The Lagos Chamber of Commerce and Industry (LCCI) has disclosed that about $1 billion (N165 billion) is lost annually to technical and commercial inefficiencies along Nigeria’s electricity value chain.
The LCCI president, Mrs. Toki Mabogunje, in a document on the country’s power sector noted that the huge amount can be minimised if all hands can be on deck to promote effective power supply value addition in the country.
In the document, the LCCI president urged the Federal Government to use its agreement with Siemens AG under the Presidential Power Initiative (PPI) to fix critical infrastructure deficit in the country’s power sector.
Mabogunje emphasised that the PPI will address these inefficiencies and unlock liquidity for the economy if properly managed.
The renowned industrialist disclosed that it was imperative for the Federal Government to address other frontline challenges plaguing the power sector, including gas shortage, limited distribution network, limited transmission lines, outdated equipment, and electricity theft.
The LCCI president explained that erratic power supply along the country’s electricity value chain is costing huge revenue leakages and other key sectors of the economy.
She said the real sector of the economy has been the biggest sector suffering inadequate power supply most with production cost rising on a daily basis.
According to her, the PPI MoA between the federal government and Siemens AG was critical to the development of power infrastructure in the country since the deal was meant to upgrade the country’s electricity network to achieve an operational capacity of 25, 000 MW by 2025 through a series of projects across three stages.
“During the year 2020, the Federal Government entered into an agreement with Siemens AG under the Presidential Power Initiative to fix critical infrastructure deficit in the power sector. The deal aims to upgrade the country’s electricity network to achieve an operational capacity of 25, 000 MW by 2025 through a series of projects across three stages.
“About $1 billion is lost annually to technical and commercial inefficiencies along the electricity value chain, and it is believed that the PPI will address these inefficiencies and unlock liquidity for the economy. “It is imperative for the Federal Government to address other frontline challenges plaguing the sector including gas shortage, limited distribution network, limited transmission lines, outdated equipment, and electricity theft,” she added.
