AfDB: Nigeria Loses $29bn Yearly From Epileptic Power Supply

The President of African Development Bank (AfDB), Dr Akinwunmi Adesina, has revealed that Nigeria is losing an average of $29bn annually due to power failure.

According to the AfDB president, the emissions from these energy sources makes them brown industries and not green industries.

He said: ‘it has been estimated by the International Monetary Fund (IMF) that Nigeria loses 29 billion dollars annually due to lack of and unreliable power supply or 5.8 per cent of its GDP. ”

”Also, that Nigerians spend 14 billion dollars per year on generators and fuel.

The AfDB President, said this while presenting a lecture at the Business Day Chief Executive Officers (CEO) Forum in Lagos.

The lecture titled: “The Day the Lion Roared! Making Nigeria a Global Industrial and Economic Giant”.

”Today, capacity utilisation of factories hovers around 40 per cent compared to desired 70 per cent.

”The reality is that firms are moving to other neighboring countries, where there is greater macroeconomic stability, enabling environment, with better ease of doing business.

”To be a manufacturer in Nigeria is not an easy venture. You succeed not because of ease of doing business, but by surmounting several constraints that limit industrial manufacturing.

”The major challenge facing the industry in Nigeria is the high cost and unreliability of supply of electricity,”he said.

According to him, the load shedding and unreliable power have made the cost of manufacturing extremely high and uncompetitive.

He said most manufacturing companies do self-provision on energy, with dependence on generators, diesel and heavy fuel oil.

” The Manufacturers Association of Nigeria, said industries spend N93.1 billion on alternative energy in 2018. No business can survive in Nigeria without generators

”Unless Nigeria decisively tackles its energy deficiency and reliability, its industries will remain uncompetitive,” he said.