Nigeria’s power outages are costing the economy $26 billion annually, according to Standard Bank’s ‘Africa Trade Barometer’ report.
Frequent grid failures disrupt production, water, and telecom services, forcing businesses to spend an additional $22 billion on off-grid fuel to stay operational.
Nigeria’s economy is facing severe losses due to power challenges, with Standard Bank estimating an annual $26 billion loss from frequent outages.
According to the bank’s ‘Africa Trade Barometer’ report, unreliable electricity presents a major barrier for businesses in Nigeria; thus, they must spend an additional $22 billion yearly on off-grid fuel to keep operations stable.
Furthermore, the report highlights that Nigerian companies are struggling with high costs as they manage frequent grid collapses.
Read Also: Report: Tensions Rise In Nigeria-US Relations Amid Binance Executive’s Legal Case
The national power grid often fails to meet demand, which is nearly four times its capacity.
As a result, productivity is impacted, with outages disrupting essential services such as manufacturing, water supply, and telecommunications.
Among the ten African countries surveyed, Nigeria’s power issues stand out as a top concern.
Standard Bank explains that blackouts lead to costly downtimes, which can damage the quality of goods that require specific conditions, and disrupt telecommunications infrastructure vital for business transactions.
Consequently, these challenges ultimately cut into sales and income, adding to the economic burden.
The report suggests that Nigeria adopt a diversified energy mix to reduce reliance on the national grid and calls for government intervention to stabilise electricity generation.
Additionally, the report notes a decline in business confidence in Nigeria, further impacted by the naira’s depreciation, underscoring the urgent need for reform in the electricity sector.
