New initiatives aim to mitigate the effects of climate change in Nigeria's megacity
Lagos is laying the foundation for a greener future
If any city in Africa is feeling the full force of pollution and the effects of climate change, it’s Lagos, Nigeria’s megacity of more than 23 million people that is predicted to become the world’s largest city by 2100.
Today, more than 1.6 million cars ply Lagos’s congested roads daily, churning out millions of tons of emissions. Meanwhile, polluting petrol- and diesel-powered generators account for about 80 percent of electricity production in the city, which is notorious for blackouts and an unreliable grid.
The result of all the smoke and fumes? The Lagos State Environmental Protection Agency reported more than 30,000 pollution-related premature deaths in Lagos in 2021 alone.
These gathering environmental threats to quality of life have inspired Lagos’s authorities to introduce policies and initiatives to help mitigate the effects of climate change and pollution and to adapt, where possible.
In 2018, Lagos State signed up to the C40 Cities initiative, a network of mayors from cities around the world that commit to reducing emissions.
In 2020, Lagos launched a five-year climate action plan that prioritizes actions towards zero-carbon development goals in sectors including transport, agriculture, energy, and waste management.
And in October 2022, Lagos published an ambitious 30-year development plan that highlights how the city can expand sustainably by upgrading and greening its transportation, power and energy, digital, water, and sanitation and waste management infrastructure.
According to experts, the private sector can support Lagos in enhancing the resilience of the city’s population, economy, and infrastructure to the impacts of climate change.
“Transitioning to a low-carbon, climate-resilient development pathway will require significant private sector-led contribution, investment, and innovation,” said Kalim M. Shah, IFC’s Senior Country Manager for Nigeria. “The implementation of Lagos’ climate action plan as part of the overall 30-year masterplan will ensure that Lagos remains a livable and thriving city.”
The private sector’s pivotal role could help Lagos absorb—and provide jobs and opportunity for—millions more citizens in a sustainable way. The projects outlined below illustrate how IFC is supporting sustainable private sector-led growth in Lagos and contributing to the city’s green ambitions.
Adekunle Adekola purchased a fuel-efficient car with financing from Moove in Lagos, Nigeria. Photo: Courtesy of Moove.
Adekunle Adekola purchased a fuel-efficient car with financing from Moove in Lagos, Nigeria. Photo: Courtesy of Moove.
Sustainable Transport Options
While public transport is a major source of mobility in developed cities, ride hailing services can fill gaps in places where buses or subway lines are scarce.
In Lagos State, where there are 222 vehicles for every kilometer of road compared to a national average of 11, Nigerian company Moove is making financing available for ride hailing drivers to purchase or lease fuel efficient vehicles—and has plans to finance transition fuel powered cars in the city.
The company, which was founded in 2020 and also operates in Ghana, Kenya, Uganda, and South Africa, has already financed thousands of fuel efficient vehicles in Lagos for drivers who work for Uber.
One driver in Lagos benefitting from Moove’s model is Adekunle Adekola, who purchased a brand-new Suzuki S-presso thanks to Moove’s financing. The vehicle delivers fuel efficiency of 4.9 liters per 100 kilometers and lower CO2 emissions, less than the global average fuel efficiency of 6 liters per 100 kilometers.
“I’ve been driving for the past 30 years and compared to other cars I’ve driven, the fuel consumption of this new vehicle is very economical,” Adekunle said.
Getting new, fuel-efficient cars on the road is particularly important in Nigeria, where dilapidated, second-hand vehicles popularly known as Tokunbos still dominate the roads, often emitting dangerous fumes.
Lagos' five-year climate action plan prioritizes zero-carbon development goals in transportation, among other sectors. Photo: SmartEdge.
Lagos' five-year climate action plan prioritizes zero-carbon development goals in transportation, among other sectors. Photo: SmartEdge.
In 2021, IFC provided $20 million in financing to support Moove’s growth ambitions. The company aims to have at least 60 percent of the cars it finances be fuel-efficient, electric or hybrid. Nearly 10 million trips have been completed in Moove-financed vehicles to date.
“There’s a massive investment potential to introduce greener vehicles in Lagos,” said Ladi Delano, co-CEO of Moove. “The entire value chain has potential, from the vehicle itself, where most cars on Lagos roads can be fuel-efficient and electric vehicles, to the infrastructure for electric vehicles, including charging units.”
Lagos is also pursuing a public transport strategy to help cut congestion and emissions on its crowded roads.
In 2008, Lagos introduced Africa's first Bus Rapid Transit (BRT) corridor, which has since been expanded to three BRT corridors and standardized bus routes, and today serves more than 200,000 passengers daily with 300 buses. The project includes designated bus lanes that have dramatically reduced travel times.
