Energy and Development Economics Expert, Odatse Hails Alia for Benue State Electricity Law, Say it Will Power New Economic Revolution

 

As Rivers was built on oil and Delta on gas, experts say electricity could become the catalyst that transforms Benue from Nigeria’s food basket into an industrial powerhouse.

By Onwe Wisdom, Pan Afric Reporters

 

The passage of the Benue State Electricity Law by Governor Hyacinth Alia may well be remembered as one of the most consequential economic decisions in the state’s history. Beyond legislation, the new law represents a bold attempt to tackle one of the greatest obstacles to Benue’s development — inadequate electricity supply.

For decades, Benue State has possessed nearly everything required for economic prosperity: fertile agricultural land, abundant water resources, rich mineral deposits, a large and youthful population, and a strategic location at the heart of Nigeria. Yet, despite these advantages, industrialization has remained elusive, largely because of a chronic energy deficit.

Energy and development economics expert, Dr. Odatse-Peters, in his feature states that the newly enacted law could provide the missing link between Benue’s vast natural resources and sustainable economic growth.

 

“Benue State has huge industrial potential and needs to solve its energy-related shortfall. The passage of the Electricity Law is timely and bold. If properly implemented, it can unlock the economic potential needed for an industrial revolution in the state,” he said.

Benue’s Untapped Economic Potential

Known as the “Food Basket of the Nation,” Benue State occupies approximately 34,059 square kilometres, making it the 11th largest state in Nigeria. Its vast landmass, coupled with fertile plains and favourable climatic conditions, has made agriculture the backbone of the state’s economy.

With an estimated population of 6.14 million people and an annual growth rate of 2.6 per cent, Benue is also one of Nigeria’s most populous states. More importantly, over one-third of its population falls within the economically productive age bracket of 25 to 54 years.

Agriculture remains the dominant occupation, engaging between 60 and 80 per cent of residents. The state produces a wide range of food crops, including yam, cassava, rice, maize, sorghum, millet and sweet potatoes, alongside cash crops such as soybeans, sesame seeds, groundnuts, palm oil, citrus fruits and mangoes.

The presence of the River Benue and River Katsina-Ala further strengthens the state’s agricultural potential through irrigation and fishing opportunities.

However, experts argue that agriculture alone cannot fully unlock Benue’s economic future without adequate power infrastructure.

A State Sitting on a Mineral Goldmine

Beyond agriculture, Benue possesses significant deposits of solid minerals, including limestone, gypsum, barytes, kaolin, coal, salt, iron ore, lead, zinc and gemstones.

These resources remain largely untapped despite their enormous commercial value.

According to Dr. Odatse-Peters, electricity is the critical enabler that can transform these dormant assets into engines of economic growth.

“The Food Basket of the Nation sits atop a goldmine of untapped solid minerals. These resources can only be fully activated through reliable electricity supply, which is why energy reform is central to Benue’s industrial future.”

The Cost of Energy Deficiency

The consequences of inadequate power supply have been evident across the state’s economy.

Official statistics released by the National Bureau of Statistics in the fourth quarter of 2020 placed Benue’s combined unemployment and underemployment rate at 48.5 per cent.

The collapse of major industries such as Benue Breweries, Taraku Mills, Benue Fruit Juice Company and Benue Burnt Bricks contributed significantly to the loss of jobs and economic opportunities.

While the Alia administration has initiated efforts to revive some of these industries and attract new investments, sustainable industrial growth will depend heavily on access to reliable electricity.

Understanding Benue’s Power Gap

Experts estimate that Benue currently requires between 500 and 700 megawatts of electricity daily to adequately serve households and businesses.

Yet the state reportedly receives only about 50 to 100 megawatts from the national grid through the Jos Electricity Distribution Company (JED).

For meaningful industrialization, power demand is projected to rise to between 900 and 1,200 megawatts daily, while full electrification would require even more.

This enormous supply deficit explains why many investors remain reluctant to establish manufacturing operations in the state.

“A critical look at the statistics reveals a massive gap between electricity demand and supply. Bridging that gap is fundamental to the industrial take-off of Benue State,” Dr. Odatse-Peters noted.

Why Electricity Matters

Reliable electricity would fundamentally reshape nearly every sector of Benue’s economy.

Agriculture would transition from subsistence farming to large-scale agribusiness through irrigation systems, mechanization, cold storage facilities and agro-processing plants.

Manufacturing activities would expand, while small and medium-scale enterprises would gain the stability required for growth. The mining sector would become more viable, and technology-driven businesses would emerge.

Healthcare services would improve through uninterrupted power supply to hospitals and clinics, while schools would benefit from enhanced learning environments.

Security could also improve, as better street lighting and economic opportunities often contribute to lower crime rates.

Additionally, improved rural electrification would reduce migration pressures on urban centres, allowing economic opportunities to flourish closer to rural communities.

Building the Financial Foundation for Industrial Growth

Beyond direct economic benefits, improved electricity supply could significantly strengthen government finances.

An expanded industrial base would increase tax revenues, boost mining royalties and reduce public spending associated with unemployment and conflict-related challenges.

For Benue, which continues to grapple with humanitarian pressures and internally displaced persons camps, economic expansion driven by reliable power could create long-term fiscal stability.

Industry observers believe this would ultimately contribute to higher Gross Domestic Product (GDP) and improved purchasing power across the state.

The Opportunities Beyond the National Grid

One of the most significant aspects of the new electricity law is that it opens the door for alternative power generation beyond the national grid.

Benue possesses several untapped renewable energy opportunities.

The Wurukum hydropower facility on the River Benue, originally constructed in the 1980s with an estimated capacity of 8 megawatts, remains largely underutilized.

Similarly, studies suggest that the Katsina-Ala River corridor and potential Kashimbila extensions could generate between 10 and 30 megawatts of additional electricity.

The state also has considerable potential in biomass, biogas and solar energy generation, especially given its large agricultural output.

A New Era Under the Electricity Act

The enactment of the federal Electricity Act 2023 created an opportunity for states to develop their own electricity markets, establish generation facilities and regulate mini-grid operations.

The Benue State Electricity Law aligns with these reforms and could stimulate investment in solar mini-grids, small hydroelectric projects and, potentially, gas-fired power plants if future gas infrastructure reaches Makurdi.

Agricultural waste from rice mills, cassava processing plants and other agro-industries could also be harnessed for biomass energy generation.

These opportunities provide a pathway toward energy security while reducing dependence on the overstretched national grid.

The Road Ahead

The success of the Benue State Electricity Law will ultimately depend on implementation.

Experts stress the need for competent professionals, investor-friendly regulations, customer protection mechanisms and efficient metering systems to minimize Aggregate Technical, Commercial and Collection (ATC&C) losses.

With industrial clusters planned across the state’s three senatorial districts, the law has the potential to become a cornerstone of Benue’s economic transformation.

For many observers, the legislation represents more than an energy reform; it is a strategic economic blueprint designed to unlock the state’s dormant potential.

As Benue seeks to redefine its future, one message stands out clearly:

“As oil built Rivers State and gas is developing Delta State, electricity can industrialize Benue State.”

The challenge now is turning that vision into reality. Odatse said.