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Rising energy, transport costs threaten Lagos’ clean energy transition – EnviroNews
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Rising energy and transportation costs are squeezing household incomes across Lagos, making it increasingly difficult for many residents to embrace cleaner and more sustainable energy options.
Interviews with residents, workers and renewable-energy operators show that higher fuel, transportation and electricity-related expenses are forcing households to prioritise basic needs over investments in clean-energy technologies.
For civil servant Mr. Cyprian Udoh, the rising cost of energy is taking a heavy toll on workers’ incomes.
He said escalating household expenses were leaving many workers with little or nothing to save after meeting their daily needs.
For traders, the impact is equally significant. Mrs. Ogonna Igwe said rising transportation costs were eating into business profits and making it increasingly difficult for traders to sustain their operations.
A Lagos Island worker, Mr. Moses Alabi, said high transport fares had forced some workers to relocate closer to their workplaces in an attempt to reduce commuting expenses.
According to him, moving closer to work has become a strategy for preserving income that would otherwise be spent on transportation.
The rising cost of conventional energy is also creating a paradox for households seeking cleaner alternatives.
Mr. Charles Ogidi, a solar-panel installer, said the cost of installing solar systems remained beyond the reach of many residents despite growing interest in alternatives to petrol and diesel generators.
The Chief Executive Officer of Zamar Solutions, Mrs. Joy Ijeneme, said Nigeria’s clean-energy transition must therefore go beyond simply making renewable technologies available.
She stressed the need to build local capacity to install, maintain and repair renewable-energy systems, noting that some imported renewable-energy products lack adequate technical support when they develop faults.
For millions of Lagos households, energy expenditure now competes directly with transportation, cooking, lighting, food and other essential household needs.
Petrol prices at some Lagos filling stations rose to about N1,310 per litre by late August, from around N1,205 per litre, while some outlets sold above N1,400 per litre. Depot prices stood at about N1,200 per litre on August 28.
The increases have further raised the cost of running petrol-powered generators, which many households and businesses continue to rely on to supplement electricity supply.
Even households without generators are affected, as businesses facing higher energy and transportation costs pass some of the additional expenses on to consumers through increased prices of goods and services.
Diesel prices have also remained elevated, adding to operating costs for businesses, while fluctuations in Liquefied Petroleum Gas and kerosene prices continue to influence household decisions over cooking fuels.
Consequently, energy is increasingly becoming a competition among household necessities rather than simply a choice between different fuel sources.
Clean Energy Ambitions Face Affordability Challenge
Nigeria’s Energy Transition Plan provides the national framework for achieving net-zero emissions by 2060. It projects renewable energy to account for 82 per cent of installed electricity generation capacity by 2050, with solar photovoltaic capacity expected to reach 209 gigawatts.
The plan identifies the transport and power sectors as major sources of energy-related emissions and targets significant reductions through the adoption of cleaner technologies.
However, Nigeria is starting the transition from a relatively low renewable-energy base.
The International Renewable Energy Agency puts the country’s installed solar photovoltaic capacity at 197 megawatts, including 124 megawatts of off-grid capacity. Meanwhile, solar-panel imports reached 1.33 gigawatts in 2024.
The figures point to a significant gap between renewable-energy equipment entering the country and capacity captured in official installed-capacity statistics.
A 2024 Sustainable Energy for All study supported by the Lagos State Government examined fossil-fuel generator use across the state’s 20 Local Government Areas and identified distributed solar photovoltaic systems, particularly rooftop solar combined with battery storage, as a potential solution for reducing generator dependence.
But the upfront cost remains a major obstacle, particularly for low-income households already struggling with higher living expenses.
Experts say affordable financing, consumer protection and dependable after-sales services will be essential if renewable energy is to move beyond wealthier households and become accessible to a broader section of Lagos’ population.
Lagos Strengthens Renewable Energy Framework
Lagos has taken steps to create a more supportive regulatory environment through the Lagos State Electricity Law 2024.
The legislation provides for renewable energy, energy efficiency and demand-side management, while also establishing provisions for renewable-energy purchase obligations.
It provides for the certification of renewable-energy installers and incentives for rooftop solar, including possible net-metering arrangements.
The state is also seeing the development of decentralised renewable-energy projects.
In June, the Rural Electrification Agency commissioned a 505-kilowatt-peak interconnected solar mini-grid serving five communities in Epe – Odogbawojo, Odoshiwola, Odoayan, Ora and Ibowon.
The project is designed to supply electricity to households, businesses, public institutions and productive users.
Reliable electricity from such local systems could help reduce dependence on individual petrol generators and the recurring cost of purchasing fuel.
Transport Also Critical to Energy Transition
The clean-energy transition extends beyond household electricity to transportation, where petrol prices have a direct impact on mobility and household incomes.
The Lagos Metropolitan Area Transport Authority, working with relevant partners, has participated in developing plans for cleaner-energy buses, including Compressed Natural Gas and electric buses, alongside the national policy push for soot-free buses.
Industry stakeholders are also seeking to accelerate investment in Nigeria’s emerging clean-energy economy.
At its fifth International Investment and Partnership Conference in Lagos in August, the Renewable Energy and Energy Efficiency Associations Alliance adopted a 12-point action plan focusing on investment, project execution, energy access and industrial participation.
“Energy is too large for any single institution, sector or stakeholder to solve alone. It demands concerted action,” said Prof. Abubakar Sambo, Chairman, Board of Trustees, Renewable Energy and Energy Efficiency Associations-Alliance.
Sambo called for greater coordination among stakeholders to accelerate Nigeria’s energy transition.
From Importing Technology to Building Capacity
Stakeholders say Nigeria’s energy transition must ultimately go beyond importing solar panels, batteries, electric buses and other clean technologies.
The country needs to develop the technical skills and industrial capacity required to install, maintain and eventually manufacture renewable-energy equipment locally.
The Renewable Energy and Energy Efficiency Associations Alliance has introduced programmes covering technical assistance, workforce development, energy efficiency, financing and clean-energy technologies.
Nigeria’s Energy Transition Plan estimates that the net-zero pathway could generate up to 340,000 jobs by 2030 and 840,000 by 2060.
For Lagos, stakeholders say the figures represent an opportunity to turn the energy challenge into an industrial, employment and economic-development strategy.
Solar systems can provide electricity for homes and businesses, battery storage can offer backup power, while mini-grids can serve communities that remain poorly served by the conventional electricity system.
Electric vehicles could reduce dependence on petrol, while energy-efficiency measures could help households and businesses reduce consumption and costs.
Affordability Will Determine Success
Despite the growing number of initiatives, stakeholders say the transition will only succeed if cleaner energy becomes affordable and accessible beyond high-income households and large businesses.
For the average Lagos household, the ultimate test will not simply be the number of solar installations or electric buses deployed, but whether the transition delivers lower energy costs, more reliable electricity, affordable transportation and cleaner air.
Lagos has begun assembling many of the necessary components through renewable-energy projects, mini-grids, clean-energy transport initiatives and electricity-market reforms.
The challenge now is to integrate these initiatives into an affordable and reliable energy system capable of protecting household incomes while meeting the needs of the state’s rapidly growing population and development ambitions.
By Fabian Ekeruche
