Nigeria’s power sector has been plagued by persistent grid collapses, a challenge that has significantly hampered the nation’s economic growth and industrial development. George Onafowokan, the Managing Director of Coleman Wires and Cables Industries Limited, has advocated for a prioritization of local solutions to address this recurring problem. He emphasizes the need for full deregulation of the power sector, coupled with a robust industrialization strategy focused on local production of essential components like wires and cables. Onafowokan believes that replacing obsolete infrastructure with locally sourced materials is crucial, as Nigeria possesses the capacity to meet and even surpass its power sector needs. While acknowledging the potential cost implications of local production, he argues that the right investments can only thrive under private-sector-driven policies, fostering a more competitive and efficient market.
Onafowokan commends the current administration’s renewed focus on the power sector, recognizing the inherited challenges and the long-term commitment required for effective solutions. He points out that the recurring grid collapses and inadequate power supply stem from an imbalance between generation and transmission capacities. He cautions that simply injecting funds into the sector without proper policy implementation will not yield the desired results. The billions allocated, he argues, must be strategically deployed to address the root causes of the power crisis, rather than serving as mere financial interventions. He further emphasizes the importance of a sustained, long-term approach, drawing a parallel to the initial progress made after the return to democracy, which was unfortunately followed by a period of complacency.
Onafowokan’s call for local solutions aligns with broader concerns within the Nigerian manufacturing sector regarding the impact of electricity tariff hikes. The Manufacturers Association of Nigeria (MAN) has consistently advocated for a reduction in these tariffs, which have increased by up to 250 percent. MAN President Francis Meshioye has reiterated the association’s commitment to this campaign, highlighting the detrimental effects of high electricity costs on manufacturers, who play a crucial role in job creation and economic stability. This underscores the interconnectedness between a stable and affordable power supply and the overall health of the Nigerian economy.
The focus on local solutions in the power sector carries several potential advantages. Firstly, it can stimulate domestic industries, creating jobs and boosting local expertise. This aligns with the government’s broader economic diversification agenda, reducing reliance on imported goods and services. Secondly, utilizing locally produced materials can potentially mitigate supply chain disruptions and foreign exchange fluctuations, ensuring a more stable and resilient power infrastructure. Thirdly, local production can foster innovation and technological advancement within the Nigerian power sector, leading to more tailored and effective solutions.
However, the successful implementation of a local solutions strategy requires careful consideration of several factors. Addressing the higher production costs associated with local manufacturing is crucial. This might involve government incentives, tax breaks, or targeted investments in research and development to enhance efficiency and competitiveness. Furthermore, ensuring quality control and adherence to international standards is paramount to guarantee the reliability and safety of locally produced power infrastructure components. Building local capacity through training and skills development programs is also essential to sustain the long-term viability of this approach.
Ultimately, addressing Nigeria’s power challenges requires a holistic and integrated approach. Onafowokan’s call for prioritizing local solutions offers a valuable pathway towards achieving a more stable and sustainable power sector, while also contributing to broader economic development goals. It necessitates a collaborative effort between the government, the private sector, and industry stakeholders to create an enabling environment for local production, innovation, and investment. This includes addressing the challenges of high production costs, ensuring quality control, and fostering a long-term commitment to sustainable power sector development. The success of this approach hinges on effective policy implementation, consistent regulatory frameworks, and a shared vision for a more resilient and prosperous Nigerian economy.
