The Japan International Cooperation Agency (JICA) has identified energy inefficiency as a significant obstacle to Nigeria's economic productivity. According to JICA, businesses can substantially reduce operating costs and enhance productivity by adopting energy-efficient technologies. This is crucial as energy inefficiency is quietly inflating business costs and weakening productivity.
Ishigame Keiji, Chief Representative of JICA in Nigeria, emphasized the importance of energy efficiency, describing it as the "first fuel". He stated that the cheapest unit of energy is the one that does not have to be produced. Keiji made these remarks at a two-day national workshop on energy efficiency and conservation organized by JICA and the Energy Commission of Nigeria (ECN).
The workshop, themed "Accelerating Energy Efficiency and Conservation in Nigeria: From Policy to Implementation, Regulation and Measurable Impact," aimed to bring together policymakers, regulators, and implementers to agree on specific actions and timelines. JICA stressed that energy inefficiency affects not only electricity consumption but also leads to industries spending heavily on self-generated power.
The use of inefficient appliances and systems by households, businesses, and public institutions further compounds the issue. Keiji noted that improving efficiency across buildings, industries, transportation, and appliances can lower energy costs, increase productivity, and strengthen the country's energy security. By adopting energy-efficient technologies, Nigeria can reduce energy costs and enhance energy security.
Japan's development experience has shown that energy efficiency can drive economic growth and industrial competitiveness. Keiji stated that JICA remains committed to supporting Nigeria's efforts towards sustainable and inclusive energy development. The agency hopes that the workshop will produce a practical roadmap to guide future investment and institutional collaboration.
Dr. Mustapha Abdullahi, Director General/Chief Executive Officer of ECN, highlighted the economic cost of energy inefficiency, revealing that industrial energy expenditure in Nigeria runs into trillions of naira annually. A significant portion of this expenditure goes into diesel-powered self-generation, one of the most expensive and least efficient sources of energy available to Nigerian industries.
Abdullahi emphasized that the scale of spending on energy inefficiency diverts resources that could otherwise be deployed into production, expansion, employment, and investment. He stressed that energy efficiency policy must be backed by clear standards and institutions able to enforce them to change outcomes on the ground.
Key points
- Energy inefficiency costs Nigerian industries trillions of naira annually.
- JICA advocates for mandatory standards and enforcement to curb energy waste.
- Energy efficiency can drive economic growth and industrial competitiveness.
