Electricity not the only factor limiting Nigeria’s economy – Boason Omofaye

Earlier today, Nairametrics reported that Transcorp Nigeria Plc has plans to invest as much as $2.5 billion in the Nigerian power sector, a development that could improve the country’s electricity generation.

We also noted that the development would be good for the Nigerian economy which, for many years, has been adversely affected by epileptic power situation in the country.

Some people disagreed on Twitter –  But some people seemed to disagree, arguing that electricity is not the only factor that prevents businesses in Nigeria from performing well.

The narrative that constant power supply holds the key to business growth and development anywhere in Africa is a myth. @BBoason @StearsBusiness

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— Jonbull (@Jonbullish) March 26, 2019

Mr Baoson Omofaye contributed to the conversation – Even popular business journalist, Baoson Omofaye, was dragged into the conversation. And in his response, he explained that electricity is not the only factor militating against the success of businesses in Nigeria.

According to him, he recently anchored a session during Afreximbank’s 2018 AGM in Kigali, during which panellists established that other factors such as bad roads and bad policies also affect businesses.

At the @afreximbank 2018 AGM in Kigali, a session with some 50 or so CEOs of different African companies which I handled, identified so many other factors aside #electricity – roads, logistics, local skills-sets, tariffs, local rules, etc as faultlines for businesses. https://t.co/6Aza3bEQfr

— Boason Omofaye (@BBoason) March 26, 2019

But electricity is, indeed, a major problem–  Some people, however, maintained that inadequate power supply is, indeed, a major problem affecting Nigerian businesses. This has resulted in companies having to spend a lot on the purchase of petrol/diesel used in the generation of their own power.

They argued that if the electricity problem is sorted out, many businesses in the country would perform better.

https://twitter.com/special_one_loe/status/1110471186046246912

I believe in the overall, creating enabling business policies and environment covers power supplies and many other factors affecting businesses. Power is just one of many factors.

— Obinna Ezeifedi (@zefedi) March 26, 2019

Might not hold the key, but erratic power is a major stumbling block…if moved out of the way, we can find the key and open the door of business and economic growth

— Richard Awe (@Richard3d7) March 26, 2019

Nairametrics’ position on the matter – Let it be known that Nairametrics never implied that Nigeria’s inadequate power supply is the only problem affecting businesses in the country. Instead, we focused on epileptic power supply because it is central to the news story we earlier reported. Moreover, epileptic power supply is, indeed, one of the major problems affecting the country.

Once again, Transcorp’s proposed $2.5 billion investment will help boost the country’s energy sector. This will, in turn, position the Nigerian economy on the path to growth.