11th December, 2024
A financial expert and director of the African Development Bank (AfDB), Mr Wale Shonibare, has urged the Federal Government to prioritise power sector infrastructure development to drive the country’s industrial growth.
Shonibare, made the call in an interview with the News Agency of Nigeria, (NAN) on the sidelines of the African Investment Forum, Market Days 2024, which ended recently in Rabat, Morocco.
Shonibare, the Director of Energy Financial Solutions, Policy and Regulation Department, African Development Bank Group, said that achieving industrialisation requires affordable baseload power.
According to him, it is a necessity for economic growth and development.
Shonibare cited China and Germany as examples, adding that producing cheap electricity leads to lower production costs and more competitive products.
Shonibare noted that Nigeria has the potential to become a manufacturing hub for West Africa and possibly all of Africa with adequate power infrastructure.
“If we can get that power issue right, then we can add value to our production. We don’t just sell raw materials,” he said.
Shonibare noted that to do an aluminium smelter, for example, 40 per cent of the cost would be power.
According to him, if Nigeria can get that right, the country will be producing aluminium and have an automotive market where it can make cars.
“So, all of these things are very linked,” he said.
He emphasised that the sustainability of utilities and a well-structured tariff system were essential for attracting investment in the sector.
