Rewane: Nigeria’s GDP Will Hit $357bn if Power Supply Moves from 4,500MW to 8,000MW

Dike Onwuamaeze

The Managing Director of Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, has pointed out that Nigeria’s gross domestic product (GDP) could rise to $357 billion if electricity supply would increase from the present 4.500MW to 8,000MW.  

Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 even though the sector has installed capacity to generate 13,000 MW.

He pointed these out in his presentation on September 3, 2025, at the Lagos Business School (LBS) Executive Breakfast Session titled ‘Nigeria Bailout or Lights Out: The Power Sector in a Free Fall’, where he stated categorically that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.
He said “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.

“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And due to multiplier effects, GDP could rise to $357 billion.”  
The FDC’s chief executive remarked that “in the last 30 years, Nigeria has invested no less than $30 billon to solve an intractable power supply problem.
“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.

“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.
“The way out is a bailout, or it is lights out for Nigeria,” he said.

He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.

Rewane defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse,” noting that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.

He said, “The president has promised to consider a financial bailout for the Gencos and Discos

“With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”

Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.

 According to him, “the average output from the grid in the last 20 years has been stuck at 5,000MW making Nigeria rank in the lowest percentile of electricity per capita in the world.”

The economist said that the cost of the power sector’s bailouts include strains on government finances, crowding out of spending on health and education as well as its attendant moral hazard risk.

He added that the cost of bailouts in the sector has ranged from N213 billion, N701 billion, N600 billion in 2015, 2017 and 2020 respectively, to about N4 trillion in 2025.

Rewane, however, pointed out that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.

The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.

Rewane also said that “firms can sell off non-core power assets (like diesel generator sets) to unlock capital; revenues redirected into core operations and expansion” and could operate on “more predictable costs and financial planning.”

He also said that the benefits of power sector bailout for the telecom firms in particular would include “lower tower downtime, cheaper running costs, stronger network outreach and multiplier effect of better network coverage across the economy” that will aid GDP’s growth.”

For now, the Nigeria’s power sector has been beset with “aging infrastructure, frequent blackouts, huge debts across the value chain, low tariffs and subsidy dependence, metering gaps and electricity theft,” Rewane said.

The post Rewane: Nigeria’s GDP Will Hit $357bn if Power Supply Moves from 4,500MW to 8,000MW appeared first on THISDAYLIVE.

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    Tambuwal: Tinubu, APC Destabilising Opposition Parties, Warns Against One-party State

    *Vows coalition will unseat president democratically in 2027 

    *Insists he never betrayed Wike 

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    Former Sokoto State Governor and serving Senator representing Sokoto South Senatorial District, Aminu Waziri Tambuwal, has accused President Ahmed Tinubu and the All Progressives Congress (APC) of working to destabilise opposition parties in Nigeria, warning that the country was dangerously drifting towards authoritarianism.

    Equally, the invitation of former Governor of Kaduna State, Mallam Nasir El- Rufai and some leaders of the African Democratic Congress (ADC) by the Nigeria Police Force, over an allegation of disturbance of public peace in Kaduna, has elicited outrage and condemnation with many lamenting that it was a precursor to witch hunt and precursor of what to expect from the ruling party prior to 2027 elections. Former Vice President Atiku Abubakar condemned the developments in Kaduna, alleging that same was happening in Katsina, and other parts of the country, which he described as a dangerous assault on civic freedoms under Tinubu’s administration.

    Also reacting to the development, the ADC and the League of Northern Democrats expressed concern over what they termed as the increasing use of law enforcement agencies to harass and intimidate opposition leaders, while criminal violence continues to devastate communities across the country.
    The Kaduna State Police Command had invited El-Rufai and seven ADC leaders for questioning over alleged conspiracy, incitement, and other offences.

