Power Challenges in Nigeria and Renewable Energy
Prior to the early 1990’s, Nigeria had a fairly reliable power supply system derived from coal and hydro-power stations. We were power sufficient as all cities and towns connected to the national grid enjoyed steady, uninterrupted power supply. Manufacturing thrived and citizens could enjoy basic comforts. However, with the rise in income from commodities (especially crude oil), the population rapidly grew, outpacing installed power capacity. This naturally put a strain on Nigeria’s power supply as installed capacity was not upgraded to match population growth.
By the mid 1990’s, the power problem was acute and obvious so much that power outages became all-too frequent. In fact it was so frequent that it became the cardinal focus of political campaigns with each prospective administration promising to generate sufficient power for Nigerians. So far, none have made good on this promise. According to energybizdigest, Nigeria expended over ₦2.7 trillion on power generation between 1998 and 2015 with no significant increase in power supply. In fact, the national power output cap has continued to hover around 5,000MW since 1998 for a population of over 160 million Nigerians! By comparison, Russia generates over 1,000,000MW for a population of about 141 million people!
More on Power Challenges In Nigeria And Renewable Energy
Evidently, the situation in Nigeria is depressing and the never-ending promises of increased power generation by successive governments have left Nigerians very frustrated. Today, Nigeria ranks as the highest importer of generators in the world! Any solution that will break Nigerians free from the curse of the national grid will prove mutually rewarding. Renewable energy holds this promise.
As our market analysis for 2017 revealed, majority of Nigerians are eager to break free from the frustration of the national grid, however, they are deterred by the cost of one-off purchase inverter systems. At Mozabo Engineering Ltd, we have devised a Pay Easy Plan to ensure power independence for such Nigerians who are eager to break free from the national grid.
In summary, the Nigerian Renewable Energy Market is $9.2 billion big according to a report by the Rural Electrification Agency (REA), the World Bank (Energy Team) and the Rocky Mountain Institute (RMI).
Renewable Energy Brands and Prices in Nigeria
Renewable energy in Nigeria which is popularly identified with products like inverters, have been in the Nigerian market for over a decade. Brands such as Luminous, Sukam, Monbat, etc, have become household names in Nigeria. Some of these brands supply batteries, inverters and solar panels together with their installation kits.
Besides the incipient off-grid renewable solutions currently being deployed by the Rural Electrification Agency (REA), there is no official renewable energy structure in the Nigerian renewable energy market. So in every respect, the market is private-sector driven and is open to anyone with sufficient capacity to provide solutions.
Recently, MTN, the largest telecom operator in Nigeria, launched a light-weight (unsuitable for appliances like fridges, ceiling fans, etc) renewable energy solution called Lumos Mobile Electricity (https://www.mtnonline.com/lumos). It comes as a Pay Easy model to MTN subscribers who get to pay a one-time installation fee and a monthly subscription fee that’s paid via subscribers’ mobile phone.
The table below is a compilation of the more common products in Nigeria with the prices for their respective products.
you can also read up on our in debt blog on inverter battery
inverter Battery
| S/N | Brand | Battery (200Ah/12V) |
| 1 | Luminous | N110,000 |
| 2 | Genus | N105,000 |
| 3 | Felicity | N100,000 |
| 4 | Keye | N120,000 |
| 5 | Monbat | N125,000 |
Inverters
| Inverter brand | 850va/12v | 1.5kva/24v | 2.5kva/36v | 3.5kva/48v | 5kva/96v | 7.5kva/120v | 10kva/180v |
| Nexus | ₦45,000.00 | ₦65,000.00 | ₦120,000.00 | ₦145,000.00 | ₦320,000.00 | ₦425,000.00 | ₦560,000.00 |
| Mopower | ₦45,000.00 | ₦70,000.00 | ₦160,000.00 | ₦320,000.00 | ₦600,000.00 | ₦750,000.00 | |
| Luminous | ₦55,000.00 | ₦80,000.00 | ₦120,000.00 | ₦195,000.00 | ₦350,000.00 | ₦700,000.00 | ₦800,000.00 |
| Savpower | ₦50,000.00 | ₦70,000.00 | ₦120,000.00 | ₦185,000.00 | ₦340,000.00 | ₦650,000.00 | ₦750,000.00 |
Solar Panels
The Nigerian Renewable Energy Market
As stated above, the demand and supply of the renewable energy sector in Nigeria is private-sector driven. Demand is primarily driven by frustrated grid-users who are weary of epileptic power supply and outrageous energy bills. Supply is also driven by private sector solutions-providers with little or no regulation by the government – anyone with the requisite capacity can set up a renewable energy business here.
According to the report by the Rural Electrification Agency (REA), the World Bank (Energy Team) and the Rocky Mountain Institute (RMI), the demand for off-grid energy solutions in Nigeria has created a $9.2 billion market. With little regulation and friendly tax regimes, it is a worthy contemplation for any renewable energy investor. This market grows with growing discontent amongst grid-users who seek alternative energy solutions which renewable energy so easily provides. Nonetheless, the vast majority are further trapped by lean resources.
More Info on The Nigerian Renewable Energy Market
Unlike the mortgage-style purchases that are common in Western societies, Nigerians are weaned on one-off buys. That is, we are culturally accustomed to paying all at once for the items we need and while many desire to acquire items and stretch repayment over a period, such repayment plans are uncommon. This has been one of the primary challenges deterring Nigerians from acquiring renewable energy installations.
With a GDP per capita of $2,695, the average middle class Nigerian can ill afford a one-off payment for a 3.5kVA renewable energy installation. Solutions like the MTN Lumos Mobile Electricity as described above, provide some interim remedy but it does not guarantee value for money in the long run because of the very limited range of electrical appliances it can support. Besides, the monthly subscription is perpetual as long as it is in use. Comparatively, a renewable energy installation of the selected/required capacity will attract no further fees or charges after installation and repayment.
Why Us
From 2018 going forward, we are set to roll out a Pay Easy plan for our prospective clients. The plan allows our clients choose a renewable energy product category, say, 1.5kVA or 4.5kVA and we offer them a monthly repayment plan of between six (6) months and one (1) year.
The Pay Easy Plan is informed by the feedback we received from our extensive Digital Marketing Campaign that has been running over the last two years. The feedback from the campaigns revealed that while majority of the prospective clients in our target market desired inverter system installations, not many could afford a one-off payment.
With this plan, together with our digital marketing experience and the quality of our services, we are set to capture a significant share of the USD$9.2 billion renewable energy market in Nigeria. At present, we are in two major cities in Nigeria one of whose demand for renewable energy is the highest and we are working on capturing a third city whose demand is equally high. By FY 2022 we are set to power 20,000 homes.
Partnerships
We are open to synergistic partnerships from local and international players in the renewable energy sector. We are open to distributorship, dealership, franchising and representative (agent) agreements. For international partners who may desire to ship their inventories to us, we have a storage facility.
- Also why we think we are in a good position to capture the market.
- Our blogs and digital marketing experience.
- With well-qualified staff, we currently are in two major cities in Nigeria and are working on the third.
- What we hope to achieve at the end of this is a partner who can ship to us products in advance to enable us to meet the pay small plan.
- Support to clear from customs to our chosen location. And be willing to wait for at least a year for returns of their investments.