The shocking yearly cost of petrol and generator maintenance for Nigerians is $10 billion, according to a recent analysis released by Sustainable Energy for All (SEforALL).
Despite major obstacles and environmental concerns, this enormous expense highlights the nation’s overwhelming reliance on fossil fuels for energy generation.
The high cost of fuel and generator (genset) maintenance severely burdens homes and companies, impeding economic growth and development, according to a paper produced in collaboration with the Lagos State Government.
“Nigerians reportedly spend $10 billion (N7.6 trillion) per year on fuel and maintenance for small petrol generators,” SEforALL stated in its most recent paper, “Beyond Gensets: Advancing the Energy Transition in Lagos State.”
According to the survey, the average small business in the largest economy in Africa spends between N20,000 and N40,000 a month on fuel alone.
SEforALL states, “this is the largest cost to many small and medium enterprises (SMEs) in their operations.”
One of the biggest economies in Africa, Nigeria, has long suffered from an unstable power supply, which has forced its people and companies to rely on self-generated electricity.
The nation of West Africa confronts serious energy-related issues, such as limited access to electricity and clean cooking fuel and rising petrol prices.
According to SEforALL, “the cost of electricity for petrol generators is 83 percent higher than the cost of electricity from the grid.”
The research also claims that the yearly carbon dioxide emissions from Togo, Rwanda, and Gabon are 9.8 million, 10.6 million, and 10.2 million, respectively.
According to the report, Lagos State alone has a genset capacity of almost 19 gigawatts (GW), significantly more than the 12.2 GW installed capacity of the national grid.
“This reliance has led to a significant environmental burden in addition to positioning Lagos at the forefront of Nigeria’s power generation challenges,” the report stated.
According to the paper, Nigeria’s unstable energy grid – which has long failed to fulfill demand due to inefficiency, underinvestment, and maintenance issues – is largely to blame for the city’s reliance on gensets.
“By understanding and working to mitigate the impacts of diesel and petrol generator sets, we are taking decisive steps towards a cleaner, more sustainable energy future for Lagos and Nigeria as a nation,” he explained.
