President of the African Development Bank (AfDB), Dr. Akinwumi Adesina has underscored the glaring contradiction in Nigeria’s energy sector. Despite its rich reserves of gas and crude oil, around 86 million Nigerians remain without access to electricity, making the country the global leader in energy poverty.
At the 90th birthday celebration of former Head of State General Yakubu Gowon, Adesina expressed concern over the detrimental effect of unreliable power on Nigeria’s economic growth. He stated, “The lack of electricity is crippling Nigerian industries. No business in Nigeria can thrive without relying on generators. As a result, what should be abnormal has unfortunately become the norm.”
The AfDB President pointed to estimates from the International Monetary Fund (IMF), which place Nigeria’s annual losses from its poor power supply at $29 billion, equivalent to 5.6% of its GDP. In addition, the country spends a staggering $14 billion annually on generators and fuel as businesses scramble to keep operations running.
In a bid to address this, Adesina revealed AfDB’s ongoing partnership with the World Bank through “Mission 300,” which aims to connect 300 million people across Africa, including Nigerians, to electricity by 2030. The AfDB has already invested over $200 million in Nigeria’s grid transmission projects and is actively supporting the power sector recovery program to stabilize the national grid and reduce frequent outages.
Adesina’s remarks bring into sharp focus the severe energy challenges facing Nigeria, even as it sits on an abundance of natural resources.
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