African Development Bank Group President Akinwumi Adesina said a major challenge facing Nigeria’s manufacturing industry was the high cost and unreliability of electricity supply.
The AfDB chief said load shedding and inconsistent power supply had made production costs high and uncompetitive.
He said most manufacturing industries in Nigeria rely heavily on generators, diesel and heavy oil to provide their own energy.
“The IMF estimates that Nigeria loses approximately $29 billion annually, or 5.8% of GDP, due to lack of reliable electricity supply.
“The report also shows that Nigerians spend $14 billion annually on generators and fuel.
“All I can say is that power shortages are crippling industries in Nigeria,” he said.
He quoted the Manufacturers Association of Nigeria as saying that in 2018, industry spent NOK 93.1 billion on alternative energy.
“Today, no business in Nigeria can survive without a generator.
“Nigeria has abundant gas and crude oil that can be important sources of electricity generation, yet 86 million people live every day without electricity.
“Today, Nigeria is the number one country in the world in terms of total number of people without electricity,” he said.
Mr. Adesina said the situation warranted the attention of the government to revitalize the country’s economy.
He said the country needed to achieve universal access to electricity with an eye towards becoming a “global Nigeria”.
Highlighting AfDB’s contribution, Mr. Adesina said the bank has made huge investments in the power sector to support the implementation of Nigeria’s power sector recovery program by providing $200 million to the Nigeria Electrification Project. .
Reflecting on Nigeria’s 64th post-independence journey, the AfDB President said that Nigeria, the largest black nation on earth, must carry the hopes and aspirations of black people around the world who aspire to be at the vanguard of the world. .
He said: “Indeed, 64 years after independence, Nigeria should not be a developing country but a developed country.
“As the President of the African Development Bank, when I travel around Africa, one of the topics that comes up a lot is when will Nigeria develop?
“I have heard some leaders say that the rise of Africa depends on the rise of Nigeria,” he said.
He cited the example of Saudi Arabia, which set the pace of development in the Gulf region and led the development of the United Arab Emirates, Qatar, and Kuwait, which became global powers.
He said Nigeria needed to develop faster for the development of Africa, adding that Nigeria could not remain a disappointment to the African continent as history beckoned the country.
