Nigerians Spent N17.5 Trillion On Power Generators In 5 Years

In a fresh investigation, The Punch has gathered that Nigerians have spent N17.5 trillion on generators in the course of five years, which equals approximately to N3.5 trillion in a year.

Citing the findings of the Committee on Public Inquiry on Metering in the Nigerian electricity supply industry, set up by the National Electricity Regulatory Commission, The Punch says 23.73 million Nigerian households of the 28.9 million (over 82%, representing more than a half of Nigeria’s population) are lacking access to the national electricity grid.

Additionally, about N2 trillion is spent by of small and medium scale enterprises, banks, other corporate entities and traders across the country who have no other option but to rely on generators.

The ever-worsening power supply made many Nigerian factories close shops, effectively increasing the rates of unemployment. Other manufacturers chose to relocate to neighbouring countries to reduce spendings on fuel for generators.

Not only the high cost of procuring energy and 95% raise in the industrial tariff for electricity are affecting Nigerian manufacturers but also unavailability of the product.

It is believed, The Punch reports, that, with the exception of Lagos state that has reduced government’s energy cost through its four independent power plants, other state governments (774 local government areas) have back-up generators to rely on when grid power fails.

About 550 ministries, departments and agencies are also believed to have supplementary generators. To fuel them, the federal government allocated N815 million for the purchase of fuel and lubricants for cars and generators in the presidency, office of the Secretary to the government of the federation and parastatals under them. The 2015 budget also includes N12, 734,332 that will be used for vice-president’s plants and generators. Other agencies under the presidency were also not left out of the provision for fuel and lubricants.

Nigerians are forced to rely on generators because of unstable and weak power supply that ranges from just 2,000 to 3,500 megawatts. This is one of the lowest electricity consumption indicators on a per capita basis in the world when compared with the average per capita electricity usage in Libya (4,270kWh), India (616kWh), China (2,944kWh), South Africa (4,803kWh), Singapore (8,307kWh) and the United States (13,394kWh).