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Periscoping Nigeria’s Economy @ 61 

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Three days ago, Nigeria celebrated its 61st Independence Anniversary without much fanfare. Apart from the annual ritual of gathering dignitaries at the Eagle Square, Abuja and in every state capital of the country to mark the event, there was no much enthusiasm and euphoria reminiscent of the October 1, 1960 Independence Day. 
Like the governor of Rivers State, Chief Nyesom Wike, noted in his Independence Day broadcast, last Friday, there’s not much to be excited about this year’s independence celebration except, perhaps, the fact that “we have remained independent and managed to struggle with our existence for all these years”.
At independence, Nigeria was, no doubt, a great nation with great potential in both human and natural resources. It was a rich and the largest economy in Africa. 
Today, given several negative economic indices about the country, can Nigeria truly pride itself as the giant of Africa, again? This is a one million dollar question many Nigerians, including economists and financial experts, may find difficult to answer in the affirmative. 
Nigeria may, indeed, take its first position in terms of population, and human/natural endowments in Africa, it is doubtful if it can proudly pride itself as the most progressive economy among its peers, today. 
Indices have shown that while many countries that were either at par or trailing behind Nigeria 61 years ago such as Malaysia, Singapore and Ghana, are responding positively to the emerging trend in the global economy, Nigeria appears lethargic, growing at a pace slower than the rate of expansion of its population. 
In 1960 for instance, Nigeria’s population was 45.1 million, today, it has grown above 200 million. Yet, only a little above 10 per cent economic progression has been recorded in the last 61 years, to keep up with the population expansion. 
It is a sad irony that a country which was once the pride of Africa is, today, one of the poorest countries in the world, with 40 per cent or 83 million of its total population living below the poverty line of less than $1 per day and N137,430 ($381.75) per year, according to the National Bureau of Statistics (NBS) data, last year. And if the World Bank’s income poverty threshold of $3.20 per day is used, Nigeria’s poverty rate is 71 per cent. 
It is also a sad commentary that 61 years after attaining independence, Nigeria’s economy which was once strong enough to feed the nation and the rest of Africa is now in tatters, gasping for breath. High inflation, massive unemployment, convulsed social infrastructure and unprecedented debt burden have continued to push more Nigerians into “dehumanising misery and abject poverty”, as Governor Wike rightly noted.
As many businesses are closing shops, many companies are relocating to neighbouring countries like Ghana and South Africa, leading to massive loss of jobs by Nigerians. Twenty seven per cent of Nigeria’s labour force (over 21 million Nigerians) are currently unemployed, according to statistics. Meanwhile, the nation’s currency – the Naira, has practically lost its value as a US dollar which was at par with the Naira in the 1960s is now exchanged for N580.
The grim picture about Nigeria’s economy, inconsistent growth trajectory and poor standard of living have ended up widening the income inequality, increasing the poverty rate and fuelling social tension in the country. 
Worst, the Covid-19 pandemic has further worsened Nigeria’s economic growth. As with most other economies around the world, the sharp drop in Nigeria’s Gross Domestic Product (GDP) growth is largely due to the slowdown in economic activity after the country resorted to a lockdown back in April, last year, to curb the spread of the Covid-19 virus.
The accompanying steep drop in oil prices amid a drop in global demand also left Nigeria drastically shorn of earnings given its dependence on the commodity as its biggest revenue source. 
For context, the United States slashed its Nigerian crude oil imports oil by 11.67 million barrels in the first five months of 2020, compared to what it bought in the same period of 2019. In fact, in the second quarter of 2020, local oil production dropped to its lowest since 2016, when Nigeria endured a full year of negative growth.
President Muhammadu Buhari himself acknowledged this economic asphyxiation in his Independence Day broadcast when he said “the past eighteen months have been some of the most difficult periods in the history of Nigeria. Since the civil war, I doubt whether we have seen a period of more heightened challenges than what we have witnessed in this period”.
Meanwhile, in spite of several assurances to turn around the fortunes of Nigeria’s economy, the latest economic data shows that the Nigerian government has continued to fall far short of projections in its Economic Recovery and Growth Plan, created in the aftermath of the 2016 recession. From manufacturing, agriculture, solid minerals, oil and gas to service sectors such as aviation and banking, the economy has been like a motion without movement.
Although the economy is not lacking in policy statements and blueprints by successive administrations, positive attitude towards policy implementation appears to be the major albatross militating against its growth.
Save for the telecommunication sector which has emerged as a catalyst for the nation’s economic growth for the past two decades, virtually every other sector is comatose. Power supply is epileptic, aviation industry has continued to wobble with muted ambition, maritime activities are crippled by ports congestion and piracy, trade and investment sector is bitten by the bug of Nigerian factor, the banking industry is feeding fat on a bleeding economy, while the oil and gas sector which has remained the mainstay of the country’s economy for years is shrunk by steep drop in oil prices amid a drop in global demand.
Since 2005 when President Olusegun Obasanjo’s administration liberalised the telecommunication sector, the sector has continued to provide a scaffolding for Nigeria’s broader economic growth. It has emerged as an unbeaten player in the nation’s economy for the past one decade, contributing geometrically to the GDP. Its contribution has almost doubled from 8.5 per cent in 2015 to 14.7 per cent, today. 
