The OutGoing Year 2024 Is A Year Of Stagflation-Aridity And Economic Precarity In Nigeria

By Abbati Bako,psc,bsis,UK,
Alumni-UniKent the UK’s European University

2024 is a Year of Stagflation, aridity and economic precarity in the Nigerian nation.
As the clock strikes midnight, ushering in the year 2025, Nigerians will bid farewell to a tumultuous 2024. The past 12 months have been etched in the country’s history as a period of unprecedented economic hardship, precarity, and stagnation as a result of the implementation of W/B and IMF economic reform as it did happen in most of the Global South.

The year 2024 was marked by soaring inflation, widespread unemployment, and security challenges that threatened the very fabric of Nigerian society. The economy stuttered, plagued by stagnant growth and a crippling lack of infrastructure, particularly in the power sector. It’s 12 times electricity failure in the year 2024 in Nigeria and measures must be taken to remedy the situation.

Otherwise, investors will not have interest to invest in Nigeria despite the fact that the country is a gravitational center of investment as number 6 most populous nation in the world. Foreign Direct Investment (FDR) is the most important in economic development.

*The Root Cause of Nigeria’s Economic Woes:

At the heart of Nigeria’s economic precarity lies a critical shortage of electricity. With an installed capacity of less than 13,000 MW, Nigeria’s power sector is woefully inadequate to meet the demands of its growing population and economic interplay. This pales in comparison to other nations, such as:

• Brazil, with an installed capacity of approximately 150,000 MW
• South Africa, boasting around 51,000 MW
• Saudi Arabia, with a impressive 80,000 MW

A snapshot of installed electricity capacity in various countries underscores Nigeria’s energy deficit:

*Africa

1. Nigeria: 13,000 MW (2020 est.)
2. South Africa: 51,000 MW (2020 est.)
3. Morocco: 10,000 MW (2020 est.)
4. Algeria: 20,000 MW (2020 est.)
5. Niger Republic: 200 MW (2020 est.)

*Asia

1. Chinese: 2,200,000 MW (2020 est.)
2. Indians: 380,000 MW (2020 est.)
3. Malaysians: 33,000 MW (2020 est.)
4. Indonesians: 60,000 MW (2020 est.)
5. Qatar: 9,000 MW (2020 est.)
6. UAE: 30,000 MW (2020 est.)

*Americas:

1. Brazil: 150,000 MW (2020 est.)
2. Mexico: 70,000 MW (2020 est.)

*Middle East

1. Saudi Arabia: 80,000 MW (2020 est.)

These figures, sourced from reputable organizations such as the International Energy Agency (IEA), the United States Energy Information, Administration (EIA), and the World Bank, highlight the glaring disparity in electricity generation capacity between Nigeria and its peers.

As Nigeria ushers in the new year, it is imperative that policy makers and stakeholders should prioritize investments in the power sector to address the nation’s energy deficit. Only through a concerted effort to improve electricity generation and distribution can Nigeria hope to break free from the shackles of stagflation and embark on a path of sustainable economic growth and development.

References:

1. International Energy Agency (IEA). (2020). Energy Access.
2. United States Energy Information Administration (EIA). (2020). International Energy Statistics.
3. World Bank. (2020). Energy Overview.

*The root cause of economic aridity, precarity and stagflation

To be continued, Insha’Allah.

Dr. Abbati Bako is a Political Strategy and Communications Consultant with the IPRC Nigeria. He also serves as the Treasurer of the Kano Chamber of Commerce and PhD,. Scholar@Skyline University Kano,Nigeria
abbatibako@gmail.com
+2349077889959