UNDP Uncovers N2bn Nigeria Loses to Poor Power Supply Annually
By DAYO ADESULU
UNDP, Lawmakers Push for Renewable Energy Adoption to Tackle Power Crisis
United Nations Development Programme (UNDP) has stated that Nigeria’s economy is losing more than N2 billion annually due to unreliable and inadequate electricity supply. This disclosure was made on Monday by the UNDP Resident Representative in Nigeria, Elsie Attafuah, during the First National Legislative Conference and Expo on Renewable Energy in Lagos.
The event, jointly organised by the House of Representatives Committee on Renewable Energy and the UNDP under its Parliamentary Development Programme, drew high-level participation from government officials, foreign delegates, and stakeholders in the energy sector.
Agriculture, Jobs Worst Hit by Poor Electricity—UNDP
Attafuah lamented that the persistent electricity shortfalls are hampering productivity across key sectors, particularly agriculture. She highlighted how post-harvest losses, especially for perishables like yam, fruits, and vegetables, are being exacerbated by the lack of adequate cold storage and processing systems powered by reliable electricity.
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“Agricultural produce is being wasted due to poor power supply. This has had a direct impact on food security and farmer income,” she said.
The UNDP representative also linked the power crisis to Nigeria’s worsening unemployment rate, noting that many small and medium-scale enterprises (SMEs) are unable to thrive in a poor energy environment. However, she added that UNDP’s interventions in some northern states by providing clean energy solutions to farmers had started yielding positive outcomes in productivity and income generation.
Renewable Energy Not Optional—Speaker Abbas
The Speaker of the House of Representatives, Tajudeen Abbas, who delivered the keynote address, declared that transitioning to renewable energy is no longer optional for Nigeria. He said the country must embrace a transformative energy shift if it intends to secure its economic future and play a meaningful role in the global energy landscape.
“This conference marks a crucial step for the Nigerian Parliament to contribute meaningfully to the global response to energy and climate challenges,” Abbas stated.
He emphasized that renewable energy is not only crucial for energy security and economic development but also for building climate resilience and achieving sustainable growth. He noted that 2024 recorded 585 gigawatts of new renewable energy capacity worldwide, accounting for 92% of total global additions.
Massive Global Shift Toward Clean Energy
Abbas pointed out that $1.7 trillion out of $2.8 trillion in global energy spending in 2023 was invested in clean energy technologies, underlining a trend that Nigeria cannot afford to ignore.
“For a country like Nigeria that still depends heavily on fossil fuel exports, the global transition to renewables presents both serious challenges and new opportunities,” he explained.
Abbas warned that failure to adapt could leave Nigeria behind, while proactive reform could position the country as a magnet for renewable energy investments.
Legislative Backing for Renewable Energy Expansion
To support the energy transition, Abbas revealed that the House of Representatives has passed tax reforms that remove Value Added Tax (VAT) on renewable energy equipment and Compressed Natural Gas (CNG), a move designed to attract private-sector investment.
Additionally, the legislature is working on bills to provide legal backing for the Renewable Energy and Energy Efficiency Policy adopted in 2015.
“We’re also developing policies that will boost clean cooking solutions, which are essential for protecting the environment and improving public health,” he added.
Stakeholders Call for Urgent Reforms
The Chairman of the House Committee on Renewable Energy, Hon. Victor Ogene, stressed that the UNDP conference was convened to help Nigeria break away from its dependence on fossil fuels and to champion clean industrial growth. He said that renewable energy is vital to solving Nigeria’s energy and employment crises simultaneously.
Representatives from Abia, Enugu, and Osun States also lent their voices to the call for investment in reliable, sustainable, and inclusive power infrastructure.
International and Subnational Support
The conference featured notable contributions from both international and subnational stakeholders, including:
- Prof. Benard Afliator, First Deputy Speaker of Ghana’s Parliament (representing Speaker Alban Bagbin)
- Anika Altaf, Executive Director of INCLUDE Knowledge Platform
- Ikechukwu Monday, Abia State Commissioner for Power and Utilities
- Chief Kingsley Nnaji, Enugu State Special Adviser on Energy, Oil, and Gas
- Prof. Chinwe Ogbuagu, Climate Change Consultant to Osun State
These speakers reinforced the call for collective action and stronger cross-border collaboration to achieve energy equity and reduce climate risks.
Conclusion
The repeated economic losses, food wastage, and rising unemployment linked to Nigeria’s power supply challenges underscore the urgency of transitioning to renewable energy sources. With legislative backing, international support, and state-level cooperation, the country stands a chance to unlock its energy potential and lead in Africa’s clean energy future.
