The Manufacturers Association of Nigeria (MAN) claims the country’s inadequate power supply is a highlighted barrier to manufacturers’ profitability. The experienced annual economic loss is estimated at roughly N10.1 trillion. This is basically nearly 2% of the country’s Gross Domestic Product.
According to MAN, the country has a rank of 171 out of 190. This makes it one of the least desirable places to conduct business.
In a statement in response to President Bola Tinubu’s approval of the Electricity Bill, the manufacturers made the assertion. MAN claims that the existing power supply is insufficient to meet the needs of the manufacturing industry and the entire population in terms of energy.
However, the group pointed out that, if properly implemented, the Electricity Act 2023 has the potential to fundamentally alter the industrial industry.
The statement partly read-
“As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariff to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.
“The country’s epileptic power supply is one of the prominent reasons for the relocation of some of our members. Provided the new Act adequately addresses the challenges in the power sector, we are quite optimistic that such development will encourage the inflow of manufacturing FDI, boost the performance of the sector and increase the sectoral contribution to the economy.”
MAN also expressed confidence that, if used wisely, such enormous cash may overcome many states’ infrastructure gaps without adding to the burden on businesses.
cc: Punch Ng
