Nigeria’s Power Crisis: Rewane’s Growth Warning

Nigeria’s Power Sector Crisis: A Significant Economic Threat Demanding Urgent Reform

Nigeria’s journey towards meaningful economic growth is being significantly hampered by an ongoing crisis in its power sector, a situation described by leading financial expert Bismarck Rewane as an “economic threat” that can no longer be ignored. Rewane, the Managing Director of Financial Derivatives Company, asserted that without decisive improvements in electricity supply and distribution, Nigeria’s economic aspirations will remain elusive “pipe dreams and wishful thinking.”

Speaking at the recent 2026 Economic Summit, organised by the Redeemed Christian Church of God, Christ the Lord Parish, Lekki, Lagos, under the theme “Positioned for Advantage in a Shifting Economy,” Rewane underscored the critical role of power, alongside agriculture and manufacturing, in driving economic productivity. He also highlighted the burgeoning importance of fintech and telecommunications in this equation.

The persistent inadequacies in power supply have a direct and profound impact on business productivity, particularly for small and medium-scale enterprises (SMEs). Rewane pointed out that many SMEs are currently compelled to bear the exorbitant costs associated with operating on diesel and petrol generators. This burden is exacerbated by the ongoing geopolitical instability in the Middle East, which has driven up fuel prices for approximately four weeks. Furthermore, these businesses are finding it increasingly difficult to pass these escalating operational costs onto consumers, who are already grappling with stagnant wage growth. Even artisans engaged in essential services like milling and vulcanising are struggling under the weight of unreliable electricity.

From this perspective, Rewane emphatically positioned power as a fundamental driver of national development and progress. He revealed that Nigeria has invested a staggering sum, no less than $30 billion, into the power sector between 1999 and the present day, with $16 billion allocated during the tenure of former President Olusegun Obasanjo. Despite this substantial investment, the country’s electricity generation has seen a decline, struggling to maintain a supply of around 4,000 megawatts today, compared to approximately 5,000 megawatts generated in 1999. This stark reality underscores the urgent need for the government to implement planned reforms and comprehensively overhaul the sector.

Diverse Perspectives on Navigating a Changing Economic Landscape

The hybrid economic summit also featured valuable insights from a panel of experts who offered practical recommendations for Nigeria to better position itself in the current economic climate. Panellists Nike James, Sola Adesakin, and Chidi Okpaluba, alongside moderator Uwa Osa-Oboh, collectively emphasized the importance of strategic investment in key sectors. Their recommendations included:

• Agriculture: Investing to enhance food security and create export opportunities.
• Manufacturing: Developing robust local production capabilities to reduce import dependency.
• Fintech: Harnessing technological innovation to drive financial inclusion and efficiency.
• Human Capital: Prioritising education, skills development, and healthcare to build a productive workforce.
• Infrastructure: Improving essential infrastructure, including transportation and energy, to support economic activities.

From an SME perspective, Dr. Chidi Okpaluba stressed the necessity of an “identity shift.” He articulated that the world responds not to aspirations but to tangible realities, urging businesses and individuals to cultivate an identity that aligns with success.

Personal Finance, Taxation, and the Role of the Church in Community Development

On the subject of personal finance and wealth creation, Mrs. Sola Adesakin encouraged attendees to explore the opportunities presented by the Nigerian stock market, noting its recent positive trajectory. She advised that consistent delivery of value would be rewarded, and that “shares are going up.”

Nike James provided crucial insights into the new tax regime, detailing its implications and practical applications. She explained that the tax burden has been rebalanced, shifting from low-income earners to high-income earners, and analysed its impact on employees, the self-employed, and small businesses. Her presentation covered essential tax compliance requirements, available exemptions, and applicable deductions. James also urged citizens to meticulously maintain financial records for their income and tax filings, emphasizing it as a moral and civic duty.

The Convener of the Summit, Pastor Tunde Netufo, expressed his satisfaction with the turnout, explaining the annual event’s purpose as a cornerstone of the Parish’s Christian Social Responsibility initiatives, inspired by the RCCG General Overseer, Pastor E.A. Adeboye. Pastor Netufo stated that the summit aims to:

• Give back to society.
• Stimulate economic growth.
• Eradicate poverty.
• Foster a just and egalitarian community.

He highlighted the theme, “Positioned for Advantage in a Shifting Economy,” as particularly pertinent given the current global economic uncertainties, referencing the volatile situation in the Middle East and its impact on crude oil prices and local fuel costs.

Pastor Netufo also underscored the limitations of government intervention alone in addressing societal challenges, emphasizing the church’s vital role in community development. He advocated for empowerment over temporary relief, likening the act of teaching someone to make food to empowering them to become self-sufficient, thereby stimulating grassroots economic activity and growth. The annual Economic Summit successfully provided an engaging platform for insightful discussions and interactive sessions, attracting a significant audience both in person and online.