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Law, Policy, and the Development of Renewable Energy for Electricity: A Case for a Renewable Energy Law in Nigeria

Published online by Cambridge University Press:  22 July 2021

Abstract

Nigeria faces a perennial problem of inadequate electricity generation and supply. Electricity generation from fossil fuel sources has not succeeded in meeting the electricity needs of the country. And attempts to diversify electricity generation sources to include renewable energy sources have not been successful. Although there is a policy direction supporting the inclusion of renewable energy sources for electricity generation, the Electric Power Sector Reform Act 2005 (ESPR) has not succeeded in achieving the country's sustainable electricity drive. Nigeria needs to vigorously pursue its renewable electricity objectives through a law dedicated to encouraging uptake of renewable energy. This article examines the law and the policies underpinning Nigeria's sustainable electricity drive through a critique of the EPSR Act and the energy policy in light of Nigeria's renewable electricity objectives.

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Copyright © The Author(s), 2021. Published by International Association of Law Libraries

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Footnotes

© Kamoru Taiwo Lawal 2021. The author is a research student at the Adelaide Law School, University of Adelaide, and also a Legal Practitioner & Consultant.

References

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12 Zubairu G. Usman, Serkan Abbasoglu, Neyre T. Ersoy and Murat Fahrioglu, ‘Transforming the Nigeria Power Sector for Sustainable Development’ (2015) 87 Energy Policy 429, 429; Sunday E. Simon, Electricity: Nigeria loses 4,379MW to distribution, gas constraints, Daily Trust 7 August 2018 <https://www.dailytrust.com.ng/electricity-nigeria-loses-4-379mw-to-distribution-gas-constraints-264541.html>; Nigerian Bulk Electricity Trading Plc, ‘Utility Scale Solar Development in Nigeria in Comparison to Other African Countries’ NBET Discussion Paper Series (November 2016) 5.

13 Olutola B. Fakehinde, Ojo S. Fayomi, Uyi K. Efemwenkieki, Kunle O. Babaremu, David O. Kolawole and Sunday Oyedepo, “Viability of Hydroelectricity in Nigeria and the Future Prospect,” Energy Procedia vol. 157 (2019), p. 871 at 876; R. C. Ijeoma and I. Briggs, “Hydro Power Generation in Nigeria, Environmental Ramification,” IOSR Journal of Electrical and Electronics Engineering vol. 13 no. 5 (2018), p. 1.

14 Sam Amadi, “Improving Electricity Access through Policy Reform: A Theoretical Statement on Legal Reform in Nigeria's Power Sector” in Yinka Omorogbe and Ordor A. Okoye (eds), Ending Africa's Energy Deficit and the Law: Achieving Sustainable Energy for All in Africa (Oxford University Press, 2018), pp. 346–347.

15 Ibid. 11.

16 Oyedepo Sunday, “Energy and sustainable development in Nigeria: the way forward,” Sustainability and Society vol. 2 (2012), p. 11.

17 Brian Pinto, “Nigeria During and After the Oil Boom: A Policy Comparison with Indonesia,” World Bank Economic Review vol. 1 no. 2 1987), p. 419.

18 United Nations, “Report of the United Nations Conference on New and Renewable Sources of Energy” (United Nations 10 August–21 August 1981), p. 113 <https://digitallibrary.un.org/record/25034/files/A_CONF-100_11-EN.pdf>.

19 Ibid.

20 Energy Commission of Nigeria (ECN), National Energy Policy (Presidency, April 2003), p. 4.

21 There was an attempt in 1984 to produce a Draft Energy Policy Guideline by the then Federal Ministry of Science and Technology. Similar attempt by the Energy Commission of Nigeria to develop the Draft Energy Policy in 1993 did not see the light of the day. See, ECN, National Energy Policy (n 19), 2.

23 Subhes C. Bhattacharyya, ‘Renewable Energies and the Poor: Niche or Nexus?,” Energy Policy vol. 34 (2006), p. 659.

24 ECN, National Energy Policy (n 19) 36.

25 Ibid.

26 Olufolahan Osunmuyiwa and Agni Kalfagianni, “Transitions in Unlikely Places: Exploring the Conditions for Renewable Energy Adoption in Nigeria,” Environmental Innovation and Society Transition vol. 22 (2017), p. 26; Nnaemeka Emodi and Kyung-Jin Boo, “Sustainable Energy Development in Nigeria: Overcoming Energy Poverty,” International Journal of Energy Economics and Policy vol. 5, no. 2 (2015), p. 585.

