Business Hilights

Tracking Nigeria's Headline Business News Online

power transmission lines

MAN insists energy cost still on the high side as FG claims rise in supplies

Ad 2
Ad 3

Whereas latest statistics from the Manufacturers Association of Nigeria (MAN), especially expenditure on alternative energy sources in the sector stood at N43.19 billion H1 2018, the federal Government has continued to claim that power supplies are on the increase nationwide.
The H1 2018 figure from MAN stands for 34.6 per cent and 15.9 per cent lower than N66.03 billion recorded in H1 2017, and N51.35 billion of the preceding half respectively.
Manufacturers argued that the decline in expenditure on alternative energy source may be ascribed to low utilisation of energy in the period due to general sluggishness of economic activities and slight improvement in electricity supply from the national grid.
However, to correct the anomalies, Chairman, Manufacturers Power Development Company Limited, a subsidiary of MAN, Ibrahim Usman, urged the Federal Government to ensure the operability of Independent Power Producers (IPP) for On/Off grid power generation, and the Micro Grid Initiative.
He further explained that the poor power supply in the country was seriously affecting the manufacturing sector, hence the partnership with independent power developers to develop small capacity IPPs in its industrial clusters.
Besides, MAN came up with the view that government should re-classify the manufacturing sector into strategic gas users from the current commercial gas users’ classification to aid affordable access to alternative energy.
Additional statistics also revealed that estimated cumulative manufacturing investment from 2013 to 2017 was N4.12 trillion based on data generated from surveys conducted by MAN over the period.
MAN disclosed further that “In the first half of 2018, manufacturing investment stood at N305.56 billion, representing N23.72 billion (7.2 per cent) decline and N128.87 billion (72.9 per cent) increase over N329.28 billion recorded in the corresponding half of 2017 and N176.69 billion of the preceding half respectively”.

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.