The NBS latest GDP data shows that the ICT sector grew by 6.47 per cent in Q1 2021, making it the fastest growing sector of the nation’s economy. From a subscriber base of 2, 271, 050 and GDP contributions of 0.85 per cent in 2002, today’s growth has surpassed all projections. Yet, experts say the potential for further growth is huge. 
But here appears to be the end of positive stories about Nigeria’s economy. Most other sectors are still finding it difficult to stand on a sound footing. One of such sectors is power. Despite being unbuddled more than a decade ago, the sector has been that of motion without movement over the years. Today, Nigeria’s installed generating capacity is merely 12,500 megawatts (MW) compared to South Africa’s 58, 095 MW, while the electrification rate still lags at 45 per cent, making the sector the missing link in propelling the economy of the country.
It is a sad commentary that a less endowed country like Ghana celebrated one year of uninterrupted power supply more than 10 years ago, whereas Nigeria that prides itself as the giant of Africa has not enjoyed one week of uninterrupted power supply since independence. 
Many energy experts have called for a review of the privatisation contract in the face of persistent blackout enveloping the country. For instance, an energy economist at the University of Ibadan, Professor Adeola Adenikinju, lamented that a decade after the defunct Power Holding Company of Nigeria (PHCN) was unbundled and sold to 11 distribution companies (DisCos), Nigeria is still experiencing epileptic power supply amid high tariff. 
The aviation sector is not better either. It is one sector that evolves with ambitious developmental policies since independence. One of such policies under the Muhammadu Buhari administration is code-named “Aviation Roadmap”. The policy has components that include a new national carrier, airport concession, aircraft leasing companies, Maintenance Repair and Overhaul (MRO) facility and aerotropolis. Till date, none of these projects has been delivered. 
The national carrier, for instance, after its launch in London in 2018, ran into a storm of public criticisms and had to be “temporarily” suspended by the Federal Government. However, there is an indication that the new airline – ‘Nigeria Air’, may hit the sky in 2022.
Similarly, about three years ago, the Federal Executive Council (FEC) approved the concession of four major airports in the country namely Lagos, Abuja, Port Harcourt and Kano. Till date, the facilities are yet to get the requisite patronage from the private sector. 
President of the National Union of Air Transport Employees (NUATE), Ben Nnabue, sometimes ago, took a swipe at the aviation sector. 
He said that whereas a state government like Akwa Ibom has since successfully launched its airline (Ibom Air) without any fanfare, “our country has woefully failed in its attempt to birth a national carrier after over 10 years of labour and colossal financial waste”.
He continued: “The proposed aircraft leasing company, national aircraft Maintenance, Repair and Overhaul (MRO) facility and aerotropolis development, all flagship programmes of this federal administration, have all suffered paralysis, despite massive support from all stakeholders and informed Nigerians. 
“They all followed the same path; bitten by the bug of hidden agenda, suffered the ailment of ill-motive to death, presently in the coffins of infidelity to the national cause, and awaiting to be buried in the grave of onemarism”.
Nnabue also described the airport concession as a travesty, aimed at draining the nation’s treasury and called on the Federal Government to put a halt to it. 
Many stakeholders, however, believe that the aviation sector has retained a good measure of stability under the Buhari administration. According to a member of the Aviation Safety Round Table Initiative (ASRTI), Olumide Ohunayo, the sector has sustained safety standards, retained Category-One rating, got good approvals from the Federal Government and received a palliative during the Covid-19 pandemic. 
He said the only drawback was the non-implementation of the aviation roadmap components which he believes, can still be achieved before the Buhari administration winds down in 2023. 
Another sector capable of revving up the engine of the nation’s economy is trade and investment. Unfortunately, like many other sectors, it is bitten by the bug of the Nigerian factor. 
While the sector could be said to have recorded some modest achievements in recent times, many experts believe it has not done well in promoting investment inflows into the nation’s economy. 
Chairman and Chief Executive Officer of Pan African Development Corporation, Odilim Enwagbara, said that the sector has not been business-friendly to young entrepreneurs who could have possibly impacted their God-given skills on the economy. 
According to him, “The Ministry of Industry, Trade and Investment has failed to pursue a nationalistic economic policy, trade diplomacy that would have protected Nigeria’s trade relations interest”.
He called on the government to “invite all small scale business owners to come together with their technical notch that can promote rapid economic development”.
In the area of agriculture, while it is convenient to say that the sector has been a consistent driver of the non-oil sector contributing 22.35% and 23.78% to the overall GDP in the first and second quarter of 2021, it is instructive to note that the impact of investment in the sector is yet to be felt by Nigerians, as the cost of food items in the market is currently getting out of the reach of the common man in the country. No thanks to the twin evil of insecurity and Covid-19. 
As it is usually mouthed by every successive administration at every independence anniversary since 1960, Nigeria cannot truly be said to have been stagnant without recording some economic milestones in the last 61 years. 
Under the present administration, for instance, some modest achievements have, indeed, been recorded especially in the area of oil and gas, maritime, transport and aviation, among others. The recent passage and signing of the Petroleum Industry Act, 2021; the launching of the NLNG Train 7, and the Deep Blue projects; the introduction of the Electronic Call-Up System and the launching of the Digital Economy are all efforts in the right direction by the Buhari administration. 
But how these lofty initiatives intend to deepen the nation’s economy and make Nigeria go beyond a never-ending potential for becoming a great nation to a truly great one remains to be seen.

