In a recent discussion, the Lagos Chamber of Commerce and Industry (LCCI) urged the federal government to consider privatizing the national grid as a strategy to address Nigeria’s persistent power crisis and the frequent failures of the national grid system. This appeal was made public in a statement titled “Finding a Lasting Solution to the Frequent National Grid Collapse.” The call comes amid Mr. Olusegun Omotola’s assurances—acting Director-General of the Bureau of Public Procurement (BPP)—to the Manufacturers Association of Nigeria (MAN) about bolstering the government’s Executive Orders 003 and 005 aimed at boosting the patronage of locally manufactured goods.
Dr. Chinyere Almona, Director General of LCCI, highlighted the serious concerns within the business community regarding the regular collapse of the national grid, which is the primary source of hydroelectric power for the country. She noted that Nigeria has experienced eight grid failures this year alone, with three incidents occurring within just one week.
“What have we learned from past failures and recovery attempts?” she questioned. “By now, after numerous incidents, the management of the national grid should have pinpointed the root causes and implemented lasting solutions. It’s alarming that there seems to be no comprehensive understanding of these issues or the lessons learned from past restoration efforts. With roughly 105 collapses over the past decade, power sector stakeholders should know the factors contributing to these failures and how to avert them. We are concerned about the evident lack of awareness among regulators in the power sector.”
Furthermore, LCCI pointed out that the Nigeria Electricity Regulatory Commission (NERC) reported a staggering 60.86% decrease in meter installations by electricity distribution companies in the second quarter of 2024. Only 49,188 meters were installed compared to 125,664 in the first quarter.
“We urge the government to maintain its course with reforms in the power sector, particularly regarding the metering targets initially set. We also call on NERC to foster a favorable regulatory environment for the Electricity Distribution Companies (DisCos) to leverage a variety of financing models outlined in the 2021 Meter Asset Provider (MAP) and the National Mass Metering Programme (NMMP),” LCCI stated.
Almona emphasized the advantages that a stable national grid could bring to businesses in Nigeria. “A consistent power supply can significantly reduce production costs, making Nigerian goods more competitive globally. It can also enhance our capacity to earn foreign exchange by supplying electricity to neighboring countries,” she noted, referencing the NERC’s 2023 Annual Report which indicated that international customers from countries like Niger, Benin, and Togo paid $50.36 million to the Nigerian Electricity Supply Industry (NESI) for electricity distribution.
While the chamber recognized ongoing efforts and reforms in the power sector, it expressed hope for a swift continuation of these initiatives. In a related event, Omotola reassured Nigerian manufacturers about the BPP’s commitment to reinforce the execution of executive orders designed to enhance the uptake of Made-in-Nigeria products by government ministries, departments, and agencies (MDAs).
Delivering a keynote address at the “Made in Nigeria Exhibition,” which is part of MAN’s 52nd Annual General Meeting, Omotola emphasized that public procurement is a pivotal tool for shaping the economy. He noted that in Nigeria, where the government is a significant spender, effective procurement policies can drastically influence industrial growth.
“Public procurement policies that favor local manufacturing are crucial,” he stated, mentioning the government’s initiatives from 2017—Executive Orders 003 and 005—that encourage all MDAs to prioritize local suppliers in their procurement processes.
Omotola proposed raising the current local content requirement from 40% to between 60-70% over the next five years for key sectors. “The time for half-measures is over,” he urged. “We need a comprehensive and intentional approach to developing our manufacturing sector, grounded in sound policies and strategic investments.”
Meanwhile, President of MAN, Mr. Francis Meshioye, reaffirmed the necessity for a focused strategy to enhance domestic production. He acknowledged the government’s attempts to support Made-in-Nigeria products but highlighted the ongoing challenges associated with effective implementation.
“We call on all government agencies to uphold the Executive Orders and fully comply, as directed by President Bola Tinubu,” Meshioye asserted. He expressed confidence that through continued advocacy, they could foster an economy where locally produced items are favored both locally and in international markets.
Exhibitor and National Sales Manager of HMA Medicals Limited, Mr. Charles M. Akaka, shared positive insights about how improved adherence to the executive orders has positively impacted their sales of medical products, including syringes and intravenous fluids.
