The Centre for the Promotion of Private Enterprise (CPPE) has issued a stark economic warning, revealing that Nigeria loses an estimated N7 trillion to N10 trillion annually due to its chronically unreliable electricity supply. This critical disclosure was made in the CPPE’s latest policy brief, “Fragile disinflation amid escalating energy shocks: Urgent action needed to protect citizens and businesses,” which was formally released by Dr. Muda Yusuf.
The report underscores a direct and damaging link between persistent power shortages and the nation’s economic health. It details how these energy deficits are exacerbating inflationary pressures while simultaneously crippling productivity for both households and businesses. This situation presents a significant challenge to any meaningful economic progress, as the high cost of alternative power continues to stifle growth.
Nigeria’s long-standing struggle with an unstable national grid has forced a widespread and costly dependence on private generators. These structural vulnerabilities in the energy sector have consistently made power costs a primary driver of inflation within the economy. The CPPE emphasizes that without urgent and coordinated policy intervention, the risks of worsening inflation and deeper economic instability remain acute, even amidst recent data suggesting a slight moderation in price increases.
To address this crisis, the CPPE has outlined several policy recommendations aimed at stabilizing the energy sector and, by extension, the broader economy. A key proposal involves the prudent management of oil revenue windfalls. The centre advises that such funds be strategically deployed to bolster foreign exchange reserves and provide critical support to productive sectors, thereby fostering a more resilient economic environment. The need for decisive action is clear if Nigeria is to close the defeating gap in its infrastructure and unlock its full productive potential.
