Thursday 11 April 2013

THE IMPORTANCE OF ENERGY AND POWER IN THE NIGERIAN ECONOMY

The power and energy deficit in the Nigerian economy and there attendant implications are the subject of discuss. Permit me the luxury of elucidation here.

To the average man in the street, power outage is the norm. Therefore, if there is power for a period of eight consistent hours, there must be something wrong with the service. This is usually greeted with cynicism and seen as a fluke.

In other climes, constant power supply has made the economies of such Nations top notch.

Perhaps, a brief on the value chain of power and energy will bring home its importance to any economy.

With the availability of constant power, a Babar,  Bar, small and medium/ large scale industries can run full capacity if all other factors are equal. All other factors like good roads, access to the sea, availability of raw material, availability of the trained Human capital and funds, adequate security etc.

Now, with constant power, these establishment can run an average of three shifts per day depending on the demand for their services. The implication here is that more people will be removed from the labor market into the labor force. The value chain, in some of these organizations with their imperatives will boost the economy and diversify the country's economic portfolio. This is common sense.....

1 comment:

  1. sir, that was a nice analysis, clear and straight, the government don't need all the resources in the nation to implement such policy. Only if there is a redirection on the governmental administration, there will be no true nation-state judging from the present state of the nation.

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