BUSINESS DAY
Nigerians spend a staggering $10 billion annually on petrol and generator maintenance, according to a new report by Sustainable Energy for All (SEforALL).
This exorbitant expenditure underscores the country’s heavy reliance on fossil fuels for energy generation, despite significant challenges and environmental concerns.
According to the report in partnership with the Lagos State Government, the high cost of fuel and generator (genset) maintenance places a heavy burden on households and businesses, hindering economic growth and development.
“Nigerians reportedly spend $10 billion (N7.6 trillion) annually on fuel and maintenance for small petrol genset,” SEforALL said in its latest report entitled, “Beyond Gensets: Advancing the Energy Transition in Lagos State.”
The report explained that the average small business in Africa’s biggest economy spends N20,000 to 40,000 per month just on fuel.
“This is the largest cost to many small and medium enterprises (SMEs) in their operations,” SEforALL said.
Nigeria, one of Africa’s largest economies, has long struggled with an unreliable power supply, forcing its citizens and businesses to resort to self-generated electricity.
The West African country faces critical energy challenges from the lack of access to electricity and clean cooking to the scarcity and price hike of petrol.
“The cost of electricity for petrol generators is 83 percent higher than the cost of electricity from the grid,” SEforALL said.
The report noted that Lagos State’s heavy reliance on diesel-powered generators has resulted in an alarming environmental toll, with estimated annual carbon emissions reaching 39 million tons of CO2 equivalent (tCO2e), higher than three other African countries such as Rwanda, Gabon, and Togo.
The study revealed that emissions from Lagos’ residential, commercial, and market sectors are overwhelming.
READ THE FULL STORY IN BUSINESS DAY