By: Boye Salau 

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Can Cheap Batteries Deliver COP31’s 35% Electrification Goal?

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Electrification will be the major focus of the COP31 United Nations climate conference, to hold in Antalya, Türkiye, from today, November 9 to 20, 2026. The host country will invite the attending nations to sign onto a voluntary pledge to reach 35 percent electrification on a global level by 2035. J
ust a year ago, this target may have seemed overly ambitious, but now, experts say that a number of factors, including volatile oil and gas markets stemming from the war in Iran, paired with enormous advances in clean energy technologies, have put that goal within “striking distance.”
The months-long closure of the Strait of Hormuz has catalyzed the clean energy transition and the rate of electrification around the world. Before the United States and Israel began their military offensive in Iran back in February of this year, one fifth of the world’s oil and gas trade flowed through the Strait of Hormuz. Its abrupt closure therefore sent global oil and gas markets into turmoil and sent energy-importing countries around the world scrambling for alternatives, especially ones that they could produce and control on their home soil. And, just like that, renewable energy became the new face of energy security.
“Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”
But there is another, quieter force that has made this rapid global pivot toward renewable energies possible – the energy storage boom. Energy storage is critical to ensure grid stability in the face of rapid electrification and the increasing representation of intermittent energy sources like wind and solar power in national energy mixes. Major advances in the sector in recent years have made battery storage more affordable and more scalable than ever before – just in time for the world’s most recent bout of ‘fossilflation.’
“What’s really become a game-changer in the past two years is the rapid deployment of large-scale batteries that can hang onto ever larger amounts of power to be used throughout the day to smooth out demand and avoid overtaxing the grid,” Forbes wrote in a Monday report.
The second quarter of this year saw the United States’ largest-ever energy storage expansion, at 20.2 gigawatt-hours of additional capacity, according to a report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. That puts this year’s total additions at 30.8 GWh – and counting.
“Although President Trump is no fan of renewable energy or batteries, utility-scale energy storage capacity still nearly doubled to 165 GWh from 88 GWh in the first 18 months of his administration,” the Forbes article goes on to detail. “Grid operators, utilities and data center developers are all buying batteries as fast as they can to meet power demand and improve grid reliability. As a result, battery energy storage systems supplied more electricity to the grid in the year’s first eight months than in all of 2025.”
Ironically, despite his best efforts, Donald Trump is overseeing one of the United States’ most significant clean energy booms in the nation’s history as solar and wind have simply become too cheap to fail. And the United States is not alone. Buoyed by a flood of cheap solar panels and battery storage systems coming out of China, even the world’s poorest countries are experiencing clean energy revolutions.
“Some countries are pulling off stunningly fast energy transitions, adding solar so rapidly, it’s become a major source of electricity over the course of years — not decades,” reports CNN.
Pakistan has become the surprise poster child of this trend as residents install rooftop solar and batteries faster than any other market on Earth, as these systems provide electricity more cheaply and reliably than the country’s own beleaguered energy infrastructure. In addition, emerging economies including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have all overtaken the United States – the world’s largest economy – in their clean energy transitions.
By Haley Zaremba
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MAN, Ministry Tackle High Electricity Costs, Erratic Supply

