5 Ways Power Shortage Is Affecting Nigerian Businesses The World Bank data on ease of doing business released this year ranked Nigeria 169 out of 190 countries. Ten sub-indices were used for this ranking such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. One sub-indices that many Nigerians can relate with is electricity. Although all Nigerians are feeling the effects, businesses are feeling it more.i identifies 5 ways power shortage is affecting Nigerian businesses.

Huge amounts are budgeted for diesel and generator

There is no way any business can run smoothly without having a generator notwithstanding if it is a startup or an established business. The budget for generators, diesel as well as servicing these generators is humongous. These monies, if there is no power interruption, can be deployed to other aspects of the businesses.

Startups are likely to fail

Many young Nigerians have ventured into the uncertain world of entrepreneurship despite the recession. They have satisfied all the constitutional requirements for setting up a business but they have to still a factor in how to provide electricity. Over time, you will observe that some of these great startups are likely to fail due to power shortage. They can only do as much.

Businesses cannot employ

If electricity can be tackled in Nigeria, the monies companies spend on providing power can be used to employ more Nigerians. This is a part reason why some companies prefer to use contract staff.

No room for growth or expansion

Growth and expansion are essential to any business. The more businesses spend on electricity, the more they cut back on growth. Combining power shortage with the economic recession, some companies have no choice than to lay off some of their workers.

Businesses are moving out

Nigeria is the biggest market in Africa. At the same time, it has the biggest challenges. Some of them have decided to continue running their businesses in the country, others have made the decision to move their operations to other countries while maintaining a little presence in the Nigeria.

I still believe that power outage is our greatest problem in this country

OK

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Nigeria has to be generating at least 9200MW to meet up with where "small" Kenya is presently at.

The Political will has never been there over the years to truly increase capacity but all we had was lip service while resources to achieve it is being diverted.

.

Na today

A country as old as Nigeria should have stable power, good road and water but what we have is uninterrupted total blackout, horrible roads and expensive water.
Back then, water was free and people payed huge sum of money to watch porns but today, porn is being forced on us all for free, even on Nairaland's front page and we pay huge amount to get clean water.

Raji Fashola come hear o

Power like the name implies is the driving force for any business to grow...If only the Nigeria Govt knows this...Emphasis would have been placed on power...then watch other things adding up in dia own accord...if you see the amount of money some industries/firm Pays for power you go cry 4 dis kontri

For all I care once electricity and rail is fixed business will automatically transform for good

B

And it all comes back to power ! If there's power , there will be jobs - less people on the street -food - better security i.e. Less crime . It's only stable electricity that will move nigeria forward not a messiah.

ff

FAST FINGER FIRST!!!

Pavore9:
Nigeria has to be generating at least 9200MW to meet up with where "small" Kenya is presently at.

The Political will has never been there over the years to truly increase capacity but all we had was lip service while resources to achieve it is being diverted.

This is beyond political will , as long as we keep having square pegs in round holes, Nigeria will not achieve anything. We loose more power via outdated modes of transmission than consumption.

One of the major reason why big brother Nigeria production was moved to south africa (but the organisers will not tell you that).

interesting

Even an illiterate will give you 1million reasons power failure is affecting a company. So STFu

Since Fashola said there will be no review of the Power sector, shortage of electricity continues. Why?

Estimated bills. It is either Fashola doesn't know or he is pretending not to know.

What is estimated bills? Free money without service. These discos owners are making billions without providing services. Who no like better thing?

Enforce these extortioners to provide pre - paid meters and una go see American wonder. Light everywhere.


I don't know who made agreement with these extortioners but I know he/she did it intentionally to have his/her cut and maybe Fashola is having his share.

So on point. Though security is a major issue in relation to some points you mentioned there.

Any nation is doomed without effective power supply..

Its not magic,its common sense.

General Price Increase

Proudlyngwa:

This is beyond political will , as long as we keep having square pegs in round holes, Nigeria will not achieve anything. We loose more power via outdated modes of transmission than consumption.

To have square pegs in the proper holes takes political will that will intrude into the "gains" of vested interests. Take the appointment of the late Dora Akunyili into NAFDAC, it messed up the multi-billion dollar fake drugs business which involved importers, customs officers, the Police, the Judiciary and the distribution networks not to exclude politicians who get their cuts for shielding the criminal activities thus the attempt on her life.

Yes, l agree with you we lose so much through transmission.

Na so! Power is the back bone of any business.

How come we the citizen know all these, yet the government don't know? Are the government not part of the citizen

Naija Nepa

True

Bottom line is that it increases cost thereby reducing profit. All others are after effect.

Nairaland is just waking up after several years of MMM and snake stories

Pavore9:


To have square pegs in the proper holes takes political will that will intrude into the "gains" of vested interests. Take the appointment of the late Dora Akunyili into NAFDAC, it messed up the multi-billion dollar fake drugs business which involved importers, customs officers, the Police, the Judiciary and the distribution networks not to exclude politicians who get their cuts for shielding the criminal activities thus the attempt on her life.

Yes, l agree with you we lose so much through transmission.

Square pegs in round holes is not always political.
A good case is man know man in many appointments, institutions, what we need is digitalising and referencing transparency.

But what changes has the privatization brought