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The country is currently facing an energy crisis characterised by widespread unreliability of power supply. Nigeria has an installed capacity of about 13,000 megawatts (MW), but the actual generation frequently hovers around 4,000 to 5,000 MW for a population of over 200 million people, making it hard for them to study, run a business, or simply live comfortably.
Over100 million Nigerians at present lack reliable access to electricity. Power outages and unreliable supply cost the nation’s economy an estimated $28 billion every year. The sector suffers from a N7 billion cumulative debt trap driven by market shortfalls between approved customer tariffs and the actual cost of generation. Yet, Nigeria reportedly holds 215.19 trillion cubic feet (TCF) of proven natural gas reserves, ranking as the largest in Africa and among the top 10 globally.
The Nigerian National Petroleum Company Limited (NNPCL) estimates that the country has an additional 500 TCF of unproven potential gas reserves that could be unlocked through further exploitation. But a significant portion of the 7.5 billion cubic feet per day (Bcf/d) of gas currently produced are simply flared. Burned off in giant flames that light up the sky and deliver almost no benefit. Through its Gas Master Plan, the country aims to hit 10 Bcf/d by 2027 and 12 Bcf/d by 2030 to fully industrialise the country.
At current production rates, Nigeria has enough proven gas reserves to sustain its output for over 140 to 150 years. Building an LNG (Liquefied Natural Gas) facility would allow the country to store and transport gas, using it to power electricity plants. Yes, Nigeria has a major LNG facility operated by the Nigeria LNG Limited on Bonny Island in Rivers State. It features a six-train liquefaction plant with a nameplate production capacity of 22 million tonnes per annum (MTPA).
But the major problem with the facility is not the liquefaction capacity, but a shortage of natural gas delivered to the plant. It has encountered severe feedstock shortages. That means less gas to the country’s power plants for stable power for our homes, ensuring fewer blackouts, and less pollution. Energy experts believe that Nigeria can combat its electricity crisis by deploying small modular nuclear reactors (SMRs).
Sometimes power could be needed where there are no big transmission networks – in remote villages or new industrial zones. Modular nuclear reactors can be built relatively quickly and can serve as a reliable backbone for entire regions. A country like Russia has extensive experience in developing and deploying such technologies, and its solutions can be adapted to Nigeria’s specific needs.
There is the need to urgently modernise Nigeria’s four oil refineries located in Port Harcourt, Warri, and Kaduna as their infrastructure are aging and frequently break down. They have a combined capacity of 445000 barrels per day (bpd) but contribute close to zero output to domestic supply for long stretches, forcing the country to import fuel and diesel even though it has abundant crude oil.
For decades, billions were spent on Engineering Procurement Construction (EPC) contracts. While contractors were paid and moved on, the long-term management and day-to-day operation of the facilities were severely neglected. For instance in late 2024 the Port Harcourt refinery briefly resumed crude processing but was forced to shut back down due to fresh maintenance complications.
According to NNPCL and labour unions, the plants have historically suffered from low-capacity utilisation while the refined products generated were frequently worth less than the raw crude fed into the system. Upgrading these facilities would boost domestic fuel output, reduce costs, make fuel more affordable, and create new jobs. Petroleum engineering experts suggest that Russia’s engineering expertise in refinery modernisation could play a key role in turning these plants into efficient and reliable assets.
Beyond, Nigeria is shifting aggressively toward decentralized renewable energy to stabilize the country’s delicate national grid. The sun shines over the country almost every day – a free and powerful source of energy. Solar panels can bring electricity even to places without grid connections. But the sun doesn’t shine at night, so energy storage systems (batteries) are essential. They store power during the day and release it in the evening.
These hybrid systems are especially valuable for rural communities, schools, and hospitals, giving them a stable, independent source of light. The nation’s Rural Electrification Agency (REA) has budgeted 170 billion Naira to roll out over 500 distinct electrification projects. This includes the 100 billion National Public Sector Solarization initiative, which is installing hybrid solar mini-grids across federal universities, teaching hospitals, and government ministries.
However, to bring power to every home in Nigeria, it’s best to take a step-by-step approach. Start with quick wins: install solar-plus-storage systems in areas that need them most, and begin upgrading of the nation’s refinery capacity. At the same time, work on larger, long-term projects like the LNG and small nuclear reactors.
This way, Nigeria can see fast improvements while building a solid energy foundation for the future. The truth is that energy isn’t just about lights in a socket. It’s about students studying in the evening, entrepreneurs launching businesses, clinics keeping vaccines cold, and families enjoying a more comfortable life. Nigeria already has the resources, the land, and the people. Now it’s time to turn that potential into real projects – so that light reaches every home.
Sani Tide,
Yola, Adamawa State
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