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The Manufacturers Association of Nigeria has said it is working with the Federal Ministry of Power to address high electricity tariffs, unreliable grid supply and rising energy costs that are undermining industrial production and competitiveness in the country.
The association said the collaboration would focus on developing sustainable energy solutions for manufacturers, including renewable energy, battery storage, captive power generation and improved electricity distribution.
Speaking during the second edition of the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, the President, MAN, Dr. Ifeanyi Okoye, regretted that high electricity tariffs, unreliable grid supply and heavy dependence on fossil fuels had made industrial production exceptionally difficult.
Okoye said energy expenses consumed nearly half of some factories’ operating budgets, weakening their competitiveness, increasing product prices and threatening jobs.
He said manufacturers had continued to operate their own power infrastructure despite paying for electricity from the national grid.
“When energy expenses claim nearly half of a factory’s operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line,” he said.
Okoye said the association was moving beyond advocacy to implement practical solutions through its Industrial Energy Cost Reduction and Energy Support Programme, as key partners in delivering the initiative.
According to him, the programme would promote factory-roof solar installations, battery energy storage systems, captive natural gas generation and smart energy management networks to reduce production costs and protect manufacturers from global fuel price shocks.
He, however, stressed that manufacturers needed affordable, long-term financing to undertake the energy transition.
 “We cannot finance 21st-century industrial transitions with 30-day commercial bank loans at cut-throat interest rates,” Okoye said.
He said the summit would bring financial institutions, climate funds and green investors together to develop long-tenured, low-interest financing instruments, carbon credit opportunities and asset-financing
Also speaking, the Minister of Power, Joseph Tegbe, warned industrial customers against unauthorised electricity connections.
He disclosed that investigations had uncovered about 14 industrial customers along a particular corridor who owed more than N400m in unpaid electricity charges over several years.
Tegbe said such practices deprived the electricity sector of revenue needed to sustain power supply and unfairly burdened consumers who paid their bills.
“Such conduct deprives the sector of revenue that we need to sustain the supply, and unfairly burdens consumers who pay honestly,” Tegbe said.
The minister vowed to recover the outstanding charges and hold those responsible accountable, urging MAN to encourage its members to maintain lawful electricity connections and comply with applicable regulations.
 Tegbe acknowledged that manufacturers continued to struggle with electricity interruptions, poor power quality, vandalism and electricity theft, adding that the government was directing investments towards addressing the underlying problems.
Speaking on behalf of manufacturers, the MAN South-East Chairman, Ada Chukwudozie, said energy had become a question of survival and competitiveness for Nigerian manufacturers.
 She said manufacturers were increasingly financing and managing their own electricity infrastructure while struggling with rising production costs and limited access to capital.
 “We are effectively running a second power system paid for by ourselves, besides the grid we also pay for. And that is why for the Nigerian manufacturer, energy is no longer simply an operational issue. It is a question of survival and competitiveness,” Chukwudozie said.
 She explained that unreliable electricity supply forced manufacturers to make difficult choices between purchasing energy and raw materials, maintaining equipment and paying workers.
The regulator added that manufacturers could strengthen their competitiveness by adopting cleaner energy sources as international markets increasingly imposed environmental and carbon-related requirements on products and supply chains.
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Reps Panel Dismisses Petition Against NIPCO gas Licence

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The House of Representatives has dismissed a petition seeking the cancellation of gas distribution licences awarded to NIPCO Plc, ruling that the petitioners failed to provide credible evidence to substantiate their allegations.

The decision followed a review by the House Sub-Committee on the Petition concerning NIPCO Plc, which rejected the complaint filed by the Nigerian Energy Security Watch Group (NESWG) for lacking substance and evidential support.

The petition had called for an investigation into, and the suspension and cancellation of, gas distribution licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NIPCO for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

Announcing the decision last Thursday, the Chairman of the Sub-Committee, Peter Aniekwe, said the petitioners relied on hearsay and failed to establish any wrongdoing in the licensing process.

“At its sitting today, the Sub-Committee resolved not to proceed with the investigation, and the petition is accordingly dismissed,” Aniekwe said.

The committee, which also includes Dahaltu Shehu, was constituted in October to examine the petition. It was granted an additional 14 days on October 26 to conclude its assignment.

Aniekwe said the issuance and regulation of gas distribution licences were statutory responsibilities of the NMDPRA under the Petroleum Industry Act, while stressing that the National Assembly would continue to exercise oversight over the process.

He disclosed that the regulator had committed to completing and rolling out gas distribution licensing in the fourth quarter of 2026, adding that the committee would monitor the implementation.

“Nigerians deserve a gas market that is open, competitive and safe, and investors deserve rules that are clear and stable,” he said.

The lawmaker reaffirmed the House’s commitment to considering petitions from individuals and organisations with genuine concerns about the petroleum sector, saying “each complaint would be assessed on its merits”.

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