Nigeria faces an annual economic loss of an estimated $26.2 billion, equivalent to 2% of the country’s Gross Domestic Product (GDP), due to the unreliable supply of electricity, according to Dr. George Nwangwu, the Director General of the Global Centre for Law, Business, and Economy.
This staggering figure was disclosed at the inaugural Africa Climate Forum 2023 held in Abuja, where Nwangwu emphasized the importance of addressing energy-related issues.
Nwangwu further stressed that mishandling the energy transition in Africa could have dire consequences, even posing an existential threat to the continent.
He pointed out that a lack of reliable power supply not only affects private citizens but also businesses, thereby contributing to substantial economic losses.
In Nigeria, which has a population of over 200 million, an alarming 92 million people still lack access to electricity, as reported by the Energy Progress Report 2022. The country’s power sector continues to grapple with challenges, and addressing these issues remains a critical priority for Nigeria’s sustainable progress.
The economic impact of the energy deficit underscores the urgent need for concerted efforts to improve the power supply in Nigeria and across the African continent as a whole. By doing so, countries can unlock significant economic potential and enhance the livelihoods of their citizens.