27 National Planning Commission, “Report of the Vision 2020 National Technical Working Group on Energy Sector” (Presidency, 2009), p. 144.

28 Chibueze Ebii, “Can Nigeria Meet its Electricity Goals by 2030? We found out” (Heinrich Boll Stiftung, 2019) <https://ng.boell.org/en/2019/10/11/can-nigeria-meet-its-electricity-goals-2030-we-found-out>.

29 Mark Lambrides, John A. Armstrong and Jan Hamrin, “The Renewable Energy Policy Manual” (United States Export Council for Renewable Energy, 2000) <http://www.oas.org/usde/publications/Unit/oea79e/oea79e.pdf>.

30 See, International Renewable Energy Agency, “Off-grid renewable energy solutions to expand electricity access: An opportunity not to be missed” (Abu Dhabi 2019) 5 <https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_Off-grid_RE_Access_2019.pdf>.

31 United Nations Department of Economic and Social Affairs, “Improving sustainable energy access for rural areas,” (New York, January 2014) <http://www.un.org/en/development/desa/news/sustainable/rural-energy-access.html>.

32 International Renewable Energy Agency, “Policies and Regulations for Renewable Energy Mini-Grids” (2018), p. 6.

33 Eric Martinot et al., “Renewable Energy Markets in Developing Countries,” Annual Review of Energy and the Environment vol. 27 (2002), p. 310.

34 Federal Ministry of Power, “National Renewable Energy and Energy Efficiency Policy” (Federal Republic of Nigeria, 2015), pp. 1–2.

35 NPC, Report of the Vision 2020 National Technical Working Group on Energy Sector (n 26) 15; Mohammed Shaaban and J. O. Petinrin, “Renewable Energy Potentials in Nigeria: Meeting Rural Energy Needs,” Renewable and Sustainable Energy Reviews vol. 29 (2014), p. 76.

36 Sunday O. Oyedepo, Olufemi P. Babalola, Stephen C. Nwanya, Oluwaseun Kilanko, Richard O. Leramo, Abraham K. Aworinde, Tunde Adekeye, Joseph A Oyebanji, Abiodun O. Abidakun and Orobome L. Agberegha, “Towards a Sustainable Electricity Supply in Nigeria: The Role of Decentralized Renewable Energy System,” European Journal of Sustainable Development Research vol. 2, no. 4 (2018), p. 14; Hna Blakk and Michael Thomas, “The Nigerian Power Sector Reforms: Overcoming Post-Privatization,” (Banwo & Ighodalo), p. 5 <https://www.academia.edu/28025509/THE_NIGERIAN_POWER_SECTOR_REFORMS_OVERCOMING_POST-PRIVATIZATION>.

37 Agbetuyi et al, ‘Wind Energy Potential in Nigeria’ (2012) 3(1) International Electrical Engineering Journal vol. 3 no. 1 (2012), p. 601; FMP, National Renewable Energy and Energy Efficiency Policy (n 33) 15.

38 N. A. Udo, A. Oluleye and K. A. Ishola, “Investigation of Wind Power Potential over Some Selected Coastal Cities in Nigeria,” Innovative Energy Research vol. 6 (2017), p. 2.

39 NPC, Report of the Vision 2020 National Technical Working Group on Energy Sector (n 26) 60; Oyedepo et al, ‘Towards a Sustainable Electricity Supply in Nigeria’ (n 35) 11.

40 Energy Commission of Nigeria (ECN), “Energy Implications of Vision 20: 2020 and Beyond” (Energy Commission of Nigeria, Abuja, 2014) pp. 7 & 17; NACOP, Sustainable Energy for All Action Agenda (n 13) 12, 21; Environmental and Energy Study Institute, “Bioenergy” (Biofuels and Biomass) <http://www.eesi.org/topics/bioenergy-biofuels-biomass/description>.

