A recent report by Sustainable Energy for All (SEforALL) has brought attention to the staggering economic and environmental toll of Nigeria’s reliance on petrol-powered generators, commonly known as gensets. Nigerians are spending approximately $10 billion each year on fuel and maintenance to power these generators, which have become a necessary fallback due to the country’s unreliable electricity grid.
This dependence on generators is not just a financial strain but also a growing health and environmental crisis. According to the report, genset emissions contribute 39 million tons of CO2 annually, a figure that rivals the emissions of entire countries such as Rwanda and Gabon. In Lagos State alone, the environmental burden is alarming, with 72% of households and 94% of businesses relying on gensets as a primary source of power. The pollution from these generators is linked to serious health issues, including an increased risk of lung cancer and respiratory problems, contributing to over 1,500 deaths each year.
For small businesses and households, the cost of operating these generators has soared, especially after the removal of fuel subsidies. Many small and medium-sized enterprises (SMEs) are forced to allocate between N20,000 and N40,000 monthly just for fuel, placing additional pressure on their operations. This ongoing expenditure has sparked calls for a shift toward cleaner and more sustainable energy solutions.
The report advocates for the adoption of solar energy as a viable alternative to gensets. Though the initial investment in solar photovoltaic (PV) systems is high, the long-term benefits far outweigh the costs. Over a ten-year period, solar systems are only 20% more expensive than gensets, making them a more sustainable and cost-effective option. Furthermore, financing solutions such as lease-to-own models could help ease the financial barrier, making solar energy accessible to more Nigerians.
Lagos, Nigeria’s economic hub, is poised to lead this transition. The Lagos State Government, with support from SEforALL, is working towards implementing a distributed solar PV program aimed at reducing the state’s dependence on gensets. This initiative is part of the broader goal of achieving universal energy access by 2030 and net-zero emissions by 2060.
The transition from gensets to cleaner energy sources could bring significant environmental, economic, and health benefits, but it requires urgent action and coordinated efforts from the government, private sector, and international partners. As Lagos embarks on this ambitious energy transition, it sets a crucial example for the rest of Nigeria in tackling one of the most pressing energy challenges of our time.
Source: Based on the SEforALL Report, “Beyond Gensets: Advancing the Energy Transition in Lagos State”
