The Power Crisis You Didn’t Know Was Profitable: Nigeria Rechargeable Device Market and Decharge’s Entry Plan
Imagine coming home after a long day, only to find your house in complete darkness. This is the reality for millions of Nigerians.
Every night, over 200,000 Nigerian households are plunged into darkness. With the nation’s population of over 200 million people, a whopping 86 million people lack access to power. The frustration is palpable. Day after day, year in and year out, Nigerians face a relentless struggle with unreliable electricity. It’s a constant battle that leaves businesses suffering, families barely getting by, and students left trying to study by candlelight.
Indeed, The power crisis in Nigeria is more than just an inconvenience — it’s a source of constant frustration and lost potential.
However, the Question at the hearts of many Nigerians remains — WHY? Why are we forced to live with darkness in a country endowed with abundant energy resources? Why would a nation boasting the largest natural gas reserves on the continent and ranking as the 12th largest petroleum producer in the world, struggle to provide its citizens with consistent and reliable electricity?
You’ll find the answers by reading this. In this article, we will explore the root causes of Nigeria’s electricity crisis, the state of the energy sector, how Nigerians have adapted to survive, and how these adaptations have created a profitable market. We’ll also examine how Decharge plans to innovate in this dynamic landscape.
Ready? Let's dive in!
State of Energy in Nigeria: Why the Power Crisis Persists
The current state of energy in Nigeria is quite amusing and at the same time complex. How? You may ask. I’ll explain. All types of energy — thermal, chemical, or electrical — come from a source. This source is what generates the “energy,” and it’s found in natural resources like coal, wind, gas, and water (hydro). Fortunately, Nigeria has an abundant supply of these natural resources. The nation is so rich in natural resources that it ranks as the largest oil producer in Africa and owns the largest gas reserves on the continent. These resources are scattered across different states. But again, why does the gun have bullets but can’t shoot?
You’ve got the answer right there in the word “generate.” Among other issues, Nigeria’s ability to generate ENOUGH power to go around is a major problem. Why? Because generation is where electricity is born. If enough power isn’t generated, enough can’t magically be supplied.
It wasn’t always this bad. When Nigeria first started generating electricity, the megawatt-to-people ratio was pretty solid. The electricity we produced was enough for the population at the time. But as the years went by, the population kept growing, and our old generation sources just couldn’t keep up. As more people needed power, the demand shot up, but the supply didn’t. The infrastructure we relied on got outdated and couldn’t handle the load. Nigeria didn’t put enough effort into upgrading and expanding its power generation capacity.
Well, Experts, advisors, and some government officials have suggested that Nigeria should use more renewable energy sources like solar, wind, and biomass to diversify its energy sources. Especially considering our increased population and outdated infrastructure from over 30 years ago. But the government is slow to take action on these ideas and it boils down to a few big issues.
Corruption is a major problem; money meant for power projects often goes missing or gets mishandled. Bureaucratic red tape and bad management also slow things down, making decisions and getting projects done take forever. Plus, both the government and private investors aren’t putting enough into energy because the investment scene isn’t stable or attractive. Political instability and flip-flopping policies make it even harder to plan and fix things for the long haul. Basically, this suggests that the power issue is likely to persist for a while. It has been ongoing for quite some time, and these recommendations were proposed earlier.
Despite these challenges, Nigerians have had to adapt. Do they have a choice? The time it takes for expert suggestions to reach the government, let alone be discussed for implementation, is significantly lengthy. Will Nigerians wait and hope for the government while lacking electricity for basic needs? Will they watch their businesses suffer, or students struggle to study? Of course not. That's why they've been able to maintain their livelihoods.
As Ruth Maclean said in a recent article on the state of survival in Nigeria for the New York Times, “Nigeria’s more than 200 million citizens are skilled at managing in tough circumstances, without the services states usually provide.”, but how? I’m Nigerian, and I can still access electricity for basic needs. How do I do it? How do millions of Nigerians do it?
How Nigerians Adapt to Unreliable Electricity
In a situation where Nigerians can no longer rely on the government or the nation’s electricity supply, they’ve had to take matters into their own hands and generate their own power. The most popular method is through pull-start engines known as generators, which run on crude oil.
Nigerians have turned to purchasing these mini electricity generators that run on crude oil. With these generators, they've been able to generate electricity to power their homes, businesses, and even schools. This has been a significant help, allowing people to be self-sufficient in generating their electricity for themselves, independent of national faciltiies. However, with Nigeria’s inflation driving up the price of crude oil, not everyone can afford to run a generator anymore. Even for those who can, the cost of running one has become prohibitive, limiting the amount of electricity they can produce and forcing them to be more conservative. Additionally, there’s the ongoing expense of servicing and maintenance, which adds to the overall cost.
But what if there was a way to store some of the electricity generated? Imagine being able to save it for later use. This is where electric energy storage comes into play, but how?
