Nigeria's ambitious energy transition and economic
development goals are critically hampered by a pervasive energy deficit and an
over-reliance on volatile fossil fuels. While nuclear power presents a
compelling solution for delivering stable, low-carbon baseload electricity, its
historical challenges (prohibitive capital costs, complex risk profiles, and
stringent regulatory demands) have stalled its adoption across emerging
economies. This study addresses a critical gap in the literature by moving
beyond technical feasibility studies to propose a holistic, Nigeria-specific
framework that synergistically combines innovative economic models, targeted
legislative incentives, and robust risk mitigation strategies to de-risk
nuclear investments. Through a mixed-methods approach involving systematic
literature review, comparative policy analysis, and preliminary economic
modelling, the study evaluates the fundamental economic determinants of nuclear
viability within Nigeria's unique context. It identifies the high cost of
capital, driven by perceived risks, as the primary barrier. A quantitative
analysis shows that with a weighted average cost of capital (WACC) reduced from
a risky 12% to a de-risked 8%, the Levelized Cost of Electricity (LCOE) for
nuclear power in Nigeria could fall from approximately $102/MWh to a
competitive $72/MWh. Consequently, the chapter prescribes a detailed framework
encompassing financial instruments like tax credits and sovereign guarantees,
legislative reforms for regulatory certainty, and layered risk-sharing
mechanisms. The analysis concludes that nuclear energy's economic viability in
Nigeria is not intrinsic but can be engineered through deliberate policy and
legislative action. The chapter advocates for a phased strategy, prioritising
Small Modular Reactors (SMRs), and provides a concrete, actionable roadmap for
policymakers to translate nuclear ambition into tangible, bankable projects.
Author(s) Details
EZREL TABIOWO
National Assembly, Federal Republic of Nigeria, Three Arms Zone, Abuja-FCT,
Nigeria.
Please see the book here :- https://doi.org/10.9734/bpi/psniad/v3/6465
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