Impact of Solar Energy on Nigeria’s Electricity Supply Challenges

Electricity Power supply in Nigeria is important because of its impact on industrial and human capital development. However, despite huge investments in the sector, there is a wide gap between the power generated and the power distributed, which has impacted the growth of all sectors of the economy. Nigeria has the largest economy in Sub-Saharan Africa, and its slow economic development is largely linked to a poor electric power supply. In addition to poor power generation, several human factors, such as connection inefficiencies, leakages, and other negative activities, affect power distribution. The goal of conducting this research is to investigate key challenges in the sector and identify the best solutions to mitigate them. Several studies have been undertaken in the past to assess various sectors of the Nigerian economy and the impact of consistent power supply. This study explored possible solutions to the identified challenges and assessed the impact of implementing the solar photovoltaic (PV) solution because it was identified as one of the most viable options for solving some of the identified challenges. A desk study approach was adopted, which leveraged data collected and analyzed by various authors. This allowed critical analysis of the authors’ views in different sectors of global economic development, such as academics, international finance organizations, consultants, and key industry professionals, to understand and propose a viable solution. The analysis that was conducted showed that various methods of power generation could complement the major reliance on hydropower generation in Nigeria. However, the major distribution challenge is better solved by systems that can generate and distribute power independently without relying on an ineffective national grid. The solar photovoltaic (PV) system is recommended in this research as a viable option because the average quantity of solar energy received in Nigeria is approximately 120,000 (One Hundred and Twenty Thousand) times the total generating capacity of Nigeria’s Power Holding Company (PHCN). Solar power generation is becoming more affordable in Nigeria and has recorded a 22% annual growth in adoption in the past five years. Findings from research conducted by the Boston Consulting Group (BCG) and All-On Nigeria showed that there is major improvement in key areas such as agriculture, education, and health when independent solar systems are implemented. These areas need to be further explored in future research to determine the gap in specific areas of the economy and the quantity of solar technology that can be implemented to achieve a meaningful impact.