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The Importance of Energy Efficiency In Nigeria


In 2020, the Nigerian Electricity Regulatory Commission (NERC) introduced a cost-reflective and service-based tariff (SBT) regime to ensure fair electricity pricing. However, mistrust persists among customers who believe they pay too much for energy. To address this issue and mitigate the impact of tariff hikes, embracing energy efficiency is crucial.

Understanding Energy Efficiency:

Energy efficiency, as defined by the Environmental and Energy Study Institute (EESI), involves minimizing energy waste by using less energy to perform tasks efficiently. This concept is critical in optimizing energy utilization and reducing waste across production and consumption.

Why Energy Efficiency Matters in Nigeria:

1. Bridging the Electricity Generation Gap:

Nigeria possesses the capacity to generate over 12,500 MW but often falls short due to various constraints. Energy efficiency can reduce overall electricity demand and optimize existing resources, making power production more effective.

2. Climate Commitments:

Energy efficiency aligns with Nigeria's goal to achieve net-zero emissions by 2060. It reduces greenhouse gas emissions, demonstrating the nation's commitment to global climate change mitigation.

Practical Steps for Energy Efficiency:

- Choose Energy-Efficient Appliances: Seek energy star-rated appliances for reduced energy consumption.
- Switch to LED Lights: Replace incandescent bulbs with longer-lasting and energy-efficient LED lights.
- Schedule Energy Use: Plan energy-intensive tasks to minimize appliance usage.
- Harness Natural Ventilation: Utilize weather patterns and open windows instead of relying on electrical fans or air conditioners.
- Switch Off Appliances: Ensure devices are turned off when not in use.
- Adopt Clean and Renewable Energy: Explore options like solar and wind power.

Benefits of Energy Efficiency:

1. Energy Bill Reduction: Consumers can lower their monthly expenses by reducing energy waste.
2. Investment Optimization: Energy efficiency minimizes demand, optimizing the electricity value chain and rerouting investments towards critical areas.
3. Environmental Impact: Reduced greenhouse gas emissions contribute to energy transition and net-zero emissions targets.

Challenges and Future Prospects:

Challenges include the initial cost of energy-efficient technologies and a lack of awareness among consumers and businesses. However, prospects are promising, with expected government support, policy incentives, and technological advancements, particularly in smart grids.


Energy efficiency is a multifaceted strategy that benefits consumers, stakeholders, and the environment. By embracing energy-efficient practices, Nigeria can enhance the sustainability of its electricity sector and contribute to broader economic and environmental goals.

20 October 2023

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