Lagos is expanding its public transport through the Bus Rapid Transit system by increasing the number of buses on the road and better bus lane coverage. Photo: SmartEdge.
Lagos is expanding its public transport through the Bus Rapid Transit system by increasing the number of buses on the road and better bus lane coverage. Photo: SmartEdge.
Meanwhile, this year IFC provided a $50 million local-currency loan to help Lagos develop, finance, upgrade, and operate two bus corridors in Abule Egba-Command and Ile Iwe-Ile Epo, two of the most densely populated and congested parts of the city.
The upgrades, expected to be completed by early 2024, are aimed at serving 150,000 passengers per day.
“We have six rail lines and one monorail in the Lagos State strategic transport master plan, and are currently working on two rail lines. These are high-density corridors estimated to reduce road travel times for over a million passengers per day when completed,” said Abimbola Akinajo, Chief Executive Officer, Lagos Metropolitan Area Transport Authority (LAMATA).
“There’s a massive investment potential to introduce greener vehicles in Lagos.” —Ladi Delano, co-CEO, Moove
Powering Lagos’ Green Development
Lagos is growing rapidly, with new residential and industrial areas appearing as if overnight.
This growth, which is expected to accelerate, is badly straining the city’s energy supply, forcing millions to rely on fuel- or diesel-burning generators.
One solution already making an impact is renewable energy, specifically solar power. In fact, Nigeria aims to generate 30 percent of its power from renewable sources by 2030.
“The shift to affordable, reliable, and clean energy is already happening in Lagos, with this shift largely driven by private sector initiatives,” said Jasper von Hardenberg, Group Chief Executive Officer at Daystar Power Group. “Companies, businesses, and households are feeling the pressure of high energy prices and are choosing more affordable, cleaner alternatives.”
Daystar Power’s high-capacity solar panels installed for an industrial client in a suburb of Lagos. Photo: Courtesy of Daystar Power Group.
Daystar Power’s high-capacity solar panels installed for an industrial client in a suburb of Lagos. Photo: Courtesy of Daystar Power Group.
Daybreak Power, an IFC investee and a subsidiary of Daystar Power Group, offers hybrid solar power solutions for commercial and industrial uses in Nigeria. The company expanded its installed capacity from 8.1 MWp in January 2021 to 31 MWp in September 2022, and is on target to cross 42 MWp by December 2022.
The company serves 110 sites in Lagos, including the Seven-Up Bottling Company and the Nigerian Bottling Company, taking pressure off the grid and avoiding the use of fossil fuel burning generators.
However, as demand for solar products grows, so does the proliferation of poor-quality products.
To address this problem, a solar testing laboratory was recently opened by the Standards Organization of Nigeria (SON) at the SON Laboratory complex in Lagos. The laboratory was supported by the Africa Clean Energy program, and funded by the UK Foreign, Commonwealth & Development Office, in collaboration with IFC and other partners.
The laboratory is helping ensure only quality products reach consumers, supporting demand for—and confidence in—solar.
Foundations for Lagos' Green Future
Rack Centre's IFC EDGE green building certification makes it the first certified data centre in Europe, the Middle East and Africa.
In 2023, Lagos is expected to adopt Nigeria’s new National Building Code, which incorporates guidelines for resource and energy efficient green buildings.
As Lagos expands, green buildings will be pivotal in helping reduce strain on the city’s already overburdened power and water utilities. Green buildings also use more sustainable construction materials and, as icing on the cake, they ultimately save their tenants money on heating, cooling, and water use.
In Nigeria, IFC’s EDGE program is working with developers, the government, and banks to support the construction and certification of green buildings. In Lagos, Rack Centre became the first EDGE certified data center in Europe, the Middle East and Africa.
Data centers are a vital pillar of the digital economy, but they are notorious for consuming high amounts of energy. By implementing water efficient cooling systems and a low energy air circulation system, Rack Centre expects to reduce energy use by 35 percent and cut carbon emissions by 100 tons a year once the building is complete in late 2023.
Besides the Rack Centre, EDGE has also certified apartment blocks, offices, and student facilities in Lagos. In May of this year, the Evercare Hospital became the first hospital in Nigeria to receive EDGE certification.
“As urban population growth continues in Nigeria, Lagos cannot simply stop building new residential and commercial buildings,” said Ommid Saberi, IFC Industry Specialist and EDGE Buildings Program Co-Lead. “However, if these buildings are certified green, they will greatly reduce the impact of the built environment on the city’s resources and the planet.”
Published in November 2022