Central Bank of Nigeria
Economic development, Energy resources, Renewable energy, Nigeria
The article identifies the various forms of energy resources available in Nigeria and proposed how best these energy resources could be into efficient use. It observed that Nigeria sis blessed with abundant renewal energy and non-renewable energy resources and appreciated the fact that, while renewables will continue to play a granting role, “they are not expected to overtake fossiI fuels in the near future in meeting both Nigerian and global energy demand. The paper concludes that most of the energy consumed in the country come from oil and gas and viewed this to be a move in the right direction as these non-renewable energy resources are very much available and relatively cheap. This is against the background that hopefully, by the time these non-renewables are attaining exhaustion, technological innovation would have come up with cheaper ways of exploiting the renewables. The article called for vigour in utilising the enormous volume of natural gas currently being flared s this will serve the dual purpose of stomping out gas flaring in the country and providing the country with a cheap energy source. It then called on the Government to invest in gas utilisation projects by embarking on massive laying of national grid. It advocated for oil to be locally consumed only where it is absolutely necessary, while the rest of it be exported to earn the much-needed foreign exchange. It posited that effort should be made not only to improve m the capacity utilisation of the refineries, but also to increase their cumulative installed capacity. The article called functional modalities of private partnership of refineries to be worked out while Government draws up a comprehensive master plan for the development of the petrochemical industry. The article is of the view that the Nigerian coal resources should be left for future consumption. It called for the employment of appropriate non- renewable energy resources in sparsely populated area. Considering that Nigeria is rat the tropics, the abundant solar energy could be used in pondering projects in sparsely populated regions. Government at various levels could use solar energy to ponder social amenities such as water boreholes, schools, Health centres, and streetlights. the abundant wind in the northern part of the country could be used to ponder projects such as irrigation of farmlands. As rivers and streams crisscross the entire country, studies should be carried on I to identify appropriate locations for small hydro plants to serve small communities and projects. Considering that Nigeria is not yet self- sufficient in food production, the use of biomass should be restricted to organic waste. The paper opined that generally, the government should commission a body to identify the appropriate energy resources for a given project/locality in the country. As a lesson from the wasted earnings in the 1970s, the article is of the view that the extra earnings emanating from the high crude oil prices should be wisely invested as this does not last forever. Over-consumption and under-investment experienced during previous oil windfalls should be avoided. The article is optimistic that if these are carried out, the country would accelerate industrialization and economic development thereby improving its score on the Human Development Index. While the article appreciates that none of the forms of energy offer cheap, clean and abundant energy enough to replace the vast amount of conventional fossil fuel consumed daily in the country, it called for integration of renewable energy supplies into Nigerian energy sector as this would help temper the cyclical nature of fossil fuel markets and can give renewables a foothold from which to grow.
CBN Economic and Financial Review
Agboegbulem, N. T. I. (2008). Appropriate mix of energy resources for economic development in Nigeria. CBN Economic and Financial Review, 46(1), 1-31.