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  • Background of the Study


The first paragraphs of the thesis tell the background of the thesis, followed by research objectives, research problems, and research questions. Thereafter, are presented the limitation, definition of key words and disposition of the thesis.


1.1  Background


Nigeria is the most populous black nation in the world and despite its huge natural resources it is still one of the poorest countries in the world with an estimated GDP per capita of $ 2,162. For many years the country has been facing energy crisis that is hampering its economic development. Energy is one of the key fundamentals for economic development and also it is fundamental to all human activities in this era. There is an extreme electricity deficiency in Nigeria and the causes of this deficiency are related to financial, sociopolitical, and structural issues which leads the power sector in Nigeria to be recording high energy losses from power generation and billing which lead to insufficient cash generation as a result of these inefficiencies (A. Iwayemi 2008).


An estimated 60-70% of the Nigerian population does not have access to electricity. Energy demand in Nigeria is dominated by fuel wood and women and children are the most affected in the energy crisis. At present only 10 % of rural households and 30- 40% of the country’s total population has access to electricity (Sambo 2007). The energy sector in Nigeria totally rely on government subsidize fuel and funding of major energy plants and energy capital projects by the federal government, states and government agencies.


Nigeria is endowed with vast oil and gas reserves and also an abundance of renewable energy potentials. Yet the country is suffering an energy crisis, which has a major impact on its ability to reduce poverty and achieve the Millennium Development Goals (MDGs).


Perhaps it is only individuals that are neither living nor doing business in Nigeria who will not know that lack of adequate energy supply especially electricity, is the major

challenge the country is facing to fully utilize its economic potentials in other to achieve economic development. This is also the most significant factor which is affecting the country’s race to be one of the biggest and top twenty economies of the world by 2020. It is also evidently the issue how to find lasting and permanent solutions to the problems has remained a priority of every successive government in the last ten years.

The Nigerian government has not been able to find permanent solutions that will resolve the problems due to the adaptation of short term, hasty policies and also still undergoing energy projects which are detriment to long term energy policies that will help the nation to achieve sustainable energy and energy efficiency. For example, what the country have done is still usage of the various alternatives that are still within the limits of fossil fuels, which are the only source that currently powers the nation economy (J. Kennedy-darling, N. Hoyt, K. Murao, A. Ross, 2008).

1.2      Research Objectives

Access to energy is fundamental for socio-economic development and poverty alleviation. A huge development challenge in Nigeria is reaching out to the 60-70% of the Nigerian population that does not have access to electricity and modern energy services. Renewable energy technology is a promising solution to the energy crisis in Nigeria. Renewable energy, apart from being sustainable and inexhaustible, it can be set up in small units and is therefore suitable for community management and ownership (Uyigue, Agho, Edevbaro, 2007). Adopting the use of renewable energy sources will lead Nigeria to achieve stable energy supply and also achieve energy efficiency.


Alternative energy sources are good and wonderful options because they are limitless. We will not run out of them as we may run out of the fossils fuels which are the major sources of energy in Nigeria. Also it is not only the declining levels of fossil fuels that is the only major concern that will make Nigeria to adapt and switch to the use of renewable energy sources. Climate change, which is cause as a result of carbon emissions and environmental pollution, is drawing world attention and forcing national governments to formulate policies that will make their nations adapt the use of renewable energy sources to cut environmental pollution to the bearest minimum because global warming has become a major issue and problem of the world today and in the future.


The objective of this study is to investigate the potentials of renewable energy sources in Nigeria and how to support, promote and courage the growth of renewable energy resources in Nigeria to close the gap of 60-70% of Nigerians that did not have access to energy that is environmentally friendly.


1.3    Research Problems and Research Questions


The research problem of this study is what is the potential of renewable energy inNigeria? Which is aim to find answers to the research questions.


  • What are the economic and social factors affecting the use and growth of renewable energy sources in Nigeria?


  • What are the technical related problems companies faces in building an alternative source of energy in Nigeria?


1.4    Limitation


In the course of carrying out this study, the researcher faces some problems, which prevents him from achieving the desired result. Below are the limiting factors that hinder the effectiveness of this research study.


Number of respondents and inability to co-operate fully with the researcher


This is one of the limiting factors that hinder the effectiveness of the research work; total number of the target population is small, although the sample represents the target group. Due to the population size the number of the respondents may not effectively represent the most common opinions of the population. The sample size was affected by the fact that the researcher could not physically go to Nigeria to be able to distribute the questionnaires more to the people as a result he is depending on contacts in Nigeria and their help and also to conduct physical interviews. Most of the interviewers from government agencies were afraid in the sense that due to the sensitive nature of energy issues in Nigeria, they want to keep their secret within the organization or thought that information they will give might be used against them.


Finance and Interconnection of the Topic


Money also posed a limiting factor in which the researcher was unable to go to some areas which had been spelled out due to the lack of funds and also print as many questionnaires as possible to have a larger sample size which will truly represent the population. The interconnection of the topic is another limiting factor of the study because it hard for the researcher to concentrate only on business energy without mentioning some technical aspects of the energy system.


1.5                 Definition of Key Words

Renewable Energy: Derived from resources that are naturally regenerative or are practically inexhaustible, such as biomass, heat (geothermal, solar, thermal gradient), moving water (hydro, tidal, and wave power), and wind energy. Municipal solid waste may also be considered a source of renewable (thermal) energy.

Solutions:  suggested  or  implemented  to  try  and  solve  a  question  or  problem.

Crisis: Critical event or point of decision which, if not handled in an appropriate and timely manner (or if not handled at all), may turn into a disaster or catastrophe.


1.6      Disposition of the project


Chapter one gives the background information of the study and a problem of discussion of the research area, which leads to two research questions that have been mentioned earlier. Chapter two discusses the energy process and presents the four renewable energy sources and how to generate energy from these sources. In chapter three, the reader will understand the energy situation in Nigeria, the projected energy demand and supply, factors that are affecting growth of renewable energy in Nigeria and the projected renewable energy growth. Chapter four covers and explains the methodologies that were used in the course of the research and provides information of the public institutions and the two case companies. Chapter 5 contains the results and analysis of the thesis from the data that were collected. Chapter six is the conclusion, suggestions and summary which will help further research, Nigerian public, institutions and companies that are interesting in the growth of renewable energy in Nigeria.



Chapter 1 Introduction


Chapter 2 Renewable Energy Sources


Chapter 3 Energy Situations in Nigeria


Chapter 4 Methodology


Chapter 5 Results and Analysis of the thesis


Chapter 6 Conclusion and Suggestions


Figure 1. Disposition of the project.


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