The emergence of Nigeria’s rechargeable device market
Now, after generating power with the pull-start engines, people can store some of that energy for later use. That’s where rechargeable devices come in. These devices mainly use batteries to store energy. You charge these batteries using different sources of power, and then you can use that stored energy whenever you need it.
Over time, Nigerians started using these rechargeable devices more. They began with essentials like power banks, lamps, and even fans that could run on stored electricity during power outages. As the demand grew, manufacturers stepped up to meet supply, by making more devices with rechargeable batteries. What makes a market if not demand and supply? This created a whole new market for gadgets and appliances that don’t always need to be plugged in. Now, there are plenty of rechargeable devices and appliances, making it easier for Nigerians to manage when the power goes out and these devices are selling out fast!
However, Manufacturers didn't just stop at creating “devices” or home appliances with rechargeable batteries. Things got even better. How so?
Electric Vehicles (EVs) and Beyond: The Expanding Scope of Rechargeable Devices
Manufacturers didn’t just stop at creating gadgets with rechargeable batteries. They took it a step further, making rechargeable devices a central part of everyday life in Nigeria. One significant development has been the introduction of electric vehicles (EVs). Imagine not needing to rely on fuel for your car but instead charging it up like you would a phone or laptop. This shift is huge for a country where fuel costs are high and often unpredictable.
EVs are becoming more popular as they offer a solution to the problem of expensive fuel and provide a more sustainable option for transportation. But the question is, what would EVs look like in Nigeria? I mean we can afford to house rechargeable devices and appliances, but cars? vehicles that would transport people to and fro ? in a country that has its citizens generating their own electricity to survive. Would EVs be sustainable in Nigeria? or are there already EVs in Nigeria?
State of EVs in Nigeria and the Role Decharge plays
Contrary to popular opinion, electric vehicles (EVs) might have a chance of being suitable for Nigeria. In fact, EVs are already making their mark. There are electric rickshaws, known as “Keke,” zipping around, showing that the shift to electric transportation is already underway.
Ever since Vice President Yemi Osinbajo launched the first electric vehicle in Nigeria in 2021, there has been hope for more EVs on Nigerian roads. This event paved the way for other companies to introduce their own electric vehicles into the market.
For instance, Jet Motors has launched its Jet Mover EV, a versatile electric van. Also, Stallion Group introduced the Hyundai Kona, an electric SUV that’s gaining traction. Max.ng, a ride-hailing and logistics company, has started using electric motorcycles for deliveries.
These new EV brands are bringing excitement and a glimpse into a future where fuel dependency could be drastically reduced. EVs offer a sustainable and economical alternative, especially with the rising cost of fuel. However, there’s still a question on everyone’s mind: Will they last long, and can we sustain them?
A common concern about the sustainability of EVs in Nigeria is the limited number of charging stations. It’s a valid concern — how can EVs be a viable option if there aren’t enough places to charge them?
But this is where Decharge comes in.
What is Decharge?
Decharge is a project that taps into the power of blockchain technology and Decentralized Physical Infrastructure Networks (DePIN) to solve Nigeria’s EV charging problem. By using DePIN, Decharge aims to decentralize and spread out the creation and upkeep of charging stations, making it easier for communities to support EV infrastructure without needing big companies to step in.
Decharge steps in as a game-changer by offering a network of charging stations that are easy to find, reliable, and built on a transparent, decentralized platform. Blockchain ensures that all transactions and operations within the network are secure, clear, and trustworthy, making everyone feel safe using it.
How Decharge Plans to Fit into the Market
Decharge aims to seamlessly fit into the Nigerian market by setting up charging stations in strategic spots across cities and villages to ensure easy access for everyone.
They will use blockchain technology to manage and monitor the network, ensuring smooth and transparent operations. By partnering with local communities, businesses, and the government, Decharge will promote and support EV infrastructure.
They plan to run awareness campaigns to educate people about the benefits of EVs and the ease of using Decharge’s network. Additionally, they will offer flexible pricing and incentives to make using their charging stations economical for all.
Opportunities for Decharge in the Rechargeable Energy Market
Decharge can create and capture market share in the rechargeable energy market by:
1. Expanding Charging Infrastructure: Setting up a wide network of charging stations in both urban and rural areas, making EV charging convenient for everyone.
2. Collaborating with Local Businesses: Partnering with local businesses to integrate charging stations, offering mutual benefits and increased visibility.
3. Government Partnerships: Working with the government to support policies and incentives that promote EV usage and infrastructure development.
4. Community Engagement: Involving local communities in the establishment and maintenance of charging stations, fostering a sense of ownership and support.
5. Innovative Technology: Leveraging blockchain and DePIN to ensure secure, transparent, and efficient operations, building trust among users.
6. Public Awareness Campaigns: Educating the public about the advantages of EVs and how Decharge can make the transition easier and more affordable.
7. Flexible Pricing Models: Offering competitive and flexible pricing options to attract a broad range of users, making EV adoption more accessible.
With these strategies, Decharge is poised to make a significant impact on Nigeria’s rechargeable energy market, supporting the growth of EVs and contributing to a more sustainable future.
