The general closure of private firms has become common as a result of the epileptic consistency of two basic components: knowledge of the official foreign exchange rates from banks and electricity supply.
The President of the Kaduna Chamber of Commerce, Mines, Agriculture and Industry; Abdul Alimi-Bello said manufacturers within his domain lost N1.46 trillion over the Forex problem and loss of power.
In Nigeria’s Southern region, citizens protested over the electricity tariff in February of this year, and electricity has since become a seasonal commodity. Lagos State, which serves as the economic hub of the nation, suffered greatly from the varying rate of supply.
The large number of local manufacturers and firms coming up with alternative revenue to boost the Nigerian economy were discouraged, and have since closed. Some manufacturers complained about lack of access to official foreign exchange rates from banks, rates needed to have a better understanding in how to budget for the purchase of raw materials abroad. A report also cited the inability to drive on amidst poor electricity, many firms could not afford the cost of fuel in generating electricity for themselves.
The Eko Electricity Distribution Company (EED) has said the shortage in electricity supply is due to outages at the Egbin Thermal Power Station. Egbin is the largest power generating station in Nigeria. According to the company’s Head of Communications, Godwin Idemudia, “Egbin’s current outage which supplies Lagos Island, Lekki, Victoria Island Ajah, Ibeju, and some other places developed some fault which needs time and steady action to rectify”.