Renowned economist and Managing Director of Financial Derivatives Company Ltd, Bismarck Rewane, has raised alarm over Nigeria’s persistent power supply crisis, warning that it poses a serious threat to the country’s economic growth.

 

Speaking on Channels Television’s ‘Business Morning’ on Tuesday, Rewane highlighted the direct link between electricity instability and Gross Domestic Product (GDP), especially in critical economic zones such as Lagos and Ogun States.

 

“Lagos and Ogun states contribute about 30% of Nigeria’s GDP. So, if there’s a one-month power outage, you’re effectively losing one-twelfth of that 30%—and that is highly significant,” he explained.

 

 

 

He described the nation’s power problems as deep-rooted and multi-layered, attributing them to tariff imbalances, cultural barriers, underinvestment, and unresolved sectoral debt.

 

“You cannot grow the economy with the current state of the power sector,” Rewane said. “This isn’t something a Band-Aid can fix—it must be addressed head-on, and urgently.”

 

 

 

Commenting on Nigeria’s overall economic trajectory, Rewane revealed that the GDP stands at approximately $2.45 billion, with a growth rate of 3.13% in Q1 2025.

 

He also noted ongoing structural shifts in the economy, observing a decline in manufacturing, increased prominence of agriculture, and sustained dominance of the services sector.

 

Touching on the refining sector, Rewane pointed out that the global refining industry now revolves around large-volume, low-margin hubs, implying that Nigeria’s refining aspirations must be grounded in economic and operational efficiency.