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Daniel Adaji
Data from the International Trade Centre (ITC) has revealed that Nigeria spent $253m on generator imports while exporting electricity worth $112m. This paradox highlights the country’s ongoing struggles with power supply and its dependence on alternative energy sources.
Nigeria’s reliance on generators has made it a lucrative market for global suppliers. The ITC report obtained on Friday showed that key exporters of generating sets to Nigeria include China at $194m, the United States at $13m, Germany at $16m, Finland at $14m, Austria at $6.7m, the United Kingdom at $1.2m, India at $1m, the UAE at $961,000, Italy at $6,300, Turkey at $772,000, Belgium at $3.4m, Japan at $416,000, Norway at $213,000, the Netherlands at $365,000, Poland at $122,000, Singapore at $133,000, Thailand at $133,000, and Canada at $42,000.
Ironically, Nigeria continues to export electricity despite facing chronic power shortages domestically.
The ITC data reveals that Nigeria’s electricity exports to its neighboring countries—Benin and Niger—amounted to $112m, with an estimated potential of $160m. This indicates an unrealized export potential of $48m.
Nigeria exported $66m worth of electricity to Benin, with a potential export value of $82m, leaving an unrealized potential of $16m. Electricity exports to Niger stood at $46m, with the potential for $51m, leaving an unrealized potential of $4.1m.
The ITC further noted that the products with the greatest export potential from Nigeria to Benin include electrical energy, urea, and bars and rods of iron/steel. Meanwhile, exports to Niger include electrical energy, Portland cement, and food-related products like soups and broths.
The ITC data also highlighted other key import and export trends for Nigeria. Nigeria imported $1.2bn worth of vehicles for transporting less than 10 persons, from a market potential of $1.7bn, leaving an unrealized gap of $1bn. Nigeria imported $1.6bn worth of wheat and meslin, with an additional unrealized potential of $780m from the $2.2bn market potential.
The data underscores Nigeria’s ongoing energy challenges, where massive spending on generators coexists with substantial electricity exports. While the country continues to rely on alternative power solutions, there remains significant room to harness local electricity production and reduce generator dependency.
Analysts argue that bridging this gap could not only improve domestic energy stability but also optimize Nigeria’s trade potential in the global market.