Nigeria’s Power Sector Hindered by Reliance on Imports, Says Minister

The Minister of Power, Adebayo Adelabu, has highlighted the challenges posed by Nigeria’s dependence on imported equipment for the power sector, describing it as a significant setback. During a recent visit to Splendor Electric Nigeria Limited, a local producer of electrical porcelain products in Odogbolu, Ogun State, Adelabu stressed the importance of supporting domestic manufacturers to reduce reliance on imports.

While touring the factory, which manufactures electric pole insulators using locally sourced clays, Adelabu noted that the Federal Government is committed to aiding local producers. He identified the infrastructure deficit as a major obstacle to the power sector’s progress.

“The infrastructure gap across the power sector, particularly in transmission and distribution, is a major hurdle. It has been quite frustrating to achieve rapid enhancement and prompt maintenance of infrastructure because we depend heavily on imports. The difficulties in sourcing foreign exchange and the long lead times for imported items have significantly hampered effective maintenance,” Adelabu stated.

The minister reiterated the government’s dedication to bolstering local manufacturing to stimulate economic growth. He assured Splendor Electric of support, urging contractors and agencies like the Transmission Company of Nigeria to patronise locally produced goods. Adelabu also encouraged the company to approach the ministry for assistance and to ensure their products compete favourably with imports in terms of quality.

Mr. Weitei Guo, Managing Director of Splendor Electric, revealed that the company, which began operations in Nigeria last year, is the sole manufacturer of electrical porcelain insulators in Africa.

“As a technology leader and manufacturer of electrical porcelain insulators for overhead distribution and transmission lines, our company occupies 230,000 square metres and we have full sets of technical facilities for various types of porcelain insulators. The total investment will reach $50m, and we have just completed the first phase,” Guo explained.

Guo detailed that Splendor Electric specializes in both high and low-voltage porcelain insulators and metal fittings. The company aims to provide high-quality products to global markets, including other African countries, Europe, the Middle East, and the Americas.

“We are dedicated to the development of Nigeria’s power industry and are committed to fostering mutual learning and strategic partnerships between China and Nigeria,” Guo stated.

A recent World Bank report underscores the urgency of improving Nigeria’s power infrastructure, revealing that the country has the world’s largest absolute electricity access deficit, with 45 percent of the population—about 90 million people—lacking access to the electricity grid. The report also highlights significant disparities between urban areas, where 84 percent of the population has access to electricity, and rural areas, where only 26 percent are connected.

The collaboration between the Federal Government and local manufacturers like Splendor Electric is seen as a critical step towards addressing these challenges and achieving a more stable and self-sufficient power sector in Nigeria.