Urban poverty, renewable energy and Nigerian business climate

Abstract

In the phenomenal urban growth of cities Nigeria has experienced poor and haphazard urban planning. The cities are generally characterized by poor and inadequate and inefficient urban services and infrastructure. Energy use is closely related to the level of productivity in business and other activities. A primary challenge to the business environment in Nigeria is the deficit in infrastructure. The estimated energy need for Nigeria is 98,000MW per day. The country however generates an average of 3,500MW daily only. The result is an alarming shortage of 94,500MW daily. The low power supply makes electricity costly. Consequently the operating costs for businesses are usually high as electricity is indispensable in the running of businesses. The objective of this paper is the examination of the use of renewable energy in Nigeria particularly with regard to building an enabling business environment in Nigeria. This is in view of the incidence of urban poverty experienced in the country and its impact on the Nigerian business climate. The paper examines the urbanisation process in Nigeria and the resultant socio-economic downturn emanating from it. It asserts that phenomenal urban poverty, particularly infrastructural decay such as electricity supply has been experienced in the country which has been a handicap to the growth of the business environment in the country. The paper examines the energy situation in the country, and electricity generation and distribution. It critically examines an alternative direction of energy production and transmission in Nigeria, which is the resort to resources of renewable energy. Nigeria has an abundance of the resources such as solar, wind, hydroelectricity, and biomass. Policies, programmes, and strategies of renewable energy are examined in the paper. The paper concludes that the development would be an important key to building an enabling business environment in Nigeria.