Opportunities and Challenges of an Integrated Energy Policy for Nigeria - Perspectives from a Competing Energy Product

Abstract

Abstract Until recently, policy and decision makers in Nigeria have neglected the socio-economic and commercial benefits that will accrue from the re- vitalization and re-development of Nigeria’s coal industry. This position is largely due to the lack of a clear energy policy that articulates the role and scope that each of the various energy media should play in our national development and in meeting Nigeria’s long-term goals. Recent technical and economic studies have identified coal energy as a cost effective solution for power generation; it comes at a cost that is about 50% that of fuel oil. Furthermore, with over two billion tons reserves in Nigeria, coal is an abundant domestic resource that can support the mining industry and provide numerous jobs with potentially high multiplier effects on the local economy. Current technologies allows for clean burning of coal, which takes care of its negative environmental impact; indeed over 50% of the US electrical power supply is from coal resources. This paper addresses the need to have an integrated energy policy that will define the role and scope to accommodate the various energy media available in the nation with the aim of promoting a broader development of and utilization of Nigeria’s many natural energy resources. With some emphasis on the place of coal as a viable energy resource, it also provides a clear evidence of the scope to apply knowledge and expertise from hydrocarbon sub-surface systems development, in this emerging industry sector. An outline of the key features of a possible integrated energy policy framework is also presented.