Nigeria’s Electricity Grid Fails; Local Manufacturers Lose Market Share in West Africa

Nigeria’s Electricity Grid Fails; Local Manufacturers Lose Market Share in West Africa

Nigeria’s electricity grid collapsed a few hours ago, leading to a major failure in the system: “We regret the inconvenience this has caused electricity consumers. Investigations would be conducted to establish the immediate and remote cause(s) of the multiple trippings as soon as the grid is fully restored”, noted TCN, the electricity transmission company. They have gotten some sections back as I write.

Meanwhile, the President of the Manufacturers Association of Nigeria (MAN), Mansur Ahmed, has noted that made-in-Nigeria products have lost competitiveness in the ECOWAS due to the closure of the border: “The increased traffic through our seaport as a result of the closure has increased the perennial congestion at the Apapa and Tin Can Island Ports, leading to greater challenges for exporters and increased demurrage cost, as well as other port levies...

Major manufacturers of beverages, polypropylene bags, tobacco, cement, toiletries, and cosmetics industries were losing markets they had worked very hard to secure in the West and Central African region.

“These manufacturers were hoping to leverage their market share to secure a strong position in the African Continental Free Trade Area, which kicks off in January 2021.

Simply, Nigeria closed land borders and made the seaports challenging for asking everyone to ship via the sea. Certain things in Nigeria do not make sense: you do not have capacity via the sea, and yet you are asking everyone to use the sea when the land is free! Can somebody explain what is happening in Nigeria?

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Of course we have lost our mojo according to data from the IMF and World Bank.

Top 10 Fastest Growing Economies in Africa in 2018 (World Bank, IMF….)

[1] Ghana >>>>>>>8.3%
[2] Ethiopia >>>>>>8.2%
[3] Cote d’Ivoire>>>7.2%
[4] Djibouti >>>>>> 7.0%
[5] Senegal >>>>>>6.9%
[6] Tanzania >>>>> 6.8%
[7] Sierra Leone>>>6.3%
[8] Burkina Faso>>>6.0%
[8] Benin Rep>>>>>6.0%
[9] Rwanda>>>>>>>5.9%
[10] Niger Rep>>>>>5.2%
[41] NIGERIA>>>>>>1.9%,
Note: Nigeria was Number [1] in 2012, 2013, 2014 and 2015. Also, Nigeria was the 3rd Fastest growing Economy in the World in 2014 now, the 88th. (Source: World Bank, IMF)

Exchange rate risk in Nigeria

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