As enterprises self-generate more than 14,000 megawatts of electricity due to inadequate supply from power distribution firms, rising energy costs are impairing economic activity in Africa’s most populous country.Information Guide Nigeria
The Manufacturers Association of Nigeria’s member companies invested N639 billion in alternative energy sources between 2014 and 2021, according to documents gathered by The Punch on Tuesday.
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Manufacturers spent N25 billion in 2014, N59 billion in 2015, and N129.95 billion in 2016.
In addition, they spent N117.38 billion in 2017, N93.11 billion in 2018, N61.38 billion in 2019, N81.91 billion in 2020, and N71.22 billion in 2021.
The Punch discovered that the figures had changed over time as a result of various variables, including the association’s membership size and the effects of inflation.
“This is why we are talking about renewable energy today, especially solar, in addition to the regular gas and diesel-operated facilities,” Chairman, Manufacturers Power Development Company of the Manufacturers Association of Nigeria, Ibrahim Usman, told The Punch in a telephone interview.
“We have not utilised our natural endowments. In Morocco, Saudi Arabia, Algeria and several other countries, there are solar farms. We have sunlight in Nigeria and we need to start utilising it,” he further said.
In order to lower the high energy costs paid by manufacturers around the nation, MAN established a power development company in 2016.
To find out how much self-generation potential there was in the manufacturing sector, Adeola Adenikinju, a professor of economics, conducted a survey in 2014.
In 2013, manufacturers’ self-generation capacity reached 13,223 MW, according to the study, which was supported by the German and European Union governments.
Usman said that since then, the capacity of self-generation has surpassed 13,000 MW, while other sources place it between 14,000 and 20,000 MW.
The amount of power produced by manufacturers using fuels like low-pour fuel oil, gas, diesel, and other sources is referred to as self-generation capacity.
“Should manufacturing companies that are already battered with multiple taxes, poor access to foreign exchange and now over 200 per cent increase in price of diesel be advised to shut down operations? Should we fold our arms and allow the economy to slip into the valley of recession again?” Director-General of MAN, Segun Ajayi-Kadir, asked in a July statement sent to The Punch.
He said “as a matter of priority,” the government must “develop a National Response and Sustainability Strategy to address challenges emanating from the ongoing invasion of Ukraine by Russia,”
“Given the current situation, manufacturers should embrace the energy mix. Renewable energy can be used by the service industry because the cost of maintenance is low,” Professor of Energy Economics at Nnamdi Azikiwe University, Awka, Uche Nwogwugwu, told The Punch in a telephone interview.
“We are encouraging technologies to evolve that will enable heavy industries to use renewable energy. It is unfortunate we are unable to turn this situation to our benefit die to oil theft and bad leadership,” he added.JAMB Result
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