Africa’s richest man and President of the Dangote Group, Aliko Dangote, has called on the Nigerian government to take necessary steps towards addressing longstanding power sector challenges, warning that the country’s quest for industrial development will remain a mirage with persisting unstable electricity supply.
Speaking at the launch of the Nigeria Industrial Policy (NIP) 2025 in Abuja on Tuesday, Dangote urged the government to convene an urgent national forum dedicated solely to tackling the electricity crisis.
Addressing Vice President Kashim Shettima and other top government officials present at the event, Dangote emphasised that a stable electricity supply is the bedrock of any industrial society.
He argued that policy incentives and land allocations are meaningless if factories cannot operate due to an unreliable grid.
“One of the things that I want to advise Your Excellency, Mr. Vice President, is to call a national forum where we will have a one- or two-day retreat and resolve the issues of power. Because without power, there is no way in any country you can create growth or you can create jobs. So, power means growth. No power, no growth,” Dangote stated.
Soaring Energy Costs for Manufacturers
The industrialist painted a grim picture of the current operating reality for manufacturers, who are forced to bear the enormous cost of self-generation of power. He noted that many companies spend more on energy than on core production, a situation he described as economically nonsensical.
“When you look at some factories, you spend more money generating power,” he said. “It means you have to have power, you set up your own power plant, then you also set up another standby. That doesn’t make sense.”
In a wry admission of the perverse incentive, he added, “I would love to sell more diesel, but that’s not the right way.”
READ ALSO:
- Dangote Overtakes Importers, Supplies 62% of Nigeria’s Petrol Market
- Calls for Decentralised Power System Intensify as Grid Failure Persists
- GenCos Debts: Geregu, Niger Delta Power, Others Reach Settlement Agreement as FG Issues ₦501bn Bond
- Dangote Refinery Full Capacity Will Push Naira Below ₦1,000/$1 – Otedola
Dangote’s remarks come on the heels of incessant power disruption across the country. In January, the country experienced two cases of grid collapse, which caused nationwide power outages, affecting individual households and businesses across the country. Also, within the last five days, there has epileptic power supply across the country following the shutdown of a gas plant for maintenance, which affected generating plants that depended on it for gas supply.
While Nigeria has a total installed generation capacity of 13,000 megawatts (MW), what is distributed nationwide is between 4,000MW and 5,000MW in a nation with over 200 million population.
Industry experts have repeatedly emphasised the need for a stable power supply for industrial growth in the country.
Dangote stressed the need for urgent reforms in the power sector.
Protection for Local Industries
Beyond the power deficit, Dangote stressed that the new industrial policy must be backed by strong protection for local industries against unfair foreign competition. He warned that without protective tariffs and anti-dumping measures, local investors would be unable to compete with imports from countries with cheaper capital and stable infrastructure.
“Even if you give us money with zero interest, you give us free land, what’s the power? If there is no protection, there is no way any industry will thrive here,” he warned. “Importation of anything is importation of poverty and exporting of jobs.”
He argued that Nigeria, with its large market and strategic position in Africa, should be able to manufacture what it consumes and serve as a production hub for the continent rather than a dumping ground for finished goods.
Dangote Predicts Naira could reach ₦1,000 per Dollar this year
Dangote commended the Federal Government for its recent economic reforms, which he said have begun to yield results.
The billionaire industrialist expressed optimism that if import dependency is curtailed and local production expands, the naira could strengthen significantly, potentially trading between ₦1,100 and ₦1,000 per dollar by the end of the year
“Today, a dollar is around ₦1,340. Mr. Vice President, I can assure you, with what I know, blocking all this importation and co, Naira at the end of this year, will be as low as ₦1,100, if we are lucky, but the only thing is for maybe the government to stop the Naira from getting stronger, so that they will keep collecting more Naira.”
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
