Dr. Akinwumi Adesina, President of the African Development Bank Group, said the lack of stable electricity in Nigeria is killing industries in the country, adding that based on an International Monetary Fund report, about $29bn is lost annually due to poor power supply in Nigeria.
Adesina made this known in his lecture titled, ‘Overcoming Binding Constraints to Competitive Manufacturing for Intra-Regional Trade’, which he presented at the Manufacturers Association of Nigeria Annual Meeting on Tuesday in Abuja.
He lamented the low export revenue generated from the manufacturing sector, representing only three per cent of total revenues from export.
According to him, “The manufacturing sector of Nigeria represents only three per cent of total revenues from exports, but accounts for 50 per cent of imports in the country.
“Instead of being forward looking in expanding the share of the manufactured goods in its total export revenue, Nigeria focuses on the model of import substitution. Import substitution, while important, is a very restrictive vision.”
According to the AfDB president, it is challenging to be a manufacturer in Nigeria, with one of the major challenges being the very high cost and unreliability of electricity supplies.
Meanwhile, Techeconomy.ng previously reported that Akinwumi Adesina, President of the African Development Bank Group, had promised that the bank will provide Nigeria with strong support to tackle its food security challenges.
Adesina made this known while receiving a high-level Nigerian delegation led by Mohammad Abubakar, Nigeria’s Minister of Agriculture and Rural Development, Dr Mohammad Abubakar.
The bank issued this in a statement titled, ‘African Development Bank Group President, Akinwumi Adesina, assures Nigeria of bank’s strong support to achieve food security,’ on Tuesday, October 19.
The statement read: “Adesina said the bank’s strategic support for Nigeria’s food production would be hinged on five factors: support, scale, systemic, speed, and sustainability.”
“I want to assure President Buhari that the African Development Bank will provide his government with very strong support to tackle the country’s food security challenges.
“Inflation in Nigeria is high, at 16 per cent or more. Of course, the biggest share of the consumer price index is the price of food, at almost 65 per cent. So, if we can drive down the price of food, of course, we can drive down inflation.”