Economic expert and Managing Director of Financial Derivatives Company Ltd, Bismarck Rewane, has highlighted the urgent need for Nigeria to address its persistent power supply challenges, warning that ongoing outages present a serious risk to the country’s economic growth.
Join our WhatsApp community
Speaking on Tuesday during an appearance on Channels Television’s Business Morning, Rewane underscored the negative effects of unreliable electricity on Nigeria’s Gross Domestic Product (GDP), particularly in major economic centres such as Lagos and Ogun States.
“There is the opportunity cost, and there is a cost. The cost is that Lagos and Ogun states may constitute about 30% of Nigeria’s GDP. So, if you’re going to have one month of power outage, the impact is effectively one-twelfth of 30%—which is significant,” he said.
According to him, Nigeria’s power challenges are deeply rooted and multi-dimensional, citing issues such as cultural barriers, tariff imbalances, underinvestment, and debt forbearance within the sector.
“You cannot grow the economy with what we’ve seen today without a broad power solution. If there is a power outage in Nigeria, it must be resolved—no question. You can’t put a Band-Aid on it. It has to be done, and it has to be done now,” he added.
Speaking on economic performance, the expert explained that Nigeria’s GDP currently stands at approximately $2.45 billion, with a 3.13% growth recorded in the first quarter of the year.
Rewane also observed shifts within the economy, noting that manufacturing’s contribution has declined, while agriculture has grown in visibility, and the service sector remains the primary driver of economic activity.
Weighing in on oil refining, Rewane explained that the global refining industry is increasingly hub-centered, and that refineries operate on high volume but low margins.
Join our WhatsApp community
Join Our Social Media Channels:
