Bismarck Rewane, an economic expert and Managing Director of Financial Derivatives Company Ltd, highlighted the urgent need for Nigeria to address its ongoing power supply problems, as persistent outages are a major risk to the country’s economic development. He made these remarks during an appearance on Channels Television’s ‘Business Morning’ on Tuesday. Rewane emphasized how fluctuations in electricity supply affect Nigeria’s Gross Domestic Product (GDP), particularly in crucial economic areas such as Lagos and Ogun states. He noted the associated opportunity and financial costs. Lagos and Ogun states are estimated to make up roughly 30% of Nigeria’s GDP. He stated that a one-month power outage would equate to about one-twelfth of a 30% impact, which is considerable. He noted that Nigeria’s power problems are complex and multifaceted, mentioning factors like cultural obstacles, tariff discrepancies, insufficient investment, and debt leniency in the industry. “It is impossible to advance the economy with the current state of power supply,” he added. Any power outage in Nigeria needs to be addressed—there’s no doubt about it. You can’t just cover it up. “It is essential that this is accomplished immediately,” he remarked. Discussing the state of the economy, the expert indicated that Nigeria’s GDP is around $2.45 billion, with a 3.13% increase observed in the first quarter of the year. He pointed out changes within the economic landscape, mentioning a decrease in the manufacturing sector’s contribution, while agriculture has gained prominence, and the service industry continues to be the main engine of economic activity. Regarding oil refining, Rewane noted that the global refining market is increasingly centralized, with refineries functioning on high volumes but operating with minimal profit margins.
