Nigeria loses an estimated $26 billion yearly to power failures, according to the latest Africa Trade Barometer report which said the cost excludes spending on off-grid generators.

“Economic losses arising from Nigeria’s electricity shortages are estimated to be USD 26 billion annually, without accounting for spending on fuel for off-grid generators, which is estimated to be a further USD 22 billion,” the report by Standard Bank said.

It said businesses spend about $22 billion annually on off-grid fuel to offset the impact of power shortages. This further pushes operational costs.

“In Nigeria, surveyed businesses must contend with a national grid that frequently collapses as it fails to meet a daily peak demand which is nearly four times its generation capacity,” the report reads.

It identified electricity supply as a major challenge to business operations in Nigeria and across the African continent.

“Across the 10 African markets, power supply infrastructure remains the most severe obstacle to surveyed businesses’ operations,” the Standard Bank read.

“It is reported as one of the most poorly perceived infrastructural attributes as well as the one presenting the most severe obstacle to business operations,” the report added.

“Blackouts cause a downtime of production, risk the quality of goods that require controlled environments, impact water supply, and affect telecommunications infrastructure which businesses may rely on for payments. The result is reduced sales and income.”

The report comes amid the incessant national grid collapse in recent weeks. Just this month, there was a blackout in many parts of the country after the grid collapsed thrice in seven days.

According to the National Electricity Regulatory Commission (NERC), the development was due to an explosion of a transformer in one of the transmission stations.

“Initial reports on the grid disturbance that occurred this morning indicate that today’s outage was triggered by an explosion of a current transformer at the Jebba transmission station at 0815hrs and an associated cascade of power plants shut down arising from the loss of load,” NERC said.

The House of Representatives said it was going to probe the incessant national grid collapse.

Economic and Financial Crimes Commission (EFCC) has raised the alarm over the dangers of cybercrime, saying Nigeria lost over $500 million to it in 2022.

At a National Cybercrime Summit organised by the agency on Tuesday, the chairman of the commission Ola Olukoyede said projections showed that the impact of cybercrime may reach more “staggering” levels in the coming years.

“Projections by multiple sources show that the global loss to cybercrimes may reach a staggering $10.5 trillion,” the EFCC chief said in Abuja.

“As a matter of fact, the research I did earlier this year confirmed that cybercrime has become the third largest GDP in the world with approximately 2,328 cases occurring daily.

“The implication of all this is that if left unchecked, cybercrimes portend grave dangers to the entire world. Bringing it to Nigeria, in 2022 alone, Nigeria lost over $500 million to cybercrime.”

The ‘Stalking’ Realities

He said cybercrime accounts for a significant percent of the convictions recorded by the agency since his one year of resuming as the chairman of the EFCC.

“These are the realities stalking the Commission’s fight against these crimes,” he said. “Cybercrime accounts for a significant percentage of the 3,455 convictions recorded by EFCC in my one year as the Executive Chairman of EFCC.”

But Olukoyede said there are plans to rechannel the energies of young people who are mostly perpetrators of cybercrime.

“First, there is an alternative of creative and innovative development of socially beneficial applications that can deliver better prospects than internet fraud,” he told the gathering.

“Today’s event is tailored towards exposing young Nigerians with strong tech skills to the opportunities that are found in various industries and sectors for legitimate wealth, creation, and honest livelihood.

“These opportunities can be found in the creative industry, tech ecosystem, financial services sector, medical services, and even law enforcement.”

According to him, the fight against cybercrime is a collective one that cannot be left for the EFCC alone.

Economic and Financial Crimes Commission (EFCC) has said that it is establishing a 24-hour Cybercrime Rapid Response Desk, which will receive information on cyber-crimes from the public and respond without delay.

The response desk has both local and international phone numbers for contacting the EFCC.

The unveiling was one of the highlights of the National Cybercrime Summit, which was organised by the EFCC with support from the Rule of Law and Anti-Corruption programme, the European Union, and the International Institute for Democracy and Electoral Assistance.

Oluremi Tinubu, Nigeria’s first lady, launched the initiative at the Presidential Villa in Abuja, with the theme: “Alternatives to cyber-crime: optimising cyber skills for national development.”

She noted that the theme of the summit resonated with the current challenges cyber crime posed to Nigeria and the globe.

“Cyber-crime is not a crime against individuals and businesses. It is an assault on our collective integrity, economic stability and the future of our youth,” Tinubu said.

“It is therefore crucial that we address these challenges head on and explore not only the harmful consequences of cyber-crimes but also the sustainable alternatives that can redirect our youths towards productive and positive endeavours.”

Tinubu said with young people accounting for more than 60 percent of Nigeria’s population, the involvement of youths in cyber-crime was a threat to the nation’s quest for economic stability.

Known locally as the “Yahoo Boys”, tertiary graduates struggling to secure formal jobs are reportedly the main perpetrators of these crimes.

The Nigeria Communications Commission (NCC) reports that the West African country loses an estimated $500 million per annum to cyber criminals.

Ola Olukoyede, executive chairman of the EFCC, said: “The menace of cyber-crimes, like most economic and financial crimes, is a burning challenge that we cannot deny, ignore or wish away.”