Poor power supply: FG signs MOU for 1GW Solar plant

The effects of poor power supply on Nigeria’s economy have been devastating. The country has been plagued by frequent power outages and unreliable electricity for years, which has hindered progress in various sectors. One of the major impacts has been on businesses and industries. The lack of consistent power supply has resulted in increased production costs, as businesses are forced to rely on expensive alternative sources such as generators. This, in turn, reduces profit margins and makes Nigerian products more expensive, thus limiting their competitiveness in both domestic and international markets.

In 2022, for instance, manufacturers spent N144.5bn on alternative energy sources, up from N77.22bn in 2021, according to figures released by the Manufacturers Association of Nigeria in June. This, of course, affected their cost of operations negatively, as they explained that the high cost translated to about an 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year.

Nigeria generates less than 5,000 megawatts of electricity daily for a population of over 200 million people. On September 26, 2023, for instance, the country’s peak generation was 4,632.6MW, which is basically served to residents in cities, while those in villages hardly get supply.

Read Also : Nigeria’s trade surplus hits N3.5trn in 9 months – NBS

To cushion the effects of poor power supply, the Federal Government has signed an agreement for the establishment of a 1 Gigawatt (GW) Solar PV Manufacturing plant in the country as part of efforts to provide reliable energy to Nigerians. During the ongoing 28th Conference of Parties (COP28) in Dubai, United Arab Emirates, the Infrastructure Corporation (Infracorp) signed an agreement with Solarge BV of the Netherlands and the African Green Infrastructure Investment Bank.

Lazarus Angbaso, the Chief Executive Officer of Infracorp, said the objective of the project is to revolutionise Nigeria’s energy sector and elevate the economy to $1 trillion through sustainable and climate-resilient infrastructure. “The project focuses on local manufacturing, green manufacturing and renewable energy, equipment manufacturing, and climate-resilient infrastructure,” he said.

Minister of Power Adebayo Adelabu stated that the nation’s current power situation is dire, with numerous obstacles impeding generation, inadequate distribution capacity, and inadequate transmission infrastructure. He reminded the world that a nation must have a sufficient supply of energy in order to reach its full potential, but he also gave the international community the assurance that the administration of President Bola Tinubu is committed to keeping its word.

“We bear witness to the enormous stress on our national grid that continues to trigger power outages that adversely affect the daily lives of our citizens: homes, schools, hospitals, and businesses of diverse scales,” he said. Adelabu added that renewable energy is no longer just a future aspiration but a present necessity.


Covenant Umoru

Covenant is a multi- media Journalist with over 4 years experience. More »

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