THE MAKING OF AN INDUSTRIAL BENUE STATE: THE ENERGY SECTOR REFORM BILL

Pan Afric Reporters

Benue  State, christened “The Food Basket of the Nation,” covers a landmass of 34,059 km² (13,150 sq mi) and is the 11th largest state in Nigeria. This is a fundamental natural resource endowment.

As of 2022, Benue State has an estimated population of 6.14 million people, with a projected annual growth rate of 2.6%. Demographic analysis shows that the active workforce, aged 25–54 years, stands at 33.2%. This makes Benue the 7th most populous state in Nigeria. This population size is an advantage for market demand and supply. Furthermore, the population distribution shows that 81.9% are rural dwellers, while 18.1% are urban residents.

The predominant economic activity in which Benue State has a comparative advantage in Nigeria is agriculture. Therefore, 60–80% of the people are engaged in agriculture, growing:
Food crops: Yam, cassava, rice, maize, sorghum, millet, sweet potato, etc.
Cash crops: Soybeans, sesame/benniseed, groundnuts, palm oil, citrus, mangoes, etc.
These agricultural activities are supported by vast arable land and fertile plains, which receive 100–200 mm of rain suitable for rain-fed crops between April and October annually. The state also has the River Benue and River Katsina-Ala, which could support irrigation and fishing.

“The Food Basket of the Nation” sits atop a goldmine of untapped solid mineral deposits such as limestone, gypsum, barytes, kaolin, coal, salt, gemstones, lead, zinc, iron ore, etc. These are all natural resources whose operations can be activated by energy (electricity), thereby unlocking the Benue State industrial revolution under H.E. Dr. Hyacinth Alia, the Executive Governor of Benue State.

Based on the last known statistics released by the NBS (National Bureau of Statistics) in Q4 2020, Benue State had a combined unemployment and underemployment rate of 48.5% due to collapsed industries such as Benue Breweries, Taraku Mills, Benue Fruit Juice, Benue Burnt Bricks, etc. However, with the current efforts of the Benue State Government under H.E. Dr. Hyacinth Alia to revive some of these moribund or collapsed industries and introduce new ones, I expect the combined unemployment statistics for Benue State to improve.

Benue  State needs 500–700 MW daily to service its population and businesses. Unfortunately, it only receives 50–100 MW from the national grid through the Jos Electricity Distribution Company (JEDC). For an industrial take-off, the state needs 900–1,200 MW of electricity daily. And for full electrification, it requires more than 1,000 MW daily. A critical look at these simple statistics shows the electricity demand and supply shortfall. Juxtaposing it with Benue’s economic potential and reality, H.E. Dr. Hyacinth Alia should be commended for passing the Benue State Electricity Law.

Adequate electricity will trigger the following: It will move agriculture from subsistence to agribusiness because it will stimulate irrigation, cold storage, processing, and mechanization. Also, it will reduce unemployment and underemployment as manufacturing, SMEs, mining, and tech/digital businesses will be optimized. Furthermore, health and educational services will be enhanced. Security will also benefit, as lighting reduces crime. There is no gainsaying that it will reduce rural-urban migration, thereby eliminating its associated disadvantages.

One of the fundamental economic benefits of addressing Benue State’s power needs, given all other economic variables working in its favor, is building the financial capital required for the strategic planning of the Benue State industrial revolution. Therefore, getting the energy matrix right will increase state revenue through growth in the tax base, mining royalties, and reduced conflict spending — investment in many IDP camps and wasted human resources at these camps. This will grow Benue’s GDP and PPP.

Benue State has the potential to address its electricity shortfall from the national grid. It can achieve this through off-grid power:
Small hydropower untapped. Potential examples include the Wurukum 8 MW plant on the River Benue, built in the 1980s and mostly non-functional. The Katsina-Ala River sites, which studies show have the potential to generate 10–30 MW at the Kashimbila extension.
Furthermore, biomass/biogas and solar.

Based on the Electricity Act 2023, which allows Benue State to build its own plants and regulate mini-grids, with the passage of this law in Benue State, it is expected that more solar mini-grids, small hydroelectric plants, and gas plants will be built if the AKK pipeline spur hits Makurdi, not to mention biomass from rice mills and cassava plants.

Given the planned industrial clusters in the three Senatorial Districts by the Benue State Government, the passage of the Benue State Electricity Law on 08/06/2026 by H.E. Dr. Hyacinth Alia, the Executive Governor of Benue State, can be said to be profound. If managed by core sector professionals with inter-departmental experience, it will unlock the economic potential and derivatives needed for an industrial revolution in Benue State. What is available from the national grid to JEDC and allocated to Benue State is grossly inadequate. Benue State has huge industrial potential and needs to solve its energy-related shortfall. This is timely and bold! I just hope the framework is able to attract investors, protect their investments, and also protect customers. All factors that will reduce ATC&C losses must be considered in the framework, including smart metering parameters.

Dr. Odatse-Peters, FIPESA, MICMC, MNES, is an energy and development economics expert — a core professional with over two decades of deliverable experience in the power distribution sector, with departmental experience in technical operations, finance and accounts, supply chain management, project and franchising, and business management. Odatse-Peters, PhD, co-authored “Impact of Electricity Consumption on Economic Growth in Nigeria,” published in the international journal _Bingham Journal of Economics and Allied Studies (BJEAS)_, Vol. 5, No. 2, December 2021. Dr. Odatse-Peters P. O. is from Ado Local Government, Benue State.

NOTE: AS OIL BUILT RIVERS STATE, AND GAS IS DEVELOPING DELTA STATE, ELECTRICITY WOULD INDUSTRIALIZE BENUE STATE.

Tuesday, 09/06/2026