In comparison with renewable energy technologies such as solar panels, biofuels and wind turbines, energy conservation and efficiency is nearly invisible. Local stakeholders are yet to appreciate the urgency and monumental savings that could result from improved energy efficiency in Nigeria.

Many experts have argued that doing more with less power may be an even more critical weapon in the struggle to achieve energy security and also offers big economic benefits for Nigeria’s emerging economy. Energy plays an essential role in the financial and economic performance of any business.

The efficient and rational use of energy offers a unique opportunity for businesses and organizations to save resources, enhance their business and production processes, and ultimately have a positive impact on the environment. Increasing energy efficiency is logistically complicated especially in a country like Nigeria.

This is because it requires many agencies, organizations and individuals to take an enormous amount of small steps, and successive governments have failed to vigorously pursue potential savings.

Germany which was recently ranked by a reputable American organization as the most efficient of the world’s 16 largest economies scored only 65%. It is very common to assume we know a lot about energy efficiency as a result of local and international advocacy efforts around the subject in recent times.

According to a recent poll conducted by Energy Savers Nigeria, about 11% of Nigerians in urban areas make a conscious effort to turn off the lights when they leave the room or office and close the refrigerator door immediately after removing a cold drink or food.

It is becoming increasingly clear that it is cardinal for consumers to be more energy efficient but what about industrial and commercial organizations? What about government parastatals and agencies? A 2015 report by US based Center for Energy Efficiency and Sustainability (CEES) concluded that a 10% improvement in the energy efficiency of industrial and commercial buildings would amount to about $20 billion in savings and an estimated prevention level of greenhouse gas emissions (GHGs) would be equal to the emissions from about 30 million vehicles.

Given these numbers one can only stare in incredulity as to why many governments, businesses and industries aren’t prioritizing energy efficiency. Over the years, several barriers have hindered the ability of public and private sector participants to support, promote and commit resources towards raising the level of awareness and providing reliable systems and services that can help organizations dramatically increase energy efficiency in Nigeria. Globally, the regulatory environment around energy efficiency is evolving and many stakeholders are reluctant to make significant investments for fear of uncertainty.

Even for developed economies, striking the right balance between government incentives and regulations around energy efficiency is a daunting task. Perceived red tapes and mixed messages impact businesses negatively and leaden the adoption of more efficient technologies. Government must create a regulatory environment that conveys rational expectations, clear long-term signals and opportunities for a reasonable return on investment.

There also exist several financial barriers which involve high up-front costs, operations with a huge risk and significantly high transaction cost. The lack of awareness of financial benefits on the part of financial institutions and a lack of green products for financing energy efficiency practices and technology have also contributed negatively to the adoption of energy efficiency locally.

This is further compounded by insufficient information on the benefits of energy efficiency to support investment decisions. Given the competing priorities for capital in an emerging economy like Nigeria, many companies may not recognize the long-term value of reduced energy use and indirectly reduced greenhouse gas emissions because new technologies tend to be more expensive and may increase operating costs in the short term. So despite the growing consumer awareness, until there are significant changes in the value paradigm in the industrial sector, it will be difficult to make real progress towards improved energy efficiency.

Energy efficiency is considered by many experts to be a low-hanging fruit within a range of measures that can be adopted to obtain energy savings. It has been empirically proven to be the least costly approach for businesses to benefit from reduced operational costs while reducing greenhouse gas emissions. The Nigerian industrial sector offers tremendous opportunities for energy savings, and a significant opportunity to instill the principle of energy efficiency within facilities that invariably employ and influence millions of people. I strongly believe that the use of revolutionary technologies and systems, new building design concepts and a more robust regulatory regime can help to remove many of these barriers and increase the return on investments in efficiency for both private and public sector players.