Financing Renewable Energy for Sustainable Development in Nigeria

The availability of power is essential for the development of any economy. The journey toward a reliable and sustainable power supply in Nigeria has been a challenging one. Various strategic plans to ensure adequate power over the years have not been successful. Nigeria's power-generating capacity has remained consistently unreliable despite the rising demand from households, industries, and commercial establishments. Power generation in Nigeria mainly relies on hydro, thermal, solar, and biomass sources. The country’s total energy production is currently 5313 MW, which is insufficient to drive sustainable economic development. Dependence on non-renewable energy sources hampers industrial growth and prevents the benefits of renewable energy from being realized. The current energy mix shows that renewable energy's contribution is insignificant and far from its full potential, especially when considering its environmental benefits. Nigeria has substantial renewable energy resources that can support economic growth, social progress, and environmental quality; however, this effort is constantly challenged by limited infrastructure, access to adequate financing, policy and regulatory hurdles, and technology and technical expertise. This study, therefore, focuses on the need to provide adequate financing through innovative financing packages to support the expansion of renewable energy and enhance sustainable development in the country.