Nigeria’s Epileptic Power Supply Costs The Country N10 Trillion Each Year, According To The World Bank

Despite the Federal Government’s efforts to enhance the country’s power supply, a recent World Bank assessment found that Nigeria’s economy still loses between N7 trillion and N10 trillion each year due to erratic power supply. According to the report, the overall figure amounts to 5-7 percent of the country’s GDP.

The World Bank released the study on June 16 as part of the Power Sector Recovery Program to highlight the new Nigeria Development Update (NDU).

The World Bank noted in a report titled “Resilience through Reforms” that enterprises and wealthy households rely heavily on generators due to inconsistent and insufficient electricity supply.

According to the report, Nigeria’s approximately 22 million gasoline generators power about 26% of all households and 30% of Micro, Small and Medium Enterprises (MSMEs), with a net capacity eight times that of the national grid. According to the report, these problems are caused by inadequate infrastructure, emphasizing the urgent need to enhance and expand the network in order to improve supply quality.

It also pinpoints systemic operational inefficiencies as the source of enormous financial and economic losses. As a result, the body emphasized the importance of a holistic approach that incorporates comprehensive steps to address Nigeria’s power difficulties in a long-term manner.

“Addressing power sector issues provides Nigeria with an opportunity to address long-standing challenges and boost the economy,” it concluded.

According to the research, the FG must handle the country’s economic issues by paying attention to the power industry.

“To address the economic challenges that have arisen as a result of the oil price shock and COVID-19, the FG launched a N23 trillion ($5.9 billion) Nigerian Economic Sustainability Plan in July 2020,” according to the study (NESP). The NESP lays out a comprehensive set of policies and initiatives aimed at boosting economic activity and job creation through investments in agriculture, infrastructure, renewable energy, and housing.

“However, any economic recovery plan will be severely hampered by limited electricity access, insufficient power supply, and a financially unviable power sector.”

The World Bank, on the other hand, stated that enhancing operational efficiency and infrastructure are critical for a clean energy transition. According to the assessment, the government will need to connect 500,000 to 800,000 households every year to attain universal access to electricity by 2030.

“To provide timely quality services to unserved and underserved households and businesses, both grid-extension and off-grid solutions will be required, especially as the country recovers from the pandemic’s impact.”