    However, speaking yesterday on a national television, Tambuwal said the political environment under Tinubu has taken a worrying turn, with clear signs that the ruling APC was bent on weakening opposition structures.
    “You don’t need to be told, no matter the amount of denial by whoever, including President Bola Tinubu, that they are not involved in destabilisation efforts of opposition parties. It’s not correct. I am saying that they are involved. I am not suspecting; I am saying it.

    “The signs are very clear. They are very ominous. The people in charge of government today in Nigeria are interested in a one-party state. It is clear, and it is not in the interest of democracy or in the interest of Nigeria. That is the path they are pursuing,” for former House of Representatives Speaker alleged.
    Tambuwal, who campaigned vigorously against Tinubu in the 2023 general elections, said he was not surprised by the current situation.

    “I cannot say I am disappointed because I campaigned against him. I told Nigerians to be wary of voting for Bola Tinubu and the APC. I went throughout the nooks and crannies of this country warning Nigerians, and today what we are seeing is what I expected,” he said.

    On the recent police invitation to some opposition leaders after political clashes in Kaduna, Tambuwal defended the constitutional right of Nigerians to assemble freely.
    “Let me start by referring to the constitution of the Federal Republic of Nigeria, particularly Section 39(1) and Section 40. These provisions clearly provide for freedom of expression and freedom of assembly. In the instant case, we were not at a rally. We were there on a commiseration visit to our colleagues in Kaduna who were attacked by thugs. We did exactly that and left. There was no breach of the peace,” he explained.

    While stressing that police invitations should not be ignored, he urged caution.
    “I am a lawyer of 32 years standing, a Life Bencher, a parliamentarian of 12 years, and now a Senator. I am a law-abiding citizen. Whoever is invited by a constitutional authority should appear.

    “I would advise my friends to attend to the invitation of the police. But the police must be circumspect. They should not give the impression that they are suppressing opposition voices,” Tambuwal said.
    Tambuwal also addressed his ongoing investigation by the Economic and Financial Crimes Commission (EFCC) over alleged cash withdrawals of N189 billion.

    “That is not correct. N189 billion in seven years would mean our government withdrew N2.25 billion every month in cash. Where are the resources? How much was Sokoto’s allocation? Up till when I left office, we never owed salaries, pensions, or gratuities. This matter is still under investigation, and I will honour the EFCC invitation. But to me, it is politically induced,” he said.
    Turning to his past political relationships, the Senator rejected claims that he had betrayed former allies such as Nyesom Wike.

    “I have never betrayed anybody. Betrayal is when you have an understanding with someone and you go against that understanding. In 2022, I was also running for President. My friend Wike was in the race too. When I stepped down for Atiku Abubakar, it was not betrayal. It was about principle and about the country. Personally, Wike is my friend. But when it comes to leadership, I will support Atiku over Wike any day,” he insisted.

    Tambuwal also addressed his past alliance with Tinubu that helped him become Speaker of the House of Representatives in 2011.
    “We engaged Bola Tinubu several times. Initially, he directed the ACN caucus to support Mulikat Akande-Adeola. But when they ran the numbers, he saw I was going to win. He then shifted support to me. It was a matter of political calculation. But that does not bind me forever. Today, I will not support Tinubu,” he said.

    The former governor also renewed his call for the creation of state police, saying the current centralised system has failed to guarantee security.

    “It is very frustrating when a governor cannot give instructions to either the Commissioner of Police or the Brigade Commander until he clears from Abuja. That is the reality. During my time in Sokoto, we provided over 600 vehicles to security agencies, monthly allowances, and operational support. Yet, we could not direct them to act against bandits without clearance. That is why state police is necessary,” Tambuwal explained.

    The former governor confirmed his commitment to a broad opposition coalition aimed at unseating Tinubu in 2027.
    “I am fully involved in a lawful and democratic process that will, by the grace of God, send this government out of office. With the help of Nigerians, we will achieve that. Tinubu can be defeated. This idea of his invincibility is rubbish,” he declared.

