The Japan International Cooperation Agency (JICA) has expressed concerns over Nigeria's energy inefficiency, warning that the country's industries are bearing huge energy costs that undermine productivity, competitiveness and economic growth. JICA's Chief Representative in Nigeria, Mr Ishigame Keiji, made the remarks at a national workshop on energy efficiency and conservation in Abuja. The workshop was organized by JICA in collaboration with the Energy Commission of Nigeria (ECN). 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.
According to Keiji, Nigeria can substantially reduce energy costs and improve economic productivity by adopting energy-efficient technologies in buildings, industries, transportation and household appliances. He cited Japan's development experience, which demonstrated that energy efficiency could serve as 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. The workshop aimed to produce a practical roadmap for guiding future investments, strengthening institutions and improving collaboration among stakeholders in the energy sector.
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. A significant portion of this amount is spent on self-generated diesel power, which is described as the most expensive and least efficient energy source available to Nigerian industries. Abdullahi warned that the enormous cost of energy was undermining productive activities across the economy. He suggested that the huge amount spent on energy could otherwise be deployed to expand businesses, create jobs, improve production capacity and strengthen Nigeria's industrial base.
Abdullahi emphasized that 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. 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. The Energy Commission of Nigeria is working to address the issue of energy inefficiency in the country.
Prof. Abubakar Sambo, a notable expert, warned that energy-inefficient appliances continue to enter Nigeria through its porous borders. He called for mandatory compliance and stronger collaboration between the Standards Organisation of Nigeria and Nigeria Customs Service at the nation's ports. This collaboration aims to regulate the importation of energy-efficient appliances and reduce energy costs.
The Minister of Innovation, Science and Technology, represented 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 noted that 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.
Anpe stressed that Nigeria had made progress in developing policies and institutional frameworks on energy efficiency but emphasized that such policies would only achieve their objectives when effectively implemented and monitored. The Federal Government is pushing for technology-driven energy efficiency, and the workshop provided a platform for stakeholders to discuss ways to improve energy efficiency in Nigeria. The country aims to reduce energy costs and improve productivity.
Key points
- Nigeria's industries lose substantial resources to inefficient energy use.
- The country must adopt energy-saving technologies to cut costs and boost productivity.
- Energy efficiency policy must be backed by enforceable standards and institutions.
