• Sunday, December 03, 2023
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Investors pump N28bn into Nigeria’s electrical industry

What investors should know about the Electricity Act 2023

Latest data from the Manufacturers Association of Nigeria (MAN) show that investors in the electronics/electrical sub-sector pumped N27.83 billion into the industry within the first half of 2014.

These investments went into lands, buildings, plants, machines, furniture, equipment, motor vehicle and assets under construction.

This represents a 303 percent rise from N6.91 billion investments recorded in the second half of 2013. It also shows that the industry is beginning to attract more than a passing interest from investors.

Some of the key players and investors in this industry include Coleman Technical Industries, Nexans Kabelmetal, Cutix plc, MicCom Cables and Wires Limited, Afrique Products Limited, Nigerchin Wires and Cables, and Synco Electrical, among others.

The electrical/electronics industry’s investments have been encouraged by increased patronage, which is informed by gradual realisation of Nigerian consumers that locally made products are better than imported ones from Asia.

Stakeholders have consistently said that cables, wires and other electrical products made in the country had proved to be more durable and safer than imported ones that could expose homes and offices to fire disasters.

“Cables produced in Nigeria may cost more but they last longer than Chinese and Asian counterparts. You only need to try and see,” said David Ifejika, a wholesale dealer of imported and locally made cables and wires, in an interview with Real Sector Watch.

Speaking at a facility tour of Coleman Technical Industries’ new factory in Sagamu, Ogun State, recently, Joseph Odumodu, director-general, SON, told Real Sector Watch that its standardisation policy had brought N20 billion into the electrical/electronics industry.

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Coleman Technical Industries has so far invested N10 billion into its new plant at Sagamu for the manufacture of cables, wires and other electrical/electronics products.

According to Odumodu, another investor has also pumped a similar amount into the industry, saying “we are working on a new national policy to build infrastructures that will help indigenous firms spread made-in-Nigeria goods throughout the world.”

The SON boss said the demand-supply balance in the cable market had continued to create a loophole for counterfeits in the market, but stressed that the market would be sanitised for indigenous manufacturers committed to growing the industry.

Real Sector Watch had earlier reported that players in the industry were seriously complaining about two key disincentives to investments – counterfeiting and port gridlocks.

“The two challenges are counterfeiting of cables and delay at clearing of imports at the sea ports,’’ said the players, in their sectoral report, obtained at the annual general meeting of the MAN, held recently in Lagos.

Data obtained from MAN last year showed investments in this sector rose from N2.54 billion in the first half of 2013 to N6.91 billion in the second half of the same year.

To battle counterfeiting of these products, the MAN Export Group has suggested a regional approach, as this has become a cross-border problem.

“Trademarks and brand names should be made trans-national and be fully recognised by nations in the ECOWAS sub-region to help fight against counterfeiting,’’ Tunde Oyelola, chairman, MAN Export Group, told Real Sector Watch.