The President of the African Development Bank Group (AfDB), Mr Akinwumi Adesina, says Nigeria is losing about 29 billion dollars annually due to a lack of reliable power supply.
Adesina said that it amounted to a 5.8 per cent loss in the nation’s Gross Domestic Product (GDP),
He made this known during his lecture on “Building a global Nigeria” to mark the 90th birthday anniversary of retired Gen. Yakubu Gowon in Abuja.
He said that the major challenge facing Nigeria’s manufacturing industries was the high cost and unreliability of electricity supply.
The AfDB boss said that load shedding and the inconsistent availability of electricity had resulted in high and uncompetitive manufacturing costs.
According to him, most Nigerian manufacturing companies are providing their energy with a high dependence on generators, diesel and heavy fuel oil.
“It has been estimated by the International Monetary Fund (IMF) that Nigeria loses about 29 billion dollars annually, that is 5.8 per cent of its GDP, due to a lack of reliable power supply.
“The report also indicates that Nigerians spend 14bn dollars yearly on generators and fuel. There is no other way to say it, lack of electricity is killing Nigerian industries,” he said.
He quoted the Manufacturers Association of Nigeria (MAN) as saying that industries spent N93.1bn on alternative energy in 2018. “Today, no business can survive in Nigeria without generators.
“Nigeria had gas and crude oil in abundance, which can be vital means of generating electricity, yet, 86 million people live daily without electricity. Today, Nigeria is the number one country in the world in terms of the total number of people without electricity,” he said.
Adesina said that it was a situation that called for the government’s attention so as to boost the country’s economy. He said that in looking at achieving a “global Nigeria”, the country must achieve universal access to electricity.
Highlighting AfDB‘s contributions, Adesina said that the bank had invested massively in the power sector to support the implementation of Nigeria’s Power Sector Recovery Programme by providing 200 million dollars for the Nigeria Electrification Project.
According to him, a major component of AfDB’s energy strategy is the launch of the Desert to Power initiative, a 20 billion-dollar initiative to provide electricity.
He said that the initiative would provide electricity for 250 million people across 11 countries of the Sahel, including Northern Nigeria.