41 Kayode Olaniyan, Benjamin C. McLellan, Seiichi Ogata and Tetsuo Tezuka, “Estimating Residential Electricity Consumption in Nigeria to Support Energy Transitions,” Sustainability vol. 10 (2018), pp. 3 & 7.

42 Ayodele Oni, “The Nigerian constitution, states and electricity regulation” (BusinessDay 10 April 2014).

43 FMPS, Renewable Electricity Policy Guidelines (n 19) 9; Yemi Oke, “Conflicting laws keep Nigeria's electricity supply unreliable” 23 August, 2017 <https://theconversation.com/conflicting-laws-keep-nigerias-electricity-supply-unreliable-81393>.

44 Concurrent Legislative Lists, Second Schedule to the 1999 Constitution, paras 13, 14; Worika, Ibibia L, ‘Rural Applications’ in Richard Ottinger et al. (eds), UNEP Handbook for Drafting Laws on Energy Efficiency and Renewable Energy (United Nations Environmental Programme, 2016), p. 279. Although Item 13 does not contain the phrase “national grid”, it can be inferred from the provisions of Item 14 that the electricity generation and transmission referred to in Item 13 relates to the national grid.

45 Yola Electricity Distribution Company, “About Us,” <yedc.com.ng>.

46 Ismaila H. Zarma, Hydro Power Resources in Nigeria, Energy Commission of Nigeria (Country position paper presented at 2nd Hydro Power for Today Conference, International Centre on Small Hydro Power, Hangzhou, China 2006).

47 Electricity Act 1990; National Electric Power Authority Act 1990.

48 Energy Commission Act 2004 preamble and ss 1(1) and 5(d)&(e); Federal Ministry of Power and Steel, “Renewable Energy Policy Guidelines,” (Federal Republic of Nigeria, 2006), p. 22.

49 Ifeyinwa Ufondu, Ike C. Ibeku and Felix Obetta, “Renewable Energy in Nigeria,” (Bechmac and Ince) <https://www.lexology.com/library/detail.aspx?g=e3a5d485-f596-4f59-b9bd-ba5dd5ae31f5>.

50 Energy Commission of Nigeria Act s 5(d)(i).

51 Energy Commission of Nigeria (ECN), Renewable Energy Master Plan (Energy Commission of Nigeria, Abuja, 2012).

52 Electric Power Sector Reform Act 2005 s 99.

53 Dimitri Papaefstratiou, “The Nigerian power market experiment: a critical appraisal of the PHCN privatisation,” DLA Piper, Insights (15 March 2019) <https://www.dlapiper.com/en/uk/insights/publications/2019/03/the-nigerian-electricity-market-experiment/>.

54 Electric Power Sector Reform Act 2005 s 76.

55 Vincent Emodi, “Energy Policies for Sustainable Development Strategies: The Case of Nigeria” (Springer, 2016), p. 52.

56 Federal Environmental Protection Agency, “Draft Revised National Policy on the Environment” (Presidency, 1998).

57 ECN, National Energy Policy (n 19) 2; Ibibia L Worika, ‘Rural Applications’ in Richard Ottinger et al., UNEP Handbook for Drafting Laws on Energy Efficiency and Renewable Energy (United Nations Environmental Programme (UN Environment), 2016), p. 269.

58 ECN, National Energy Policy (n 19) 1.

59 Ibid. 1, 8.

60 ECN, Energy Implications of Vision 20: 2020 and Beyond (n 39) 19.

61 Ibid. 61.

62 ECN, National Energy Policy (n 19) 36, 45, 64.

63 Energy Commission of Nigeria (ECN), Renewable Energy Master Plan 2005.

64 Ibid. 26–32.

65 Ibid. 5–6, 23–4.

66 International Renewable Energy Agency, “Policies and Regulations for Renewable Energy Mini-Grids,” (November 2018), p. 24.

67 FMPS, Renewable Electricity Policy Guidelines (n 43).

68 Ibid. 3.

69 Ibid. 4.

70 Ibid. 3, 13 and 16; Worika, Rural Applications (n 49) 269.

71 Worika, (n 49) 269; Yemi Oke, “Beyond Power Sector Reforms: The Need for Decentralised Energy Options (DEOP's) for Electricity Governance in Nigeria” (2015).

