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JICA Warns Nigeria Over High Cost of Energy Inefficiency

The Japan International Cooperation Agency (JICA) has urged Nigeria to urgently adopt energy-efficient technologies, warning that inefficient energy use is imposing a heavy financial burden on businesses and undermining the country’s productivity and energy security.

JICA’s Chief Representative in Nigeria, Ishigame Keiji, raised the concern in Abuja at a two-day national workshop on energy efficiency and conservation organised by JICA in collaboration with the Energy Commission of Nigeria (ECN).

The workshop, themed “Accelerating Energy Efficiency and Conservation in Nigeria: From Policy to Implementation, Regulation and Measurable Impact,” brought together policymakers, regulators and industry stakeholders.

Keiji described energy efficiency as the “first fuel”, noting that the cheapest unit of energy was the one that did not have to be produced.

He said Nigeria could significantly reduce energy costs and improve productivity by deploying efficient technologies across buildings, industries, transportation and household appliances.

“By adopting energy efficiency technologies in buildings, industries, transportation and appliances, Nigeria can reduce energy costs, improve productivity and enhance energy security,” he said.

Keiji said Japan’s development experience had demonstrated that energy efficiency could drive economic growth and industrial competitiveness, reaffirming JICA’s commitment to supporting Nigeria’s transition towards sustainable and inclusive energy development.

Industries Lose Trillions to Energy Costs

The Director-General of the Energy Commission of Nigeria, Mustapha Abdullahi, disclosed that Nigerian industries spend trillions of naira annually on energy, with a significant portion going towards diesel-powered electricity generation.

He described diesel-generated power as one of the most expensive and inefficient energy sources available to businesses, saying the cost was undermining production, investment and job creation.

“Inefficiency in the energy chain is money leaving the productive economy for no productive return,” Abdullahi said.

He stressed that energy-efficiency policies must be supported by clear standards and effective institutions capable of enforcing compliance.

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Experts Seek Stricter Appliance Controls

The Minister of Innovation, Science and Technology, represented by the Director of Technology Acquisition and Adaptation, Michael Anpe, said technology would be critical to improving Nigeria’s energy efficiency.

He called for greater collaboration among research institutions, universities, technology hubs and industries to ensure that innovations translate into practical solutions.

In his keynote address, energy expert Prof. Abubakar Sambo also raised concerns over the influx of inefficient electrical appliances into Nigeria, blaming weak enforcement and inadequate testing facilities.

Sambo called for mandatory compliance at ports and stronger cooperation between the Standards Organisation of Nigeria (SON) and the Nigeria Customs Service to prevent energy-intensive appliances from entering the country.

“We must integrate compliance between the Standards Organisation of Nigeria and the Nigeria Customs Service to flag high-energy-intensity imports at the ports,” he said.

Efficiency Key to Economic Growth

Representing the Federal Ministry of Budget and Economic Planning, Fatima Sheji described energy efficiency as critical to Nigeria’s broader development, noting its impact on industries, infrastructure, education and households.

Stakeholders at the workshop agreed that addressing Nigeria’s energy challenge should go beyond increasing electricity generation to reducing energy waste, enforcing efficiency standards and improving energy monitoring.

With businesses and households spending heavily on diesel and other fuels due to unreliable electricity supply, the stakeholders said improving energy efficiency could provide a relatively immediate way of reducing operating costs and easing pressure on the country’s energy system.

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