What are the major causes of energy crisis in Nigeria?

You would not think that a country that is rich in natural oil and gas reserves would not have any problems with energy, but that is not the case in Nigeria. The country itself is the biggest oil producer in Africa, but there is still a couple of problems that have led up to the current energy crises throughout the region.

It is crazy to think that until the recent government changes that the energy crisis was not a top priority. Let us take a look at what those issues are and see if there is an effective way to fix it.

  • Lack of Infrastructure: Due to the lack of spending to keep up with the basic roads, buildings, and power supplies, an energy crisis has set into Nigeria that is causing residents to go without power 85% of the time. The government entities in the past decided it would be a clever idea to spend their countries money in other ways. Now it is up to the current government to start getting caught up. One step at a time that will probably take rebuilding the entire countries infrastructure.
  • Lack of Equipment: Another part to the point above is that the equipment required to monitor and service the people of the country have also been neglected. Neglected to the point of needing to be updated and replaced. It is hard to collect the tariffs when the machine will not supply a steady energy supply to the consumers. The bottom line is that the investors that have put their hard-earned money into the energy suppliers of the nation state that they are not getting a return on their investment. If they have not pulled out from investing, they will soon if some changes are not made.
  • Off The Grid Living: Studies have shown that around 40% of the population living in Nigeria are off the grid. The villages and farms are in rural areas that do not have easy access to the power grids, even if there was enough advanced infrastructure to deliver it. You can try to go online and compare energy in QLD to see if there is a more feasible way to get steady power to your home.
  • Generators: You can probably guess that the main way that the people living off the grid is to have diesel powered compressors to supply their homes and businesses with power. The problem being that as the demand goes up, so does the cost. This makes it hard for people to pay for it, so they go back to square one. Living off the grid with no way to have power.

It all boils down to infrastructure, which means money. The United States has offered to help build a system that would allow Nigeria to begin catching up with the rest of the world. An economy that can sustain itself will be the ultimate goal by going one step at a time.

The financial issues that surround the ability of rebuilding the infrastructure of the country is substantial, which is why they are still falling behind. With the help of the five billion that the World Bank is aiding them with the infrastructure in the next couple of years will begin to approve. But it is a long road to go, and it is not an issue that can be fixed overnight.

After the infrastructure starts to catch up with the needs of the country then the services will need to be billed to the consumers in an effective way that pays for the production, pays for the employees that run the systems, pays the investors a better return, and of course puts some money into the pockets of the people running the companies. Overall, once this is reached, the economy of Nigeria will begin to improve, and the power crisis will come to an end.





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