Adaobi Rhema Oguejiofor
The Manufacturers Association of Nigeria (MAN) has said that the country’s lack of adequate electricity supply has been identified as a hindrance to the profitability of manufacturers, with an annual economic loss valued at N10.1trillion, which is about two percent shares of the nation’s Gross Domestic Product (GDP).
The Association made this claim in a statement, where it also reacted to the approval of the Electricity Bill by President Bola Ahmed Tinubu, noting that the Electricity Act 2023, if well implemented, promises to be a major game changer for the manufacturing sector.
MAN pointed out that the unfavorable situation surrounding electricity shortage has placed Nigeria among the worst countries to do business in, as it ranks 171 out of 190. The Association added that the current power supply is too insufficient to satisfy the energy requirements of the manufacturing sector and the entire population.
As an advocacy Association, MAN says it has always pushed for the need to charge cost-reflective electricity tariff in order to avoid extortion of its members. It also said it is of great delight that this new Act fits like a glove, as it will help actualize a cost–reflective tariff, considering the healthy price competition it will bring between the states and private investors.
“According to MAN, “the country’s epileptic power supply is one of the prominent reasons for the relocation of some of our members. Provided the new Act adequately addresses the challenges in the power sector. We are quite optimistic that such development will boost the performance of the sector and increase the sectoral contribution to the economy.