Nigeria represents a huge market opportunity for Seplat Energy, both in today’s hydrocarbon-based energy industry, and in the lower-carbon, renewable industry of the future.
With a population of 200m projected to grow to 330m by 2040, improving access to energy is Nigeria’s transition imperative as only an estimated 57% of its population have access to electricity, suggesting there is significant potential for growth.
The country is blessed with abundant resources, close to major population centres, and has well-proven geology that is being tapped by a long-established industry, supported by good infrastructure and regulatory and fiscal regimes. It has Africa’s largest oil and gas reserves as well as significant potential for solar, hydro-electric and wind power.
But there are impediments: the national grid is undeveloped and of a potential 12.GW installed generating capacity, only 4-5GW actually reaches the customer and power blackouts are frequent. Of those with access to electricity, most are reliant on small-scale, inefficient and expensive diesel or petrol generators, resulting in the world’s highest cost of energy in the world at 52 cents per kWh.
Some 80% of Nigeria’s total energy use is biomass for cooking, which creates significant problems of deforestation, land erosion and particulate pollution.
Nigeria’s transition priorities represent significant opportunities for Seplat Energy: develop gas-to-power as a major step towards improving energy access, develop LPG markets to alleviate use of biomass, and develop renewable energy to serve large areas of the country not currently served by the national grid.
Seplat Energy is the investment partner of choice for Nigeria’s transition to cleaner energy production.