President of the African Development Bank (AfDB), Akinwunmi Adesina has stated that the lack of reliable power supply is affecting the growth of industries in Nigeria.
Adesina stated this on Tuesday while speaking at the 49th annual general meeting of the Manufacturers Association of Nigeria (MAN) in Abuja.
Quoting a report by the International Monetary Fund (IMF), Adesina stated that the country loses $29 billion annually, which is about 5.8 percent of its gross domestic product (GDP) due to a lack of reliable power supply.
He also added that Nigerians spend $14 billion yearly on generators and fuel.
“Today, no business can survive in Nigeria without generators. Consequently, the abnormal has become normal,” Adesina said.
“Traveling on a road one day in Lagos, I saw an advertisement on a billboard which caught my attention. It was advertising generators, with the bold statement “we are the nation’s number one reliable power supplier!”
Adesina said the manufacturing sector in Nigeria is faced with numerous challenges; chief among them is power supply.
“To be a manufacturer in Nigeria is not an easy business. You succeed not because of the ease of doing business, but by surmounting several constraints that limit industrial manufacturing,” he said.
“Today, the major challenge facing Nigeria’s manufacturing is the very high cost and unreliability of electricity supplies. Load shedding and the inconsistent availability of electrical power have resulted in high and uncompetitive manufacturing costs.”