As the federal government of Nigeria ramps up plans to diversify Nigeria’s energy mix, with nuclear power, Business Hilights examines benefits; the proposed project would have on Nigeria’s socioeconomic wellbeing.
Recall the federal government recently signed an intergovernmental agreement with Russia, on the construction of a nuclear power plant and research centre in Nigeria.
The Nigerian Atomic Energy Commission (NAEC) signed on behalf of the Nigerian government; while Russia’s state owned nuclear energy Corporation, ROSATOM signed on behalf of the Russian government.
The proposed project analysts predict, will not only assist with the current energy crisis, but will also stimulate a great deal of investments in the country and local businesses.
The direct and indirect economic and socio-economic benefits of Nuclear Power Plant (NPP) construction are immense. There is a great deal of opportunity for direct localisation during the construction phase of an NPP.
This includes but not limited to engineering services and the manufacture of components including pumps, valves, piping, tubing, insulation, reactor pressure vessels, pressurizers, heat exchangers and moisture separators.
Construction work will also provide a substantial boost to suppliers of commodities such as concrete and steel.
This, will provide a major boost for local manufacturers and job creation – not to mention the business opportunities in unrelated industries as a result of the economic spinoffs, such as the needed external infrastructure in the region of the plant, accommodation for workers, hospitals, schools, agriculture as well as the retail sector – due to an influx of workers and higher salaries in the region.
For instance the construction of the Kudankulam NPP in India with the help of the Russian state owned nuclear corporation Rosatom has led to the creation of more than 10,000 jobs in the region, not to mention new jobs in equipment-manufacturing companies and other related industries.
Tax proceeds from the plant go to neighboring towns and villages, making it possible to implement social projects such as the construction of schools and sports facilities.
In the Czech Republic, two nuclear power plants annually allocate about USD 6 million for the development of the regional economy and infrastructure, including the food sector.
NPP construction spurs a huge chain reaction in the countries they are built, providing massive benefits (added value) to the economy. Investing in nuclear projects stimulates cash flows to the regional and national budget that often surpass direct investments by a significant margin. The actual amount of investment depends directly on technologies involved.
A recent analysis conducted by the Nuclear Energy Institute (NEI) found that nuclear plants create some of the largest economic benefits when compared to all other generating sources. This is primarily due to their sheer size and the number of workers needed to construct and operate the plants.
According to the NEI the operation of a nuclear plant requires the highest number of skilled workers when compared to any other technology and on average such jobs pay 36% more than the average salaries in the area where the plant is constructed.
In 2016 the Federal Government of Nigeria, reaffirmed its plans to introduce nuclear power to diversify the country’s energy mix and help meet the energy needs of the country.
Globally, nuclear power is considered a viable base load alternative, producing power 24/7 with very few maintenance shutdowns, which makes it the ideal source for powering industry and growing an economy.
Nuclear power is also environmentally friendly, emitting far less greenhouse gases during electricity generation than coal or other fossil fuel power plants.
