Simon Olanipekun

The use of solar energy to power businesses has been found to significantly improve the socioeconomic status of Nigerians. This is according to findings of a study conducted by Boston Consulting Group (BCG) and All-On- a Shell-funded impact investment company.

The study, which was conducted to analyze the impact of solar energy implementations on health, education and food security outcomes as well as its effect on the environment and commercial activity in the country, assessed the developmental benefits to be realized by Nigeria from its limited solar installations and what impact could be achieved from scaled deployment by engaging six different user groups across five socioeconomic dimensions.

According to the study, the Nigerian solar off-grid market is among the fastest-growing in Africa, increasing at a 22 percent average annual rate during the past five years, but has underperformed its peers in Africa in penetration of off-grid solar and has a long way to go before its solar market could be considered robust.

“Nigeria’s installed photovoltaic (PV) panel per capita amounts to only about 1 watt compared to an average of 8 watts in similar emerging markets, indicating a big opportunity for further growth in the country. Given the dynamics favouring solar deployment in the country, Nigeria’s PV per capita could reach 5 -8 GW by 2030,” the study stated.

A survey of the Nigerian Primary Health Centres (PHCs) with solar electricity showed that they witnessed a 60 to 70 per cent improvement in antenatal care coverage and a 40 to 60 per cent reduction in vaccine waste.

In addition, the report discovered that at Nigerian public boarding secondary schools that installed solar equipment, students’ study hours increased by over 200 percent and the number of Information and Communications Technology (ICT) teaching hours rose by 30 per cent.

Also, the study showed that farmers that adopted solar-powered cold storage reduced postharvest loss (PHL) for perishable goods by up to 30 per cent.

Furthermore, the study revealed that around 500,000 Nigerian households (1.25% of total households) use solar energy, which resulted in upwards of 160,000 tonnes of CO2 emissions being avoided.

“In markets that have been powered by solar panels in Nigeria, the study found that there is a 20 to 40 percent increase in operating hours of micro, small and medium scale enterprises (MSMEs) and that they avoided the substantial inventory and sales losses resulting from fires caused by generators,” the company stated.

Commenting on the findings, the Managing Director and Partner, BCG (West Africa), and Head of BCG Nigeria, Tolu Oyekan, said, “Based on current solar-powered cold storage adoption data, by electrifying 600,000 Nigerian farmers who currently don’t have cold storage facilities PHL could be slashed by as much as 60 percent, producing enough additional food to feed 6.5 million people annually.

“Assuming solar penetration among households in Nigeria reaches peer nation average of about 30 percent by 2030, an additional 5 million tonnes of CO2 can be avoided as emissions from households would be reduced by nearly 30 percent.

“Deploying solar to around 15 to 20 million MSMEs in markets without reliable grid electricity could increase income at these companies by $7 billion to $10 billion, some 40 percent of annual MSME earnings.”

BCG and All-On discovered that improvement in access to capital for consumer solar purchases, simplified import policies and skills development are required for Nigeria to fully experience the socioeconomic benefits of solar energy.

Ultimately, the benefits Nigeria stands to derive from the transition to renewable energy, especially the adoption of  solar energy, cannot be understated. Not only would it improve the healthcare and educational sector thereby translating to a better skilled and healthy population of human capital, it also possesses the potential of improving the industrial sector, creating jobs, boosting per capita income , improving the international trade balance and income and boosting the Gross Domestic Production of the Nation.