Urging FG To Hasten Nigeria’s Industrialization Bid By Ending Power Crisis -By Isaac Asabor

It is not an exaggeration to opine that industrialization is the process by which an economy moves from primarily agrarian production to mass-produced and technologically advanced goods and services. This phase is characterized by exponential increase in production, shifts from rural to urban labor, and increased standards of living. In fact, industrialization is deemed to be the most significant economic development in human history based on typical measurements such as income per capita or labor productivity.

Given the centrality of industrialization to an economy, there is no gainsaying the fact that it has been a contributory factor to the economic development of the world, even as it has improved productivity and has allowed for mass production that have no doubt  increased standards of living.

To buttress the foregoing points, it is expedient to appreciate the fact that human productivity and living standards remained relatively unchanged from the beginning of the agricultural age around 8000 to 5000 B.C. until the first industrialization in Great Britain started in 1760, and since then humanity has seen more goods produced in less time, increased time for recreation and leisure, and an increase in real incomes.

Against the backdrop of the centrality of industrialization, the reason why President Bola Ahmed Tinubu have been seen for the umpteenth time making promises that revolve around somewhat industrial revolution can easily be understood.  For instance, in December 2022 as the presidential candidate of the All Progressives Congress, APC, he promised widespread industrialization across the country if elected president in 2023 elections.  The president made the promise then at the party’s presidential rally in Kaduna, where he addressed a mammoth crowd who welcomed him to the ancient city and former capital of the Northern region.

In fact, while addressing party supporters at Ahmadu Bello Stadium, Kaduna, at the time, the then presidential aspirant thanked them for the warm reception they accorded him during his previous visits to the Arewa Joint Committee at the Arewa House and the Kaduna Economic and Investment Summit.

In a similar vein, as the presidential Candidate of the All Progressives Congress (APC) ahead of the February 25, 2023 election, hepledged in January 2023 to embark on massive industrialization of Nigeria if voted into power, even as he assured that the Ajaokuta Steel Company would be resuscitated as part of his industrial revolution.

Tinubu said that his administration would vigorously pursue Industrialization to the level that the nation would attain fabrication and engine Building Industrial platforms in the revolution.

He also pledged to rekindle the hope of the people by ensuring completion of the River Niger dredging and transformation of Agriculture to the level of sustainable means of livelihood and prosperity and boost the economy.

In a similar vein, Tinubu who was in Owerri, the capital city of Imo State, earlier in the year at Hope Uzodinma‘s second term inauguration as governor of the State reiterated his resolve and commitment to drive his administration with industrialization. He explained that his administration would create an enabling environment for industrialization and investment, in line with his vision of creating a country that is economically stable and prosperous.

At this juncture, it is expedient to opine that at no point in recent history have calls for Nigeria to industrialize been stronger than they have been lately. Across the country, industrialization is arguably the most talked about subject among policymakers. So why has action on the ground failed to move the needle on this important development marker?

In fact, as we move further into Tinubu-led administration, the importance of electrical energy in driving industrial progress cannot be overstated as it is expedient the administration seize the opportunities that are inherent in Nigeria’s sector to power factories as well as enabling automation and electrical energy that have no doubt become the lifeline of modern industries.

Given the foregoing backdrop, the question to ask at this juncture is, “Does Nigeria has a reliable and steady electricity supply to engender industrialization?” The answer to the foregoing question is emphatic No as the electrification rate in Nigeria is far below average.

The foregoing fact cannot be farfetched as businesses across several regions in Nigeria have in the recent weeks been expressing concerns following the epileptic supply of power, which has forced many to rely on alternative sources of energy. Even at that, they have been lamenting that the options are expensive, unsustainable, and constitute a threat to their continued survival.

At this juncture it will be germane to recall that Nigeria witnessed another round of blackouts across the country on Sunday, the 4th of February 2024, as the national power grid collapsed again, making it the first grid collapse this year.

Without resorting to over flogging the issue of power crisis that has over the years been the lot of Nigeria, it is expedient to urge the federal government to hasten Nigeria’s industrialization bid by ending power crisis

In fact, the reason for the retrogressive situation cannot be farfetched as daily supply of electricity in most parts of the country falls below expectation as power outages been recorded in most areas more often than not stretch beyond weeks, and even months in some areas, compelling households and businesses to rely on generators for power generations, which increases the cost of electricity and hurts competitiveness.

As gathered from a paper delivered by Amit Jain, a Singaporean Economist, at an event in Lagos some months ago, and incidentally attended by yours sincerely, a deep insight was thrown to the challenges that have over the years characterized Nigeria’s power sector, and the extent to which the situation has dragged Nigeria to.

According to Jain, “Creaky power infrastructure is a severe handicap on the economic performance of Nigeria. Unreliable power supply costs Nigeria at least US$28 billion (5 percent of GDP) per annum in lost economic productivity. Over the past few years, several manufacturing firms have shut down their operations in Nigeria, including well-known names like Exide Batteries, Oshogbo Rolling Mills, Nigeria Sugar Company, Nigeria Paper Mills, and the Nigerian Newsprint Manufacturing Company. Although the closure of these firms may have been caused by other reasons, insufficient power supply certainly played a big role in sealing their fate.

Buttressing Jain’s point of view in this context, it is expedient to recall that the federal government, few days ago, admitted that despite all its efforts, including sinking over N5 trillion into electricity subsidies in the last few years that over 100 million Nigerians still do not have access to reliable power supply.

Speaking on the last day of the Nigeria International Energy Summit (NIES) recently held in Abuja, the Special Adviser to President Bola Tinubu on Energy, Olu Verhejen, said that Nigeria’s macroeconomic difficulties and unreliable power supply have severely impacted the productivity of the commercial and industrial sectors.

“Despite all the interventions and subsidies, over 100 million Nigerians still do not have access to consistent and affordable electricity. This lack of access directly impacts their ability to achieve meaningful income growth as a lack of reliable electricity limits productivity and restricts economic expansion.

“Between the numbers of people living in poverty and those without access to electricity in Nigeria, is not accidental. Clearly the link between electricity consumption and economic development is well established across different countries in different income strata,” she argued.