Energy Crisis in Nigeria: A Golden Way for Building Other African Economies with Particular Reference to Ghana in the 21st Century

Abstract

Structurally, functional infrastructural facilities are one of the stimuli for the development of any nation. For long, Nigerian has been experiencing energy crisis, with negative impact on the national economy. Power is perhaps the infrastructural axis in which economy revolves. Towards the beginning of this century, the power situation in Nigeria deteriorated each passing day forcing productive industries to generate private power through the use of generators. The production cost become too burdensome to bear and often times resorted to huge losses. This was as a result of persistent power outages, closure of businesses etc. Some African countries especially Ghana then, and even now, are doing well in the power sector. In this connection many industries in Nigeria have since relocated and some are planning to relocate to Ghana and elsewhere. Besides power, it is also contended that other environmental factors such as security, good tariff regime are favourable to business development and growth in Ghana. The paper therefore examines the impact of the power crisis in Nigeria and the benefits the Ghanaians are deriving from this crisis. It concludes that Nigerians are suffering economically and socially. The movement of key industries to Ghana have increased the unemployment ratio in Nigeria, reduced the level of taxes to states; these and others have generated social and insecurity problems and aggravated underdevelopment. Ghanaian economy is receiving a boost and potentials for growth at the expense of Nigeria caused by ineptitude of Nigerian leaders.

LWATI: A Journal of Contemporary Research, 8(1), 232-240, 2011