Achimugu and Dangote Warn of Nigeria's Power Crisis

Mr. Anibe Achimugu, Managing Director and Chief Executive Officer of Arewa Cotton and Allied Products Limited, stated that unreliable electricity supply poses a significant threat to industrial survival in Nigeria. This sentiment is echoed by Alhaji Aliko Dangote, who emphasizes that inconsistent power disrupts production schedules and deters investors.

The national grid's failures force businesses to rely on costly diesel and petrol for power, which increases production costs ultimately borne by consumers. This unreliable power supply has dire consequences, leading to business closures and layoffs.

The World Bank Enterprise Survey indicates that electricity supply is the primary constraint for businesses in Nigeria. Furthermore, Nigeria's annual per capita electricity consumption stands at 147 kilowatt hours (kWh), significantly lower than the averages for low middle-income countries and globally.

The promise of power sector reforms over the past decade has not materialized, leaving Nigeria with one of the harshest business environments due to unstable electricity.