Nigeria Loses Over N2 Billion Yearly to Poor Power Supply – UNDP

Nigeria continues to suffer heavy economic losses due to its poor electricity system, with over N2 billion lost each year, according to the United Nations Development Programme (UNDP).

This was revealed by Elsie Attafuah, the UNDP Resident Representative, during the first National Legislative Conference and Expo on Renewable Energy held in Lagos. 

The event was organised by the House of Representatives Committee on Renewable Energy in partnership with UNDP under its Parliamentary Development Programme.

Attafuah pointed out that the inadequate and unreliable power supply is affecting various sectors of the Nigerian economy, especially agriculture. “Farmers are losing perishable goods like yam, fruits, and vegetables due to lack of electricity for storage,” she said.

She added that the poor power situation is also contributing to Nigeria’s high unemployment rate. However, she noted that the UNDP’s ongoing support for farmers in northern Nigeria by providing electricity-generating equipment is already making a difference.

According to her, farmers are beginning to see better profits and increased participation thanks to improved power access.

Also speaking at the event, the Speaker of the House of Representatives, Tajudeen Abbas, stated that moving to renewable energy is now a necessity for Nigeria, not a choice.

“This conference is an important step for Nigeria’s lawmakers to join the global efforts to tackle a serious issue. Nigeria, like other countries, must make the shift to sustainable energy systems,” Abbas said.

He explained that renewable energy is not only essential for economic growth and energy security, but also for protecting the environment and ensuring long-term development.

Giving some global context, Abbas mentioned that in 2024 alone, 585 gigawatts of renewable energy capacity were added worldwide—making up 92% of all new electricity generation. He also revealed that $1.7 trillion of the $2.8 trillion global energy investment in 2023 went into clean energy and related technologies.

“For Nigeria, which depends mostly on oil and gas exports, the global shift to renewable energy presents both risks and opportunities,” he said. Abbas stressed that Nigeria must diversify its economy and attract investment in green energy to stay competitive and financially secure.

To support this transition, the House of Representatives has passed new tax reform laws that remove Value Added Tax (VAT) on renewable energy equipment and compressed natural gas (CNG).

Abbas also said that lawmakers are working on legal backing for Nigeria’s Renewable Energy and Energy Efficiency Policy, which was first introduced in 2015.

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He further highlighted the importance of improving access to clean cooking energy, which would help protect public health and reduce environmental harm. These efforts, he said, are being developed in close collaboration with industry players and other stakeholders.

Chairman of the House Committee on Renewable Energy, Victor Ogene, said the purpose of the conference was to help Nigeria reduce its over-reliance on fossil fuels and encourage industrial growth through clean and sustainable energy.

Ogene, who represents Ogbaru Federal Constituency, stressed that renewable energy has great potential for job creation and long-term development.

State officials from Abia, Enugu, and Osun also attended the conference and called for better energy access and the development of dependable power infrastructure across the country.

Other key speakers included Ghana’s First Deputy Speaker of Parliament, Prof. Benard Afliator (representing the Speaker, Alban Bagbin); Executive Director of INCLUDE Knowledge Platform, Anika Altaf; Abia State Commissioner for Power and Utilities, Ikechukwu Monday; Enugu State Special Adviser on Energy, Oil and Gas, Chief Kingsley Nnaji; and Osun State Climate Change Consultant, Prof. Chinwe Ogbuagu.

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