72 FMP, National Renewable Energy and Energy Efficiency Policy (n 33) viii; Dalberg Global Development Advisors, “Improving Access to Electricity Through Decentralised Renewable Energy, Policy Analysis from India, Nigeria, Senegal and Uganda” (2017), p. 47.

73 FMP, National Renewable Energy and Energy Efficiency Policy (n 33) 67.

74 Ibid. iv, 7, 10.

75 Ibid. viii.

76 Ibid. 4.

77 Ibid. 21; Dalberg Global Development Advisors (n 66) 56.

78 Dalberg Global Development Advisors (n 66) 56.

79 NERC, Regulation on Feed in Tariff s 4(i)(a).

80 Nigerian Electricity Regulatory Commission (NERC), Regulation on Feed-in Tariff for Renewable Energy Sourced Electricity in Nigeria (2015) ss 3, 8(f); Nigerian Electricity Regulatory Commission, ‘Renewable Energy Sourced Electricity’ <http://www.nercng.org/index.php/home/operators/renewable-energy>.

81 Energy Commission of Nigeria, “Nigerian Sustainable Energy for All (SE4ALL) Action Agenda: Electricity Vision 30:30:30,” (Energy Commission of Nigeria) <http://www.se4all.ecreee.org/sites/default/files/nigeria_se4all_action_agenda-energy_mix_chart.pdf>.

82 NACOP, Sustainable Energy for All Action Agenda (n 13) 11–2.

83 Ibid. 31, 37, 40.

84 Ibid. 29.

85 ECN, National Energy Policy (above n 8) 36.

86 Adrian J. Bradbrook, “Energy Law as an Academic Discipline” (1996) 14(2) Journal of Energy and Natural Resources Law vol. 14 no. 2 (1996), p. 193; Raphael J. Heffron and Kim Talus, “The development of energy law in the 21st century: a paradigm shift?,” Journal of World Energy Law and Business (2016), p. 3.

87 Omorogbe, ‘Promoting Sustainable Development through the Use of Renewable Energy’ (n 26); Heffron and Talus, ‘The Evolution of Energy Law and Energy Jurisprudence’ (n 149) 1–2; Raphael J. Heffron, Anita Rønne, Joseph P. Tomain, Adrian Bradbrook and Kim Talus, ‘A Treatise for Energy Law’ (2018) 11 Journal of World Energy Law and Business 34, 35.

88 Omorogbe, The Role of Law in Promoting Renewable Energies in Africa (n 3) 219.

89 Ibid. 215.

90 Ibid. 215, 219.

91 Yinka Omorogbe, ‘Promoting Sustainable Development through the Use of Renewable Energy: The Role of the Law’ in Donald N. Zillman (eds), Beyond Carbon Economy: Energy Law in Transition (Oxford, Oxford University Press, 2008), p. 45.

92 Yinka Omorogbe, The Role of Law in Promoting Renewable Energies in Africa (n 3) 215, 219.

93 H. Wiseman, L. Grisamer, and E. N. Saunders, “Formulating a Law of Sustainable Energy: The Renewables Component,” Pace Environmental Law Review vol. 28 (2011), p. 829.

94 Thomas von Danwitz, “Regulation and Liberalization of the European Electricity Market – A German View,” Energy Law Journal vol. 27 (2006), p. 432.

95 Allan E. Bollard and Michael Pickford, “New Zealand's ‘Light-Headed’ Approach to Utility Regulation,” AGENDA vol. 2 (1995), p. 411.

96 Adrian J. Bradbrook, “Sustainable Energy Law: The Past and the Future,” Journal of Energy and Natural Resources Law vol. 30 (2012), p. 515.

97 Adrian J. Bradbrook, “Energy and Sustainable Development,” Asia Pacific Journal of Environmental Law vol. 4 (1999), p. 311.

98 Adrian J. Bradbrook, “The Development of Renewable Energy Technologies and Energy Efficiency Measures through Public International Law,” in D. N. Zillman (eds), Beyond the Carbon Economy: Energy Law in Transition (Oxford University Press, 2008), p. 109.

