Energy Sector Governance and Cost Reflective Pricing in West Africa

This study was carried out to consider the effectiveness of energy sector governance and electricity pricing in Nigeria – which also has implications for West Africa’s power pool and energy policies in the region. This paper applies the concept of cost reflectivity to analyze the current electricity tariff regime in Nigeria. Multi Year Tariff Order (MYTO) 2015 methodology was applied in the analysis - employing the marginal cost (MC) and marginal revenue concepts (MR). It was noticed that, the cost of providing a unit of electricity (1 kWh) varies by region while the revenue generated from providing the same unit of electricity also varies by region. However, energy sector governance in the main West African electricity market - Nigeria - is very weak. While, a competitive market structure is gradually emerging, debts accrue along the value chain with every unit of power consumed. More so, the underlying assumptions of the methodology have been consistently violated and as such tariffs have not been completely cost-reflective. Some underlying assumptions of the MYTO methodology need to be reviewed for it to sufficiently de-risk energy investments in Nigerian Electricity Supply Industry (NESI) especially against macroeconomic shocks

Oil Price Volatility and Inflation Rate: Lessons for Overcoming Recession?

An important question is “what are the best options for diversifying a mono-product economy in recession?” Nigeria becomes a good case-study - as rising oil prices portend recovery for her economy, this paper explores the effects of variations in international crude oil prices and shocks on Nigeria’s inflation rate. To better highlight her situation, we analyze inflation rate changes in the twenty-year period (1996 – 2016) with respect to oil price volatility. A detailed analysis of the instability of inflation in Nigeria was performed by correlating it with international crude oil prices, domestic consumer price index and oil export proceeds by creating a VAR model and testing it for trends and correlation. The research reveals that the inflation rate is directly and indirectly affected by changes in oil prices in international markets. However, it was also discovered that shocks in oil prices do not immediately affect inflation rates significantly, but do have a delayed ripple effect that becomes detectible over time. The study also identifies reasons for unexplained variations in statistics and subsequently provides recommendations to minimize Nigeria’s vulnerability to international oil price shocks. One of which is to deepen the financial sector towards channeling resources to the real sector as money supply increases. Second, is to consider the effects of demographic changes on monetary policy measures. Finally, to incorporate the excess supply and its asymmetric effects on international and domestic prices

Adopting Hybrid Energy Technology for Carbon Emissions Reduction in Nigeria’s Telecommunications Industry

Telecoms cell sites, powered by petrol and diesel generators, have high carbon footprints and contribute increasingly to global warming, and thereby climate change. Utilizing primary data from telecom cell sites of a major operator in Nigeria, this study empirically determines the firm’s CO2 emissions and considers how hybrid energy technology (HET) could be adopted to reduce the industry’s carbon footprint. Data of fuel utilization in power generation are applied to compute CO2 emissions. Towards reducing the firm’s and industry’semissions, hybrid energy technology options for incorporating solarin the energy mix are considered. Hybrid energy technologies optimize existing hydrocarbon generating plants with photovoltaic panels and storage batteries to provide minimum capacities for powering the electronic devises.Results show that HET opportunities exist for most telecom firms’ cell sites given Nigeria’s geographical advantage to access sunlight. In addition, through the adoption of hybrid energy, average daily fuel usage is reduced by 50% (apart from periods of peak demand and weather disruptions). If adopted by the major telecoms operators, as recommended, greenhouse gas emissions level in the industry will reduce significantly.A few notable challenges are highlighted in the paper. However, job creation in the renewable energy industry is a notable advantage of transforming power generation in the telecommunications industry

Can green infrastructure development in cities be equitable? An eclectic review of Dundee City’s electric vehicles strategy.

Dundee City has been successful in installing green infrastructure for charging electric vehicles (EVs). This intervention apparently matches the sustainable development goals (SDGs) of affordable clean energy (7), sustainable cities and communities (11) and climate action (13). Local authorities can align interventions with SDGs according to needs. Thus, we undertake an eclectic examination of the elements of the plan against the city’s peculiar socio-economic environment, questioning whether the EV plan is equitable for the city’s residents. Equitability may be either the complementarity and benefits of the strategy from the obvious lenses of SDGs 7, 11 and 13 or the alignment or otherwise of the EV strategy with the other SDGs. We note that the EV strategy achieves some equitability but does not fully address all inequalities. Although this approach could be adopted by smaller, similar or bigger cities, we recommend that local priorities should be ranked to improve alignment with SDGs

Post-COVID-19 and African agenda for a green recovery: lessons from the European Union and the United States of America.

