Business

Nigerian manufacturers spent N246.4bn in 2 years to generate own electricity

Nigeria's power transmission capacity increases to 8000MW —TCN

The Manufacturers Association of Nigeria (MAN) has said that manufacturers in the country spent a total of N246.38 billion to generate their own electricity between 2016 and 2017.

This is contained in a data compiled by the association.

The data showed that the operators spent N129 billion in 2016 and N117.38 billion in 2017 on private power generation.

The data also showed that manufacturers spent another N43 billion on private power generation in the first half of 2018.

MAN, in its review of the manufacturing sector in 2018, said the year was manufacturing friendly because the cost of generating electricity constituted 40 percent of the cost of production.

It stated: “The challenge of inadequate electricity supply persisted in 2018, worsened by skyrocketing electricity price. Inadequate electricity supply remains a major driver of the cost of production.

“Our survey finding shows a slight improvement in electricity generation and distribution with the challenges coming from obsolete electricity infrastructure, weak transmission and distribution networks.”

MAN however commended the Federal Government for efforts aimed at utilising stranded 2,000 megawatts of electricity through the Eligible Customer initiatives introduced last year.

Read also: Manufacturing sector to increase contribution to national GDP

The association noted, however, that the uptake of the stranded electricity was slow, owing to the conditions established for its access.

The government had said that for customers to be eligible to access the stranded 2,000 megawatts, they should not owe any of the distribution companies.

This led to a legal tussle between the association and some distribution companies, over poor management of the Multi-Year Tariff Orders, which led to the claim by the DISCOs that MAN members owed them.

The manufacturers therefore called on government not to allow any increase in electricity tariff in the face of inadequate supply, while also asking for support for stakeholders in the electricity value chain to improve generation, transmission and distribution.

MAN urged the government to intervene in the impasse between MAN, DISCOS and the Nigerian Electricity Regulatory Commission and resolve associated issues.

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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