What is the contribution of Hydropower to the Nigerian economy and how competitive is this renewable energy source?

Mary Oluwagbemisola Kentebe @Mary-Oluwagbemisola-Kentebe

24 September 2023 1 4K Report

Considering the competitiveness of Hydro power in the renewable energy sector in Nigeria

According to statista.com and hydropower.org, hydropower plays a significant role in Nigeria’s energy sector and contributes to the economy in several ways:

Energy Production: As of 2022, hydropower accounted for about 27% of Nigeria’s power production. The total installed capacity is 12,522 MW, of which 2,062 MW is hydropower.

Economic Growth: The government has set hydropower development targets of 12,801 MW for 2030 to support its ambitious economic growth target.

Job Creation: Developing and maintaining hydropower plants create jobs and stimulate economic activity.

Rural Electrification: Hydropower projects help extend electricity to rural and remote areas, improving living standards and promoting economic development.

In terms of competitiveness, hydropower in Nigeria has several advantages:

Abundant Resources: Nigeria has large rivers and natural falls that provide rich hydropower potential.

Untapped Potential: The total exploitable potential of hydropower is estimated at over 14,120 MW, amounting to more than 50,800 GWh of electricity annually. This indicates a significant opportunity for further development.

Government Support: The Nigerian government prioritizes fully harnessing the country’s hydropower potential and promotes private sector participation in its development.

However, despite these advantages, the competitiveness of hydropower in Nigeria is affected by several challenges:

Investment and Management: Nigeria is ranked economically water-scarce due to a lack of investment and management to meet demand.

Infrastructure Development: The development of hydropower infrastructure requires significant capital investment and time.

Environmental Impact: Hydropower projects can have environmental impacts that must be managed carefully to ensure sustainability.

While hydropower significantly contributes to the Nigerian economy and possesses competitive advantages, its full potential is yet to be realized.

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