Rewane Urges Urgent Energy Reform \u2022 Channels Television
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Economic expert and Managing Director of Financial Derivatives Company Ltd, Bismarck Rewane, has stressed the urgent need for Nigeria to resolve its lingering power supply issues, warning that continued outages pose a significant threat to national economic growth.<\/strong><\/p>\n Speaking on <\/span>Channels Television\u2019s Business Morning<\/span><\/i> on Tuesday, Rewane emphasised the impact of electricity instability on Nigeria\u2019s Gross Domestic Product (GDP), particularly in key economic hubs like Lagos and Ogun states.<\/span><\/p>\n \u201cThere is the opportunity cost, and there is a cost. The cost is that Lagos and Ogun states may constitute about 30% of Nigeria\u2019s GDP. So, if you\u2019re going to have one month of power outage, the impact is effectively one-twelfth of 30%\u2014which is significant,\u201d he said.<\/span><\/p>\n READ ALSO:<\/strong> [GDP] Happy Statistics, Unhappy Nigerians Isn\u2019t The Goal, Says Rewane<\/p>\n Rewane described Nigeria\u2019s power challenges as deeply rooted and multi-dimensional, citing issues such as cultural barriers, tariff imbalances, underinvestment, and debt forbearance within the sector.<\/span><\/p>\n \u201cYou cannot grow the economy with what we\u2019ve seen today without a broad power solution,\u201d he added.<\/span><\/p>\n \u201cIf there is a power outage in Nigeria, it must be resolved\u2014no question. You can\u2019t put a Band-Aid on it. It has to be done, and it has to be done now.\u201d<\/span><\/p>\n On economic performance, Rewane noted that Nigeria\u2019s GDP currently stands at approximately $2.45 billion, with a 3.13% growth recorded in the first quarter of the year.<\/span><\/p>\n He also observed shifts within the economy, noting that manufacturing\u2019s contribution has declined, while agriculture has grown in visibility, and the service sector remains the primary driver of economic activity.<\/span><\/p>\n Turning to oil refining, Rewane explained that the global refining industry is increasingly hub-centered, and that refineries operate on high volume but low margins.<\/span><\/p>\n \u201cRefining is a high-volume, low-margin business,\u201d he stated. \u201cIt\u2019s important that people realise the scale and technical expertise required. Operational efficiency matters. The margin is the difference between your average revenue and your average cost. Profit is the reality.\u201d<\/span><\/p>\n<\/p><\/div>\n