By Okafor Joseph Afam
October 11, 2024

Nigerians spend a staggering $10 billion annually on petrol and generator maintenance, according to a new report by Sustainable Energy for All (SEforALL). This exorbitant expenditure highlights the country’s heavy reliance on fossil fuels for energy generation, despite significant environmental and economic challenges.

The report, produced in partnership with the Lagos State Government, emphasizes that the high cost of fuel and generator (genset) maintenance places a heavy burden on households and businesses, stifling economic growth. “Nigerians reportedly spend $10 billion (N7.6 trillion) annually on fuel and maintenance for small petrol genset,” SEforALL said in its latest report titled, “Beyond Gensets: Advancing the Energy Transition in Lagos State.”

The average small business in Nigeria spends between N20,000 to N40,000 per month on fuel alone, making it the largest operational cost for many small and medium enterprises (SMEs), according to the report.

Nigeria, one of Africa’s largest economies, has long grappled with unreliable power supply, forcing citizens and businesses to rely on self-generated electricity. The West African nation faces critical energy challenges, from a lack of access to consistent electricity to the increasing scarcity and price hikes of petrol.

“The cost of electricity from petrol generators is 83% higher than the cost of electricity from the grid,” SEforALL added, stressing the economic strain it creates for businesses and residents alike.

Lagos State, the commercial hub of Nigeria, relies heavily on diesel-powered generators, contributing significantly to environmental degradation. The report reveals that annual carbon emissions from generator usage in Lagos alone reach a staggering 39 million tons of CO2 equivalent (tCO2e). This figure surpasses the emissions of entire countries like Rwanda, Gabon, and Togo.

In the breakdown, Lagos’ residential sector contributes 21 million tonnes of CO2 annually, while the commercial sector accounts for 17.8 million tonnes, with markets emitting an additional 141,125 tonnes.

“Together, these emissions amount to 39 million tonnes of CO2, a staggering figure when compared to emissions from other nations,” SEforALL noted. For context, Togo emits 9.8 million tonnes of CO2 annually, Rwanda 10.6 million tonnes, and Gabon 10.2 million tonnes.

The report estimates that Lagos State alone has a genset capacity of around 19 gigawatts (GW), far exceeding the national grid’s installed capacity of 12.2 GW. This dependence on generators has placed Lagos at the center of Nigeria’s power generation crisis while simultaneously exacerbating the environmental toll.

The root of this issue lies in Nigeria’s unreliable electricity grid. Despite an installed capacity of 13,014.14 megawatts (MW), the national grid frequently operates below optimal levels. Outages and inconsistent power supply have left businesses and residents with little choice but to turn to alternative power sources like generators.

The SEforALL report urges a shift toward cleaner, more sustainable energy solutions for Lagos and Nigeria at large. Air pollution, exacerbated by generator emissions, remains a leading environmental risk factor globally, responsible for millions of deaths each year, according to the World Health Organization (WHO).

Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources, emphasized the importance of Lagos leading the energy transition. “By understanding and working to mitigate the impacts of diesel and petrol generator sets, we are taking decisive steps toward a cleaner, more sustainable energy future for Lagos and Nigeria as a nation,” he stated.

The report underscores the need for urgent action, advocating for the adoption of cleaner energy technologies to reduce the nation’s dependence on petrol and diesel generators. As Lagos aims to transition to sustainable energy, the challenge remains significant but necessary for long-term economic and environmental well-being.