    Asked whether he would join the APC if invited, Tambuwal was emphatic: “I will not join the APC. I do not believe in the way the country is being run by the APC currently.”

    Meanwhile, the invitation of Mallam Nasir El- Rufai for alleged disturbance of public peace by the Police has elicited outrage and condemnation, with many lamenting that it was a precursor to witch hunt and a precursor of what to expect from the ruling party prior to 2027 elections.

    Atiku, in a statement yesterday, faulted the police invitation to el-Rufai, and leaders of the ADC, in the State.

    He also cited the attack on former Attorney General, Abubakar Malami, and the violent disruption of a meeting of the Katsina Elders Forum on security reforms as evidence of what he called a growing trend towards authoritarianism.

     “These incidents are not isolated. They signify a coordinated assault on dissenting voices, civic freedoms, and the essence of pluralistic democracy,” Atiku said.

     The former Vice President warned that criminalising opposition and undermining peaceful civic engagement could push Nigeria dangerously close to authoritarian rule.

     He urged Nigerians to recognise the urgency of the situation, stressing that the defence of democracy must be a collective responsibility.

     “Nigeria belongs to all of us, not just the ruling party or any single individual. We must not allow the principles of liberty, justice, and the rule of law to be undermined by partisan desperation,” he said.

     Similarly, the ADC condemned as politically motivated, police summons issued to El-Rufai and some members of his party, as well as the shocking attack on Malami’s convoy in Kebbi State, which left many party members injured and terrified.

     The Convener of the League of Northern Democrats, Dr. Umar Ardo said in the past one week, Nigerians have witnessed a disturbing pattern of violence and intimidation orchestrated against opposition figures.

    Also, in a statement signed by Mallam Bolaji Abdullahi, the National Publicity Secretary of the ADC, the party described these developments as an assault not just on individual politicians, but on Nigeria’s democracy itself.

     The coalition warned that the Nigeria Police Force has seemingly become a willing tool of political suppression for the federal government rather than a national security department that is truly focused on rooting out bandits and other criminals across the country.

     According to Abdullahi, ”At a time when terrorists and criminal gangs freely operate in large parts of the North, the Nigerian Police appears more interested in silencing opposition leaders than protecting citizens. After the recent attack in Kaduna, where the former Kaduna State Governor, Mallam Nasir El-Rufai and other ADC leaders were attacked; in Kebbi, the convoy of former Minister for Justice and Attorney General of the Federation, Abubakar Malami (SAN) was violently attacked in broad daylight around the GRA area of Birnin Kebbi—barely meters from a police outpost. Despite the seriousness of the attack, no arrests have been made, and the perpetrators remain at large.

    “This growing trend is disturbing — and all Nigerians should take note. In Kaduna, the police reportedly looked away as thugs—armed with stones and cutlasses—attacked a peaceful ADC gathering. Instead of arresting those responsible, the police are now targeting the victims with summons.”

     The ADC further said that ”To make matters worse, police authorities in Kaduna sealed off the ADC party offices ahead of a planned meeting of zonal leaders—a deliberate attempt to stifle our constitutional right to assemble and organise.”

     Accordingly, the ADC spokesman added, ”We demand that the police authorities unseal the ADC office in Kaduna State, and stop the illegal obstruction of lawful political activity. No democracy can thrive where opposition party structures are routinely shut down under vague pretexts. Our party will stand with our leaders and members. We will not be intimidated, he said.

    The post Tambuwal: Tinubu, APC Destabilising Opposition Parties, Warns Against One-party State appeared first on THISDAYLIVE.

    ​  

    *Vows coalition will unseat president democratically in 2027  *Insists he never betrayed Wike  *Outrage, condemnations trail police invitation of El-Rufai, others for alleged disturbance of public peace, attack on Malami,
    The post Tambuwal: Tinubu, APC Destabilising Opposition Parties, Warns Against One-party State appeared first on THISDAYLIVE.

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