Energy crisis biggest obstacle to Nigeria’s industrialisation...

The Emir of Kano, Muhammadu Sanusi II, has warned that Nigeria’s persistent electricity crisis remains the country’s biggest barrier to industrialisation, economic growth and poverty reduction, stressing that unreliable power continues to undermine productivity, raise business costs and discourage investment despite the nation’s vast economic potential.

Speaking at the birthday symposium of former Minister of Power and Chairman of Geometric Power Group, Prof. Barth Nnaji, in Enugu, Sanusi said Nigeria requires about $100 billion in power infrastructure investment to close its electricity deficit, urging the government to implement deep structural reforms capable of attracting private capital into the sector.

Describing energy security as the foundation of national development, the former Central Bank Governor said countries without reliable, affordable and sustainable electricity inevitably experience weak industrial output, macroeconomic instability and poor living standards.

According to him, affordable electricity enables businesses, from small enterprises to large manufacturers, to expand production, reduce operating costs and improve competitiveness.

Sanusi cited International Monetary Fund (IMF) findings showing that energy security plays a critical role in industrial competitiveness, inflation control and economic stability, warning that even brief disruptions in electricity supply can weaken economic growth and fuel inflationary pressures.

He added that dependable electricity was equally essential for healthcare delivery, education, transportation and the digital economy, cautioning that Nigeria risked falling behind in the global transition to electric vehicles without deliberate investments in the power sector.

The Emir advocated an energy transition strategy that leverages Nigeria’s abundant natural gas resources while accelerating investments in renewable energy sources such as solar and wind.

He blamed decades of inadequate electricity supply for worsening poverty, unemployment and the high cost of living, noting that millions of households and businesses continue to rely on expensive generators, increasing production costs and exposing citizens to harmful carbon emissions.

Sanusi identified underinvestment, infrastructure vandalism, corruption, regulatory uncertainty, sector illiquidity and the absence of cost-reflective tariffs as major impediments to sustainable investment in Nigeria’s electricity industry.

He also noted that weak transmission and distribution infrastructure continues to constrain power delivery, resulting in frequent grid collapses and significant technical and commercial losses across the electricity value chain.

Pointing to Geometric Power’s operations in Abia State, Sanusi described the project as practical evidence of the transformative impact of stable electricity on economic development.

“If you want to see the impact of electricity on an economy, just look at Geometric Power and Abia State. Look at the transformation in Abia. This is living evidence of what people think is theory,” he said.

Reflecting on the power sector privatisation exercise, Sanusi recalled that Prof. Nnaji had earlier expressed concerns over the financial capacity of some electricity distribution companies, saying subsequent developments had validated those concerns.

He stressed that building a sustainable electricity market requires financially strong operators supported by effective regulatory institutions.

The symposium attracted political leaders, policymakers, academics and industry stakeholders, including former President Olusegun Obasanjo, Enugu State Governor Peter Mbah and Abia State Governor Alex Otti. It also featured a presidential fireside chat, innovation challenge presentations and a book review in honour of Prof. Nnaji.