Minister of Power, Adebayo Adelabu has disclosed that more than 60% of Nigeria’s manufacturing companies have been forced to disconnect from the national power grid due to unreliable electricity supply.
At the launch of the National Integrated Electricity Policy and the public presentation of the Integrated Resource Plan, IRP, Adelabu explained that these companies have turned to self-generation as an alternative to the unstable grid power.
However, this shift has significantly increased production costs and diminished the competitiveness of Nigerian-made goods on the global market.
The IRP report, which was developed in collaboration with the United Kingdom Nigeria Infrastructure Advisory Facility, outlines strategies to address these challenges.
Adelabu emphasized that the new policy is key to transforming Nigeria’s power industry and facilitating the return of manufacturers to the national grid.
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“The fact that over 60% of our manufacturing industry is currently off grid is a serious concern. These companies are forced into self-generation, not because they are in rural or semi-urban areas but because the grid supply is simply not reliable enough,” said Adelabu.
He noted that many manufacturing processes are too sensitive to risk power outages, and as a result, industries prefer to bear the high costs of self-generation rather than rely on the erratic grid.
The Minister highlighted that the reliability of the national grid is essential to reducing production costs, curbing inflation, and enhancing the competitiveness of locally produced goods.
“Only by ensuring a stable grid can we reduce production costs, foster industrial growth, and make Nigerian products more competitive against imports,” he added.
Adelabu also discussed the significant investment needed to achieve universal electricity access by 2030, estimating a total of $32.8 billion. Of this, $17 billion is expected to come from the public sector, with the remaining $15.8 billion anticipated from private sector contributions.
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