Sustainable Energy Security for Nigeria Through Innovative Financing Mechanisms

Abstract

The existence of a viable and efficient power sector is crucial to the development of the social and economic development of any country. Against this background, the present study examines challenges facing the Nigerian power sector that has made it unable to contribute its quota to the development and growth of the country. Literature and data reviewed indicate that Nigeria currently generates less than 50% of available generation capacity, which is largely attributable to the existence of a financing gap that has led to a non-viable and non-sustainable sector. The inability to secure project finance for the sector undoubtedly hinders the attainment of Goal 7 of the United Nations Sustainable Development Goal of access to affordable, reliable, sustainable and modern energy for all. In view of the successes recorded with the use of the auction and forfaiting models especially as it relates to developing countries, the study proposes applying these models to the electricity sector in Nigeria in order to garner the benefits derivable from their use.

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Keywords

Energy Security, Financing, Innovation

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