ERRATIC POWER SUPPLY AND BUSINESSES

Unreliable electricity supply poses a significant obstacle to Nigeria's economic growth, as acknowledged by prominent business figures such as Arewa Cotton and Allied Products Limited's Managing Director and CEO, Anibe Achimugu, and Africa's leading businessman, Alhaji Aliko Dangote. Both Achimugu and Dangote have repeatedly highlighted how this issue disrupts production schedules, hinders businesses from meeting delivery deadlines, and discourages foreign investors from Nigeria.

The recurrent grid failures and resulting power shortages create a detrimental environment for industrial and commercial sectors, particularly small and medium enterprises, which often rely on diesel and petrol as alternative power sources. In many cases, the added variable costs of these alternative power sources are ultimately passed on to consumers, exacerbating the issue.

The consequences of this precarious power situation are dire, leading to numerous businesses either closing down or downsizing their workforce. This situation not only stifles economic development but also makes Nigeria one of the most challenging places to conduct business, further reducing its competitiveness. Despite previous reforms in the power sector that were intended to enhance electricity access, create jobs, and boost infrastructure, progress has been slow and elusive.

A recent World Bank report confirms that Nigeria's average annual per capita electricity consumption is a mere 147 kilowatt-hour (kWh), which is only a fifth of the consumption in low-middle-income countries and a twentieth of the global average. This stark contrast in electricity consumption underscores the urgent need to address the power challenges facing the nation.

The World Bank report also revealed that Nigerian businesses suffer an average of 239 hours of power outages each month, compounding the economic losses and payment apathy already associated with the unreliable power supply. This situation not only hampers business expansion and competitiveness but also exacerbates issues of poverty, health, safety, and environmental concerns.

As the challenges of poor electricity supply continue to dominate conversations in economic summits across Nigeria, it is imperative that these discussions shift from theory to action on the ground. Only by prioritizing the power sector can Nigeria hope to unlock its economic potential and ensure sustainable growth for its citizens.