Reimagining Energy Utilization for Industrial Sector in Face of Rising Cost of Alternative Liquid Fuels
Africa’s energy giant
Nigeria is Africa’s energy giant.
- It ranks second to Algeria in natural gas by almost 50 trillion cubic feet of gas deposits.
- Most of Africa’s bitumen and lignite reserves are found in Nigeria.
- In its mix of conventional energy reserves, Nigeria is unmatched by any other country on the African continent.
It is not surprising therefore that energy export is the mainstay of the Nigerian economy.
The Nigerian energy sector
The Nigerian energy sector plays a pivotal role in attempts to achieve sustainable development, balancing economic and social developments with environmental protection.
- Energy is also central to the economy because it is a critical resource for industrial processes and operations.
- From power generation to heat processing, air conditioning and transportation, there is a high requirement for reliable energy options that can efficiently power the industrial sector in West Africa, spurring rapid growth and boosting the economy.
The Nigerian energy sector Challenges
- Sadly, traditional energy sources like diesel are increasingly becoming undependable, with the challenges of storage, pilfering and sudden price changes causing businesses to suffer greatly.
- Only in 2022, diesel prices witnessed an increase of over 100% within the first quarter of the year.
- Recent data shared by the Manufacturers Association of Nigeria stated that before these price changes, energy costs accounted for 40% of operational expenses incurred in running a factory in Nigeria. Now, the increased prices of diesel could put many manufacturers out of business, and those who will remain will no doubt be forced to cut costs dramatically and increase the prices of end products.
The recent energy crisis
The recent energy crisis can be said to be not just an African phenomenon but a global crisis. Wherever you are and whatever you do, you must have certainly felt the sting of it, and there’s no end in sight. West Africa as our case in point is not new to this as hikes in petroleum prices can almost be said to be an annual occurrence especially in Nigeria. But amidst the great challenges, there is also an exciting opportunity emerging in the energy sector, Natural Gas.
The fossil energy source has the potential to completely transform how energy is utilised in Nigeria and the African region as a whole!
- Natural gas is an alternative energy source that is cost-effective, more efficient in power generation than other fossil fuels, and most importantly has a reliable distribution system within the country.
