By Ayomide Otitoju
More than 60% of manufacturing companies in Nigeria have been forced to disconnect from the national grid due to unreliable power supply, Minister of Power, Adebayo Adelabu, revealed during the launch of the National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP).
Adelabu explained that many manufacturers have resorted to self-generating power, driving up production costs and making Nigerian goods less competitive in the global market. The IRP, developed in collaboration with the UK Nigeria Infrastructure Advisory Facility (UKNIAF), is aimed at transforming Nigeria’s power sector and bringing manufacturers back to the national grid.
“The lack of reliable electricity is a major barrier to industrialization. Manufacturing processes cannot afford to be disrupted by power outages, so companies opt for expensive self-generation instead,” Adelabu stated.
To address these challenges, Adelabu emphasized the need for significant investments in the power sector, estimating that $32.8 billion is required by 2030 to ensure universal electricity access in Nigeria. Of this amount, $17 billion is expected to come from the public sector, with the remaining $15.8 billion to be contributed by the private sector.