99 Carlos Pestana Barros, Ade Ibiowie, and Shunsuke Managi, “Nigeria's Power Sector: Analysis of Productivity,” Economic Analysis and Policy vol. 44 (2014), p. 65.

100 Chukwuka G. Monyei, Aderemi O. Adewumi, Michael O. Obolo, and Barka Sajou, “Nigeria's Energy Poverty: Insights and Implications for Smart Policies and Framework Towards a Smart Nigeria Electricity Network,” Renewable and Sustainable Energy Review vol. 81 (218), p. 1586.

101 Electric Power Sector Reform Act 2005 s 32(a).

102 Osaretin Aigbovo and Ebiton Ogboka, “Electric Power Sector Reform Act 2005 and the Development of Renewable Energy in Nigeria,” Renewable Energy Law and Policy Review vol. 7 (2016), pp. 20–21.

103 The Electric Power Sector Reform Act gives the Ministry certain oversight powers over the electricity industry. See Electric Power Sector Reform Act 2005 ss 24, 27, 28.

104 Energy Commission of Nigeria Act ss 4(a)(d)(e)&(h) and 33; Energy Commission of Nigeria, “Energy Commission of Nigeria's Mission Statement” <http://www.energy.gov.ng/index.php?option=com_content&view=article&id=78&Itemid=89>; Peter K. Oniemola, “Powering Nigeria through Renewable Electricity Investment: Legal Framework for Progressive Realization,” Afe Babalola University Journal of Sustainable Development, Law and Policy vol. 2 no. 1 (2015), p. 89.

105 Chris Ochayi, “NERC, NBET disagree over renewable energy policy,” (Vanguard, 18 August 2015) <https://www.vanguardngr.com/2015/08/nerc-nbet-disagree-over-renewable-energy-policy/>.

106 Kenneth E. Okedu, Roland Uhunmwangho and Promise Wopara, “Renewable Energy in Nigeria: The Challenges and Opportunities in Mountainous and Riverine Regions” International Journal of Renewable Energy Research vol. 5 no. 1 (2015), p. 224.

107 E. L. Efurumibe, “Barriers to the development of renewable energy in Nigeria,” Journals of Biotechnology vol. 2 no. 1 (2013), pp. 11–12.

108 Electric Power Sector Reform Act 2005 s 82(4)&(5).

109 Maria Vagliasind, “Implementing Energy Subsidy Reforms: Evidence from Developing Countries” (World Bank, Washington, DC 2013), p. 248.

110 The rationale behind the non-discrimination provisions is to make the electricity sub-sector more competitive.

111 Kaisan Muhammad Usman, Aminu Haruna Isa and Johnson Oluyemi Ojosu, ‘Renewable Energy Financing: Towards a Financing Mechanism for Overcoming Pre-Commercialization Barriers of Renewable Energy Financing System in Nigeria’ International Journal of Scientific & Engineering Research vol. 3 no. 4 (2012), p. 3.

112 Yemi Oke, ‘Conflicting Laws Keep Nigeria's Electricity Supply Unreliable’ (The Conversation, 24 August 2017) <https://theconversation.com/conflicting-laws-keep-nigerias-electricity-supply-unreliable-81393>.

113 Electric Power Sector Reform Act 2005 ss 31, 32; Yemi Oke, Conflicting Laws Keep Nigeria's Electricity Supply Unreliable (n 104).

114 Yemi Oke, Conflicting Laws Keep Nigeria's Electricity Supply Unreliable (n 104).

115 Yemi Oke, “Challenges and Developments in the Nigerian Power Industry” (2014) ALP Business Review-Energy (2014), p. 22.

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119 Yinka Omorogbe, Promoting Sustainable Development through the Use of Renewable Energy: The Role of the Law (n 89) 45.

120 Yinka Omorogbe, The Role of Law in Promoting Renewable Energies in Africa (n 3) 219.

121 Bradbrook, Sustainable Energy Law: the Past and the Future (n 96) 511–12 & 514.

122 United Nations Department of Economic and Social Affairs, “Improving sustainable energy access for rural areas,” (8 January 2014) <http://www.un.org/en/development/desa/news/sustainable/rural-energy-access.html>.

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