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Japan Raises Alarm As Nigerian Industries Bleed Trillions Of Naira On Costly Power
Japan Raises Alarm As Nigerian Industries Bleed Trillions Of Naira On Costly Power
The Japan International Cooperation Agency says Nigeria must urgently embrace energy-efficiency technologies as businesses and industries continue to bear huge energy costs that undermine productivity, competitiveness and economic growth.
The Energy Commission of Nigeria says industrial energy expenditure runs into trillions of naira annually, with a significant portion spent on diesel-powered self-generation, described as one of the most expensive and least efficient sources of energy available to businesses.
Prof. Abubakar Sambo warns that energy-inefficient appliances continue to enter Nigeria through its porous borders, calling for mandatory compliance and stronger collaboration between the Standards Organisation of Nigeria and Nigeria Customs Service at the nation’s ports.
Channel
The Federal Government says artificial intelligence, smart energy systems and digital monitoring can help transform energy management, but insists that research and policies must move beyond government documents and laboratories to produce measurable improvements in homes, schools, industries and communities.
October 6, () – The Japan International Cooperation Agency (JICA) has raised the alarm over the huge financial burden imposed by Nigeria’s energy inefficiency, warning that the country must urgently embrace energy-saving technologies to cut costs, boost productivity and strengthen energy security.
JICA said Nigerian industries were losing substantial resources to inefficient energy use, while businesses continue to rely heavily on expensive self-generated electricity to sustain operations.
The Chief Representative of JICA in Nigeria, Mr Ishigame Keiji, made the remarks in Abuja at a two-day national workshop on energy efficiency and conservation organised by JICA in collaboration with the Energy Commission of Nigeria (ECN).
The workshop was themed, “Accelerating Energy Efficiency and Conservation in Nigeria: From Policy to Implementation, Regulation and Measurable Impact”.
Keiji described energy efficiency as the “first fuel”, stressing that the cheapest unit of energy was the one that did not need to be produced.
He said Nigeria could substantially reduce energy costs and improve economic productivity by adopting energy-efficient technologies in buildings, industries, transportation and household appliances.
“By adopting energy efficiency technologies in buildings, industries, transportation and appliances, Nigeria can reduce energy costs, improve productivity and enhance energy security”, he stated.
According to him, Japan’s development experience had demonstrated that energy efficiency could serve as a powerful driver of economic growth and industrial competitiveness.
“Japan’s own development journey has shown that energy efficiency is a powerful driver of economic growth and industrial competitiveness.”
Keiji reaffirmed JICA’s commitment to supporting Nigeria’s efforts towards sustainable and inclusive energy development.
He expressed optimism that the workshop would produce a practical roadmap capable of guiding future investments, strengthening institutions and improving collaboration among stakeholders in the energy sector.
Industries Bleed Trillions On Energy
The Director-General and Chief Executive Officer of the Energy Commission of Nigeria, Mustapha Abdullahi, disclosed that industrial energy expenditure in Nigeria runs into trillions of naira annually, with a significant portion of the money going into self-generated diesel power.
Abdullahi described diesel-generated electricity as the most expensive and least efficient energy source available to Nigerian industries, warning that the enormous cost was undermining productive activities across the economy.
He said the huge amount spent on energy could otherwise be deployed to expand businesses, create jobs, improve production capacity and strengthen Nigeria’s industrial base.
“Inefficiency in the energy chain is money leaving the productive economy for no productive return”, Abdullahi said.
He explained that the workshop was designed to bring policymakers, regulators and implementers together to agree on specific actions and timelines for improving energy efficiency.
According to him, Nigeria could not achieve meaningful results if its energy-efficiency policies were not backed by enforceable standards and institutions with the capacity to ensure compliance.
“Energy efficiency policy that is not backed by clear standards, and standards not backed by institutions able to enforce them, do not change outcomes on the ground”, he added.
FG Pushes Technology-Driven Energy Efficiency
The Minister of Innovation, Science and Technology, represented at the workshop by the Director, Technology Acquisition and Adaptation, Michael Anpe, said technology would play a critical role in Nigeria’s transition to a more efficient energy future.
Anpe said smart energy systems, Artificial Intelligence and digital monitoring tools were already transforming energy management globally.
He urged Nigeria to strengthen collaboration among research institutions, universities, technology hubs and industries to ensure that innovations translated into practical solutions to the country’s energy challenges.
“We must move beyond research that remains on shelves towards innovations that solve real problems in Nigerian homes, offices, industries and communities”, he said.
Anpe noted that Nigeria had made progress in developing policies and institutional frameworks on energy efficiency but stressed that such policies would only achieve their objectives when effectively implemented and monitored.
Experts Raise Alarm Over Inefficient Imports
In his keynote address, Prof. Abubakar Sambo identified the influx of energy-inefficient appliances into Nigeria as another major obstacle to the country’s energy-efficiency ambitions.
Sambo said Nigeria’s porous borders had allowed energy-inefficient appliances to enter the country, creating a significant enforcement gap. He also noted that the country lacked adequate decentralised testing capacity to verify the energy ratings of appliances entering through its ports.
He consequently called for a shift from voluntary compliance to mandatory, customs-enforced compliance at the point of entry.
Sambo urged stronger cooperation between the Standards Organisation of Nigeria (SON) and the Nigeria Customs Service to prevent high-energy-intensity appliances from entering the Nigerian market.
“We must integrate compliance between the Standards Organisation of Nigeria and the Nigeria Customs Service to flag high-energy-intensity imports at the ports”, he said.
He described energy efficiency as Nigeria’s cleanest, cheapest and most abundant energy source, arguing that it required no new power plants but stronger political will to enforce existing regulations.
Minister of Power Joseph Tegbe addressing journalists during a media interactive session where he announced the Federal Governments plan to phase out electricity subsidies from 2027 while ruling out any immediate increase in electricity tariffs
Energy Efficiency Key To Economic Development
Meanwhile, Mrs Fatima Sheji, who represented the Federal Ministry of Budget and Economic Planning, described JICA as a strong and consistent partner in Nigeria’s national development.
She said energy efficiency affected virtually every sector of the economy, including infrastructure and education, making the workshop particularly important to Nigeria’s development agenda.
She urged the Energy Commission to fully support the programme and ensure that its outcomes were scaled across the country.
“This is very dear to the country because it will help industries, improve schools and support the all-round development of Nigeria”, she said.
Background
Nigeria’s energy challenge has continued to place enormous pressure on businesses, industries and households, with inadequate and unreliable electricity supply forcing many economic operators to depend on private power generation.
The dependence on diesel and other expensive fuels has significantly increased the cost of doing business, while energy inefficiency further compounds the problem by increasing the amount of power required to operate buildings, machinery, appliances and other equipment.
For industries already battling high operating costs, the energy burden can translate into higher production expenses, reduced competitiveness and increased prices for consumers.
The stakeholders at the Abuja workshop therefore emphasised that solving Nigeria’s energy crisis should not be limited to increasing electricity generation. They called for greater attention to reducing energy waste, enforcing efficiency standards, preventing inefficient appliances from entering the country and deploying technology to monitor energy consumption.
For JICA and the Energy Commission, improving efficiency represents a relatively immediate opportunity to reduce the pressure on Nigeria’s energy system while freeing businesses and industries from avoidable costs.
The push is ultimately to ensure that scarce energy resources produce maximum economic value, rather than allow loss of billions and trillions of naira through inefficient consumption and costly self-generation.