Energy costs and reliability threaten industrial growth in Ghana and Nigeria

Industrial leaders in Ghana and Nigeria are warning that high electricity costs and unreliable energy supplies are significant barriers to economic growth and manufacturing competitiveness.

In Ghana, the Association of Ghana Industries (AGI) stated that energy reliability is critical for businesses attempting to leverage the African Continental Free Trade Area (AfCFTA). AGI President Pharm. Dr Kofi Nsiah-Poku noted that the cost of electricity determines whether locally produced goods can compete with imports or succeed in regional markets. High power costs directly impact production expenses in sectors such as cement, steel, chemicals, and agro-processing.

Similarly, in Nigeria, stakeholders at the Harvard Business School Association of Nigeria (HBSAN) highlighted the need to better convert abundant gas resources into reliable power. Mayowa Afe, general secretary of HBSAN, emphasized that while the country has significant gas potential, a lack of infrastructure and poor coordination between government agencies hinder the development of cheaper electricity. Experts noted that while regulatory frameworks like the Petroleum Industry Act exist, implementation remains a primary challenge for industrial development.