of the economy (Federal Government of Nigeria, 2009: 10)

Policies targeted at addressing environmental challenges

Beyond its ability to meet energy demands, renewable energies also play a key role in addressing
environmental challenges, particularly in mitigating climate change. As such, use of renewable
energies is also situated in climate change discourse. Nigeria participates in the international
climate change policy regime under the auspice of the United Nations framework Convention on
Climate Change (UNFCCC). As part of its obligations, it has submitted two national
communication reports to the convention. The first communication report was completed and
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submitted in 2003, while the second was received by UNFCCC in 2014. These documents
highlight the major sources of greenhouse gas emissions and the possible scenarios for reducing
the emissions. In proposing the possible options for reducing emissions and mitigating climate
change in Nigeria, the first and second national communication documents clearly identify use of
renewable energies as a viable mitigation option that can yield considerable emission reduction
results.
In addition to the national communication documents, UNFCCC also accepts policy documents
on mitigation (National Appropriate Mitigation Actions - NAMA), and adaptation (National
Adaptation Programmes of Action NAPA) from governments of developing countries. In the
event of Nigerias submission of these documents to the UNFCCC, they can serve as significant
source of information on renewable energy policies in Nigeria.
Within the UNFCCC, there is an international policy mechanism, the Clean Development
Mechanism (CDM), which is aimed at facilitating transfer of clean technologies including
renewable energy technologies, from developed to developing countries. As a signatory to the
UNFCCC, and being a developing country, Nigeria is identified as a beneficiary of the CDM, and
it has setup an internal coordinating process within the country for active participation in the policy
mechanism. Based on its participation, changes to the CDM will likely impact on Nigeria, and as
such, the CDM can be recognized as a viable aspect of Nigerias renewable energy policy
structure.
Still in a bid to address environmental challenges, the government agency with the responsibility
of managing the oil and gas sector in the country, Nigerian National Petroleum Corporation
(NNPC), developed a policy addressing one of the renewable energies that is readily accessible
and abundantly available in Nigeria i.e. biomass. The NNPC in 2007 produced the Nigerian Biofuel Policy which is focused on incorporation of ethanol generated from biomass into the volumes
of gasoline that are sold in the country. The policy provides for development of a special fuel, the
E10, representing a combination of 10% fuel ethanol and 90% gasoline. Positioning the NNPC
as buyer of last resort and with the provision of tax exemptions, the policy offers remarkable
incentives for local processing of biomass and production of biofuels. Also, the implementation
strategy for the policy is presented in the document, and this highlights what will be done in the
short and long term to ensure the sustained use of biomass for production of bio-fuel that can be
mixed with gasoline, and generate the new product. With biomass being one of the major
renewable energies prominently listed in the National Energy Policy and the Master plan
documents, the Nigerian Bio-fuel Policy document therefore serves as a substantial source of
empirical information for research into renewable energy policies in Nigeria.
A summary of all the renewable energy policy documents highlighted above is given in the table
below
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Policy Document

Year
Produced

Developed by

Status

Accessibility

National Energy Policy

1993

Energy
Approved
Commission of (2003)
Nigeria

Online

Renewable Energy
Master plan

2005

Energy
Submitted.
Commission of Not
Nigeria
Approved

Online

National Energy
Master Plan

2006

Energy
Under review Unavailable
Commission of (2014)
online
Nigeria

Renewable Electricity
Policy Guidelines

2006

Federal
Ministry
Power
Steel

Renewable Electricity
Action Program

2006

Vision 20:2020

Draft

Online

Not clear

Online

2009

Federal
Approved
Government of
Nigeria, Vision
2020

Online

Nigerian Biofuels
Policy

2007

Nigerian
National
Petroleum
Corporation
(NNPC)

Not Clear

Online

First National
Communication to
UNFCCC

2003

Federal
Approved
Government of
Nigeria,
Department of
Climate
Change

Online

Second National
Communication to
UNFCCC

2014

Federal
Approved
Government of
Nigeria,
Department of

Online

Federal
Ministry
Power
Steel

of
and

of
and

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Climate
Change
10

Clean Development
Mechanism Policy in
Kyoto Protocol

1997

United Nations Approved

Framework
Convention on
Climate

Online

Change
(UNFCCC)

From the above it can be seen that there exists noteworthy efforts at developing policies aimed
at promoting the use of renewable energy in Nigeria. However, from the total of eight national
policy documents identified, only two have attained approved status. This situation is likely to
present an inevitable challenge to any research study that may be considering analyzing the
implementation process and outcome of policies. Another observation from the information
presented above is that the development of the policy documents seems to have emerged from
diverse origins. In addition, the delay in approval of the dedicated Renewable Energy policy
document i.e. REMP, despite its submission to the relevant approval body more than nine years
ago is a significant point, as this delay leaves Nigeria with no dedicated renewable energy policy.
Based on these observations, it is my thinking, that considering and analyzing why Nigeria lacks
a dedicated and coordinated renewable energy policy framework can be the pragmatic focus for
conducting research on renewable energy policies in Nigeria.

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REFERENCES
AllAfrica, 2015. Nigeria: UNDP, Govt, Stakeholders Mull New Energy Master Plan, Available at:
http://allafrica.com/stories/201501300902.html [Accessed 19 February 2015].
ECN 2012a. About ECN, Available at:
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[Accessed 19 February 2015].
ECN, 2012b. Functions and responsibilities, Available at:
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Engineering and Applied Sciences 5(2): 171-177.
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Sambo, A.S., 2010. Renewable energy development in Nigeria, Paper presented at the World
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energy, Available at: http://www.un.org/documents/ga/res/36/a36r193.htm [Accessed 19
February 2015].

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World Bank, 2013. Data: Nigeria, Available at: http://data.worldbank.org/country/nigeria

[Accessed 19 February 2015].

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