Manufacturers have decried the high energy cost now affecting production and threatening survival of the sector. The operators are also lamenting that more multinational manufacturers were leaving due to increasing energy costs and unfriendly environment, as they have suffered huge economic losses.
Consequently, the escalating energy costs, alongside other unfriendly policies and poor infrastructure among others have negatively affected the economy, reflecting in the high production and operating costs as well as potential suspension of operations for businesses that are unable to pass the costs to consumers.
The rising energy costs have disrupted productive activities as factories self-generate more than 14,000 megawatts of electricity due to poor supply from electricity distribution companies.
Commenting on these hurdles to the growth of the sector, President, Manufacturers Association of Nigeria, (MAN), Francis Meshioye, queried why the country was exporting when it should ensure it has adequate electricity supply at home.
“It is a bit awkward. If we need electricity here, why do we need to export it? Why don’t we ensure that we have an adequate electricity supply at home? We rejected the hike in electricity tariff because, in the first instance, energy costs are very high for manufacturers, particularly those who consume much, like steel manufacturers.”