The concept of a ‘green new deal’ for Africa will provide a joined-up approach to managing the impact of extreme climatic events. In this regard, the United States (US) and the European Union (EU) green deal arrangements offer Africa lessons to consider in a green agenda. By recourse to green theory, which is a critique of existing power structures and nationalistic and political positions concerning climate change, we explore mechanisms for fostering collective action and collaboration through an African green deal. Building on the African Union’s existing agencies and arms, this chapter argues that an African Union Green Deal post–COVID-19 is crucial to achieving sustainable economic growth and development within the continent’s Agenda 2063. The African continent should take advantage of collaboration opportunities within the continent and the European Union, thereby strengthening its financing and governance structures

Meta-Analysis of Electricity Pricing in West Africa

A meta-analysis is undertaken to ascertain how prices are integrating in West African electricity markets. It examines the extent West African Power Pool (WAPP) contributes to power price interactions within ECOWAS. Unit electricity prices to end-users, in US cents/kWh, for fourteen (14) countries in the WAPP are obtained by reviewing existing literature. Electricity price data in different countries are collated from 2010 to 2017 and analyzed for variation over time. It is found that end-users pay varying prices for power in different countries depending on their access and nearness to the source of electricity. The exercise reveals that the WAPP, though laudable, is yet to have a significant effect on electricity pricing within the sub-region. This is due to financing and price risks, as well as, regulatory and policy challenges - affordability and cost recovery. However, bilateral agreements between certain countries have helped to ease electricity trading within the region

Investigating the Nexus of Climate Change and Agricultural Production in Nigeria

This study examined the relationship between climate change and agricultural production (crop and livestock) in Nigeria using time series data from 1981-2017. Variables used to depict climate change are mean annual rainfall, temperature and carbon dioxide emissions. Data on crop yield was collated for 17 major crops produced in Nigeria with the livestock production index of Nigeria. Econometric analysis was carried out using autoregressive distributed lag (ARDL). The results showed that there is a long run relationship between climate change and crop production while no long run relationship exists between climate change and livestock production. Furthermore, evidence is provided that rainfall and CO2 emissions have a positive and significant effect on crop yield in the long run while temperature has a negative and significant effect on crop yield in the long run. It also was seen that four period lagged rainfall has a positive and significant effect on livestock production; two period lagged temperature had a negative significant effect and one period lagged CO2 emissions had a negative significant effect on livestock production in Nigeria. Consequently, policy recommendations are offered for the government to meet its sustainable development goals

Addressing Poverty In Nigeria through Fertility and Female Labour Force Participation.

This study investigated whether the rising fertility rate is responsible for low female labour force participation and simultaneously increasing the poverty level in Nigeria. Autoregressive distributed lag (ARDL) model was used to analyze the variable of interest. The results showed bi-directional causality between fertility rate and female labour force participation in Nigeria, while a uni-directional causality exists between fertility rate and poverty level; and between female labour force participation rate and poverty level, respectively. In addition, it was found that cointegration exists only between poverty level and fertility rate as none exists between poverty and female labour force participation. Furthermore, fertility rate is significant for increasing poverty level, while one period lagged female labour force participation rate is only significant in reducing present period poverty. The study recommends that the government formulate policies that encourage mothers to productively participate in formal businesses towards achieving Sustainable Development Goals 1, 2 and 5

Determinants of Renewable Energy Consumption in Nigeria: A Toda Yamamoto Approach

Nigeria has inadequate power supply and this issue has lingered for years despite power sector reforms. Renewable resources could to be offering sustainable alternative energy supply in rural and urban regions of Nigeria. So, the key factors that determine the utilization of renewable energy in Nigeria are estimated in this paper for a period of twenty-four years using toda yamamoto method. Long-run relationship exists between renewable energy consumption and its determinants in Nigeria. Real income (real GDP) and emissions of CO2 are the most significant determinants of oil products import demand in Nigeria. Trade Openness was found to be insignificant. The analysis showed no causality between the consumption of renewable energy and some of its determinants. However, unidirectional causality runs from CO2 emission to GDP which implies that fossil fuels are significant drivers of real GDP or economic growth for Nigeria. It is evidenced that environmental considerations are less critical than real income to the consumption and development of renewable energy in Nigeria. Policy-makers should proffer incentives and measures that incentivize increased production and consumption of renewable energy while driving macroeconomic stability – especially in post COVID- 19 era

MODERN AGRICULTURE AND EMPLOYMENT GROWTH IN NIGERIA

Nigeria is blessed with abundant land resources, its agricultural land, has been increasing which means it has a higher advantage in boosting agricultural productivity and employment growth in the economy, but this potential is not being realized. This study is aimed at examining the impact modern agriculture on employment growth in Nigeria. The methodology adopted for the study is the Recursive Ordinary Least Square estimation method. The variables used in the model are: Foreign Direct Investment, Export, Export Price Index, Agricultural Value Added per Worker, Agricultural Output, Agricultural Machineries & Tractor, Agricultural Credit, Inflation Rate, Exchange Rate, Government Expenditure on Education and Employment Rate. Using time series data spanning from 1980 to 2014, the result shows; a significant and positive relationship between agricultural productivity growth and modern agriculture, a significant and negative relationship between export price index and agricultural productivity growth, a significant and positive relationship between export and investment, a significant and positive relationship between investment and employment growth. Based on the findings, the author suggests that government should pursue a balanced growth of both agricultural sector and industrial sector in order to ensure both forward and backward linkages between the two sectors for the overall development of Nigerian economy