Nigeria’s low electricity generation and consumption are dragging Nigeria’s growth and the per capita incomes of citizens, keeping millions in poverty.
According to BusinessDay, Nigeria’s electricity consumption per capita lags peers such as Brazil, Indonesia, Mexico, South Africa, and Turkey.
The nation has an annual electricity consumption of just 181.63 kWh per capita, the lowest among the countries compared. In contrast, South Africa consumes 3,779.72 kWh; Brazil, 3,295.31 kWh; and Turkey, 3,726.45 kWh.
The data show a strong correlation between electricity consumption and per capita GDP. Nigeria, with the lowest electricity consumption, has a per capita GDP of $1,596.64, while countries with higher consumption—such as Mexico (2,750.68 kWh) and Brazil (3,295.31 kWh)—have significantly higher per capita GDPs of $13,790.02 and $10,294.87, respectively.
Analysts say this reinforces the argument that inadequate electricity supply is a major constraint on Nigeria’s economic growth, limiting industrial output, business expansion, and overall productivity.
“The positive relationship between energy and economic growth is clear: income and energy consumption are tightly correlated on every continent and across every time period for which data exists,” said Todd Moss, executive director, Energy for Growth Hub, and Jacob Kincer, former senior policy analyst and programme coordinator of the same organisation in a research entitled, ‘How does energy impact economic growth? An overview of the evidence.’
“Nowhere in the world is there a wealthy country that consumes only a little energy, nor a poor country that consumes a lot,” they added.
One of the clearest examples of electricity’s role in industrial growth is POSCO, South Korea’s steel giant. Located in Pohang, a once-sleepy agricultural town on the country’s southeastern coast, POSCO has grown into one of the world’s most profitable steel producers. Its transformation was underpinned by strategic planning, state support, and relentless efficiency, but beneath these factors lay a fundamental enabler—electricity.
