In a country as rich in natural resources as Nigeria, it is alarming to note that the lack of access to electricity seriously hinders the development of its economy. Akinwumi Adesina, President of the African Development Bank, recently highlighted this issue during his conference on “Building a Global Nigeria”. According to him, Nigeria loses about $29 billion per year, or 5.8% of its GDP, due to an inefficient energy supply.
The manufacturing sector, the backbone of any growing economy, is particularly affected by this scourge. Nigerian industrial companies are forced to resort to private generators due to power outages and the uncertain availability of electricity from the public grid. This costly reliance on alternative energy sources such as diesel and fuel oil translates into high production costs and a decrease in competitiveness in the international market.
The numbers are alarming: manufacturing companies spent N93.1 billion on alternative energy in 2018 alone. This is unsustainable, especially since Nigeria has vast reserves of gas and oil that could be harnessed to generate electricity. Despite this, 86 million people live without electricity every day in the country, making it the world’s largest number of people without access to electricity.
To address this challenge, it is imperative that the Nigerian government takes concrete steps to improve access to electricity. President Adesina emphasizes the critical importance of a national approach to boosting the economy and fostering sustainable growth. He highlights the strategic role of the African Development Bank which has invested heavily in Nigeria’s energy sector, supporting the Power Sector Recovery Program.
AfDB’s investments in major projects such as the Nigeria Electrification Project and the Nigeria Transmission Project are essential steps towards the goal of universal access to electricity. In addition, the $20 billion Desert to Power initiative aims to provide electricity to over 250 million people across 11 Sahel countries, including Nigeria. This ambitious project is expected to create the world’s largest solar zone and contribute to the region’s energy self-sufficiency.
In conclusion, the current energy crisis in Nigeria is a major obstacle to the country’s economic development. However, with a renewed commitment to energy transition and strategic investments in the power sector, Nigeria could overcome these challenges and pave the way for a more prosperous future for its citizens.