Energy boost production cost in manufacturing sector by 40%

Manufacturers Association of Nigeria, MAN has calculated that cost of  energy accounts for  40 percent of total production cost in some sectors of the Nigerian economy.

Segun Ajayi-Kadiri, Director General, Manufacturers Association of Nigeria (MAN) who made this disclosure at a workshop of the pilot Energy Efficiency Network (EEN) for industries in Nigeria hosted by Nigerian Bottling Company Limited (NBC) recently in Lagos therefore identified efficient energy consumption as critical factor for sustainable and profitable business.

Electricity is one of the  greatest challenges confronting  the industrial sector. The others are insecurity, bad roads and high interest rate which are combined to impede manufacturers’ ability to compete with their foreign counterparts.

Also speaking at the workshop, NBC Country Manufacturing Director, Anthony Njenga noted that, “Energy efficiency is embedded in the company’s strategy to protect the environment and be a sustainable business, hence the Company is pleased to participate in this pilot Energy Efficiency Network (EEN) for industries in Nigeria by NESP”

The pilot Energy Efficiency Network project was organised by the Nigerian Energy Support Programme (NESP) in collaboration with the Manufacturers Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

The successful implementation of the initiatives discussed at the Energy Efficiency Network (EEN) is expected to  go a long way to increase productivity, improve competitiveness., support sustainability, reduce environmental carbon footprints, whilst helping industrial enterprises to reduce the already high cost of production due to energy cost.

Participating companies that took part in the EEN which ran from February – August received technical support to implement an energy management system based on ISO 50001, the international standard for energy management, which was recently adopted and published by the Standards Organisation of Nigeria (SON) as a Nigerian Industrial Standard (NIS/ISO 50001). The other participating companies were BEL Papyrus Limited, Conserveria African Limited, Cormart Nigeria Limited and Vitafoam Nigeria Plc.

A statement said energy efficiency is a major agenda for NBC both from a sustainability and cost perspective. “NBC has established itself as a key player in the Nigerian non-alcoholic beverage industry and is making huge investments in Nigeria, to drive world class operations to better satisfy its customers, consumers, while adding value to its communities and other stakeholders”.