Mr. Akinwumi Adesina, President of the African Development Bank Group (AfDB), revealed that Nigeria is losing approximately $29 billion annually due to unreliable power supply, equating to a 5.8% loss in the nation’s Gross Domestic Product (GDP).
During a lecture titled “Building a Global Nigeria,” held in Abuja to celebrate the 90th birthday anniversary of retired Gen. Yakubu Gowon, Adesina identified the high cost and inconsistency of electricity as the major challenges facing Nigeria’s manufacturing sector. He emphasized that load shedding and irregular power availability have led to elevated and uncompetitive manufacturing costs.
Many Nigerian manufacturing companies resort to generating their own electricity, heavily relying on generators, diesel, and heavy fuel oil. Adesina cited an International Monetary Fund (IMF) estimate stating that Nigerians spend about $14 billion annually on generators and fuel. He pointed out that the lack of electricity is severely hindering the growth of Nigerian industries, referencing a report from the Manufacturers Association of Nigeria (MAN) that industries spent ₦93.1 billion on alternative energy in 2018.