Alternative Electricity Supply costs Manufacturers Over N143b

The Manufacturers Association of Nigeria (MAN) reveals that in the last two years, 2019 to 2020, Manufacturers in Nigeria, spent about N143.29 billion on alternative power supply,

The Association said members in 2020 spent N81.91 billion on alternative power as against N61.38 spent in 2019, saying the increase in alternative energy expenditure in the sector was due to general high inflationary pressures on the economy.

It also noted that the increase in petrol pump price exerted significant influence on prices of some of the fuel used by the sector to generate electricity.

In its bi-yearly review of the economy report, the manufacturers’ body called on the Federal Government (FG) to review the recent increase in electricity tariff,  as many Nigerians have decried the increase in monthly electricity bills.

However, Energy information generated from the sector has shown constant improvement in electricity supply to the manufacturing sector. In the second half of 2020, electricity supply from the distribution companies to the sector increased to 12 hours on a daily average from 10 hours per day on the average recorded since the first half of 2019. The average daily power outage had constantly averaged four times per day.

The report further read, “The pandemic had a crushing impact on the manufacturing sector as it sector fell into economic recession in the third quarter of 2020. At the moment and following the impact of COVID-19, productivity in the sector is at its lowest and therefore requires an orchestrated action to rekindle significant productive activities in the sector.


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