Dike Onwuamaeze
The Nigerian Electricity Regulatory Commission (NERC) has declared that powering the Nigerian industrial sector with adequate electricity could be realised with deliberate policy measures that would encourage investors to make long term capital investments in country’s power sector.
The Chairman and Chief Executive Officer of NERC, Mr. Sanusi Garba, stated this during the maiden edition of the Manufacturers Association of Nigeria’s (MAN) energy summit with the theme, “Power Supply Adequacy for Industrial Growth in Nigeria.”
Garba also said in his presentation titled, “Opportunities and Challenges of the New Electricity Act for Reliable Power Supply to Industrial Sector,” that attaining adequate power supply to the industrial sector could only be sustainable if right pricing of electricity is embraced and implemented.
He explained that the Electricity Act 2023 has provided the foundation for improving the Nigerian power sector but its implementation without addressing fundamentals challenges would not guarantee desired improvement.
According to him, the outcome of the Electricity Act 2023 would depend on, “how we implement it, which could either nurture or puncture it depending on policy choices as well as the dispositions of the state governments.
“Nigerian power sector currently struggles to meet customer’s expectations due to myriad of challenges. Investments are, therefore, required but capital and investments follow the path to recovery.
“However, access to capital requires bankability of the sector since a sector that does not guarantee recovery cannot attract investments. So, litigation against right pricing will only worsen the quality of (electricity) supply.”
Speaking during the summit, the Minister of Power, Mr. Adebayo Adelabu, said that the federal government is working tirelessly to provide sustainable solutions that would address the long standing energy challenges that have hampered the country’s industrial growth.
Adelabu said: “As many of you in the manufacturing sector are aware, Nigeria’s industrial growth potential has been hampered by decades of insufficient and unreliable electricity.
“This has increased operational cost, forced manufacturers to rely on alternative and often expensive sources of energy that reduced our industrial output’s competitiveness and deferred much-needed foreign direct investments in key industries.”
The minister, however, added that he is standing before the manufacturers, “with a message of hope and renewed commitment from government of Nigeria.
“We recognise the importance of addressing this long-standing energy challenges and are working tirelessly to deliver sustainable solutions that will enhance industrial productivity and foster economic growth.”
He said that power supply adequacy is not just about providing electricity but also about enabling industrialisation and driving economic growth.
He also enthused that the road ahead is clear. “We must ensure that Nigeria’s industries have the power they need to grow, innovate and compete.”
The President of MAN, Mr. Francis Meshioye, in his welcome address said that the summit is meant to achieve innovative solutions that would address the pressing issue of energy insecurity, which has long hindered the growth and competitiveness of our manufacturing sector.
Meshioye said: “As we convene here today, we recognise that energy security is not only a business imperative but also a national priority.
“Our manufacturing sector should be supported to accounts for a significant share of Nigeria’s GDP, and its growth is critical to our economic development.
“However, the challenges we face are clear: unreliable power supply, high energy costs, and environmental concerns. But we also see opportunities for innovation, job creation, and sustainable growth.”
Speaking during the summit, the Director General of MAN, Mr. Segun Ajayi-Kadir, noted that Nigerian manufacturers suffer greatly from power inadequacy and high cost of supply.
Ajayi-Kadir said that the summit would explore possible solutions to challenges militating against power supply adequacy and access to funding, which have in no small measure hindered manufacturing growth and competitiveness in Nigeria.
He said: “The urgent need to address these challenges and find lasting solution is the reason for our gathering this morning. I am happy to note that our assembling here today is a testimony of our recognition of the imperative of a far-sighted and collaborative approach.
“There is need for collaborative action to encourage stakeholders to work together to address infrastructure challenges. This is also an opportunity to explore innovative financing models which is one of the key takeaways for today and the reason for this August gathering this morning.”
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