Manufacturers in Africa’s most populous country are seeking partnerships with various stakeholders in Nigeria’s power sector for adequate energy to improve their operations and drive down costs.
Speaking during a recent Manufacturers Association of Nigeria (MAN) energy summit themed ‘Power Supply Adequacy for Industrial Growth in Nigeria,’ Francis Meshioye, president of the association said power spent accounts for over 30 percent of manufacturers operating costs.
He noted that this has made maintaining competitiveness in business a huge challenge for Nigerian manufacturers while calling for a strategic engagement with power industry stakeholders to find a sustainable solution to the country’s energy crisis.
He said that the manufacturing sector is willing to work with energy experts, “share knowledge and identify innovative solutions to accelerate the journey towards energy security for manufacturers.”
He noted that the country cannot drive industrialisation without adequate power supply, calling on all players to forge a united front in addressing issues limiting adequate power supply.
Identifying some of the energy industry challenges, Segun Oduntan, chairperson of the Association Nigeria of Electricity Distributors (ANED), blamed the inefficiencies in the power sector on corruption and utilisation of outdated infrastructure.
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According to him, corruption plays a major role in the continuous decline in the country’s power sector.
In a comparative analysis, he stated that it cost Ethiopia $4.8 billion and 14 years to construct its 6,450 megawatts hydropower project which is the largest dam in Africa, yet Nigeria spent $5.8billion in 42 years to build its 3,050 megawatts Manbilla hydropower project.
He stated prioritising national progress above personal gain by embracing patriotism and ownership will help the nation enjoy the dividends of democracy for the long haul.
“Our energy infrastructure is outdated and unfortunately as a nation, we don’t like taking ownership. We should replace the energy infrastructure, get it going well, that is the truth and how we can all grow as a nation.
“To upgrade the infrastructure requires a lot of money. We need about N2billion annually to empower the transmission and distribution network. Your cost of production determines the selling price.”
Matthew Edevbie, group managing director, Income Electric, opined that manufacturers must encourage responsible power usage, embrace technology and deploy hybrid power generation systems to remain competitive in the marketplace.
These alternative energy solutions, which may include; opting for lower energy-consuming equipment and appliances, adoption of solar power, conversion from petrol to CNG power, and utilising electricity generated from the national grid can significantly reduce the cost of power for manufacturers.
“The cost of power directly correlates with the development of any nation.”
Citing data from the World Bank, he noted that the country’s economy loses about $26 billion yearly and manufacturers $2 billion owing to inadequate power supply.
“We can naturally solve this with behavioural change. We abuse power so much in Nigeria.”
“Today in the world, human behaviour is moderated with technology. We can reduce energy consumption mainly by changing habits, and changing the kind of products so that the energy supply responds to the demands per time.
“Energy efficiency makes our systems consume less and we can save cost by improving our natural habits with documented controls,” Edevbie said.
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