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Nigeria’s Power Generation Stagnates At 4,500MW

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Nigeria’s electricity generation has stagnated around an average of 4,500 megawatts. This is in spite of the country securing loans totalling over $3.23bn in about four years from international financial institutions.
Such global institutions include the World Bank, the African Development Bank, and the Japan International Cooperation Agency.
All of these institutions have supported Nigeria’s power sector with billions of dollars in loans, but many parts of Nigeria still suffer incessant blackouts.
These funds were approved to finance various projects to address the country’s electricity challenges and improve access to reliable power supply.
Power generation in the country has, however, persistently hovered around 4,500MW for a population of over 200 million people.
The daily power report obtained by The Tide’s source on Thursday, for instance, showed that peak generation reached 4,743MW as of 6 am on Thursday.
However, the average power generation in the past three years has remained at 4,500MW despite efforts by the government.
Since 2020, the World Bank has approved multiple loans to Nigeria’s power sector, focusing on sustainable energy solutions, distribution system upgrades, and overall sector reform.
The Sustainable Power and Irrigation for Nigeria Project, with a principal amount of $500m, was signed in September 2024 to enhance energy reliability and agricultural productivity.
In December 2023, the World Bank signed agreements for the Nigeria Distributed Access through Renewable Energy Scale-up Project, totalling $750m across three International Development Association credits.
This project is expected to expand renewable energy access and distributed electricity solutions.
In June 2023, the World Bank approved $1.5bn for the Power Sector Recovery Performance-Based Operation, which includes $301m already effective, $449m currently disbursing, and $750m from 2020, of which $715m has been disbursed.
This programme was designed to improve financial sustainability and operational efficiency within the power sector.
Also, the Nigeria Distribution Sector Recovery Programme, with $500m approved in February 2021, aims to support the capital and technical needs of electricity distribution companies.
On July 31, 2024, the African Development Bank Group approved a loan of $500m to the Federal Republic of Nigeria to help transform the country’s electricity infrastructure and improve access to cleaner energy sources.
According to a statement from the AfDB, this funding will finance the first phase of the Economic Governance and Energy Transition Support Programme, aimed at transforming the country’s electricity infrastructure and improving access to cleaner energy sources.
The statement also noted that the loan will help close the financing gap in the Federal Budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.
These initiatives are designed to decentralise the electricity supply industry and attract investments from subnational governments and the private sector.
In September 2022, the Federal Government said it would partner with the Japan International Cooperation Agency to implement a $200m electricity transmission expansion programme in Lagos and Ogun states.
The former Minister of Power, Abubakar Aliyu, had said the aim of the programme was to expand the transmission network in the identified states so as to effectively support industries in the South-West.
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USTR Criticises Nigeria’s Import Ban On Agriculture, Others

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The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the  Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.

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Expert Seeks Cooperative-Driven Investments In Agriculture 

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A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.

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NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers

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The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.

King Onunwor

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