{"id":347559,"date":"2025-09-08T01:54:32","date_gmt":"2025-09-08T00:54:32","guid":{"rendered":"https:\/\/www.thetidenewsonline.com\/?p=347559"},"modified":"2025-09-07T19:07:01","modified_gmt":"2025-09-07T18:07:01","slug":"nigerias-gdpll-hit-357bn-if-power-supply-gets-to-8000mw","status":"publish","type":"post","link":"https:\/\/www.thetidenewsonline.com\/?p=347559","title":{"rendered":"‘Nigeria\u2019s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’"},"content":{"rendered":"
The Managing Director, Financial Derivatives Company Limited (FDC),\u00a0 Bismarck Rewane, has said that Nigeria\u2019s Gross Domestic Product (GDP) could rise to $357b\u00a0 if electricity supply would increase from the present 4.500MW to 8,000MW.<\/div>\n
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Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country\u2019s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.<\/div>\n
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In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.<\/div>\n
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He said, \u201cAccording to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.<\/div>\n
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\u201cIf power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.\u201d<\/div>\n
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The FDC\u2019s Chief Executive said \u201cin the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.<\/div>\n
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\u201cThe initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.<\/div>\n
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\u201cTwenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.<\/div>\n
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\u201cThe way out is a bailout, or it is lights out for Nigeria”, he warned.<\/div>\n
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He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan\u2019s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.<\/div>\n
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Rewane, who defined a bailout as \u201cinjection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.<\/div>\n
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He said, \u201cThe President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.\u201d<\/div>\n
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Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.<\/div>\n
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Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country\u2019s economy if Nigeria\u2019s actual power generation could rise from today\u2019s 4,500 MW to around 8,000 and 10,000 MW.<\/div>\n
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The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.<\/div>\n","protected":false},"excerpt":{"rendered":"

The Managing Director, Financial Derivatives Company Limited (FDC),\u00a0 Bismarck Rewane, has said that Nigeria\u2019s Gross Domestic Product (GDP) could rise to $357b\u00a0 if electricity supply would increase from the present 4.500MW to 8,000MW. Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase […]<\/p>\n","protected":false},"author":1,"featured_media":347579,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":["post-347559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-energy"],"_links":{"self":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts\/347559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=347559"}],"version-history":[{"count":1,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts\/347559\/revisions"}],"predecessor-version":[{"id":347589,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/posts\/347559\/revisions\/347589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=\/wp\/v2\/media\/347579"}],"wp:attachment":[{"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=347559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=347559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetidenewsonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=347559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}