Revealed! Nigeria spends N26bn over power shortages yearly

• To mitigate the interaction of powerfulness disruptions, businesses put much than $22 cardinal annually successful off-grid fuel
• It concluded that the availability of vigor is 1 of the main challenges facing concern operations successful Nigeria and passim Africa
• The existent nationalist grid outage volition beryllium investigated, the House of Representatives declared

Legit.ng writer Zainab Iwayemi has implicit 3-year-experience covering the Economy, Technology, and Capital Market.

Power outages outgo Nigeria an estimated $26 cardinal annually.

This is according to the astir caller Africa Trade Barometer survey, which stated that off-grid generator purchases are not included successful the price.

Companies walk implicit $22 cardinal a twelvemonth connected off-grid substance to lessen the effects of powerfulness outages. Photo Credit: Contributor
Source: UGC

The study by Standard Bank successful a Channels TV report:

“Economic losses arising from Nigeria’s energy shortages are estimated to beryllium USD 26 cardinal annually, without accounting for spending connected substance for off-grid generators, which is estimated to beryllium a further USD 22 billion."

According to the report, companies walk implicit $22 cardinal a twelvemonth connected off-grid substance to lessen the effects of powerfulness outages. This raises operating expenses adjacent further.

The study reads,

“In Nigeria, surveyed businesses indispensable contend with a nationalist grid that often collapses arsenic it fails to conscionable a regular highest request which is astir 4 times its procreation capacity,”

It recovered that 1 of the biggest obstacles to institution operations successful Nigeria and passim Africa is the availability of energy.

“Across the 10 African markets, powerfulness proviso infrastructure remains the astir terrible obstacle to surveyed businesses’ operations,” the Standard Bank read.“It is reported arsenic 1 of the astir poorly perceived infrastructural attributes arsenic good arsenic the 1 presenting the astir terrible obstacle to concern operations,” the study added.“Blackouts cause a downtime of production, hazard the prime of goods that necessitate controlled environments, interaction h2o supply, and impact telecommunications infrastructure which businesses whitethorn trust connected for payments. The effect is reduced income and income.”

The study comes amid the incessant nationalist grid illness successful caller weeks. Just this month, determination was a blackout successful galore parts of the state aft the grid collapsed thrice successful 7 days.

According to the National Electricity Regulatory Commission (NERC), the improvement was owed to an detonation of a transformer successful 1 of the transmission stations.

The House of Representatives announced that it would look into the ongoing nationalist grid failure.

Meanwhile, a study by the Nigerian Electricity Regulatory Commission (NERC) has shown that the 12 energy organisation firms (DisCos) were incapable to cod implicit N60 cardinal successful powerfulness bills successful December 2024.

This portion of accusation was included successful the information expanse that the committee published for the period that was being examined.

This important income shortage raises questions regarding the industry's stableness and capableness to proviso customers with dependable electricity.

NERC issues informing to Nigerians utilizing prepaid meters

Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has again reminded Nigerians to update their meters earlier the deadline of November 2024.

The Commission released the connection done its authoritative X relationship connected Tuesday, August 8, 2024, urging energy consumers to instrumentality enactment earlier the deadline.

The committee warned that aft the deadline, consumers who neglect to upgrade whitethorn not beryllium capable to recharge their electricity.

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Source: Legit.ng