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Manufacturers Spent N129.95bn On Independent Power In 2016 – Report - Business - Nairaland

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Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by cryptogene: 6:09am On Aug 06, 2017
Anna Okon


The instability in electricity supply from the national grid has continued to make businesses to look inwards through independent power generation , a new report has said .

According to the survey conducted by the Manufacturers Association of Nigeria , expenditure on self -generated energy in the manufacturing sector increased from N 58 .82 bn in 2015 to N 129 .95 in 2016 .

The report of the survey just released showed that the sector spent N 71 .13 bn more on independent power generation in 2016 .

A further analysis of the report indicated that manufacturers spent N 66 .99 bn on independent power generation in the second half of 2016 as against N 29 .48 bn spent in the corresponding period of 2015, showing an increase of N 37 .51 bn .

It also increased by N 4. 03 bn when compared with N62 .96 bn recorded in the preceding half of the year.
The report revealed that the share of energy for the sector stood at 36 per cent, and the supply averaged eight hours .

It stated that the rising expenditure on independent power generation and arbitrary increase in electricity tariffs were responsible for the high cost of production in the sector .

This , it noted , made it difficult for made - in- Nigeria products to compete well with imported goods in terms of pricing .

The association , in the report , noted that the macroeconomic terrain in 2016 , especially in the first half of the year , was highly volatile.

It described the acute shortage of foreign exchange , high lending rate and exclusion of some vital manufacturing raw materials from the official foreign exchange market as major economic problems during the period, adding that the situation was made worse by the declining household consumption due to inflationary effect on real time income .

The preferential forex allocation to manufacturers by the Central Bank of Nigeria , according to the association, was however the turning point in the second half of 2016 .

This , it said , was because the forex allocation was able to support the various investments already made locally for the development of raw materials and production , to a large extent .

“This , in fact, was responsible for the production momentum gained in the economy in the second half of the year ,” the report stated .

Among other recommendations , MAN advised the government to re -visit the power sector reform and fully implement the power sector road map to improve the efficiency of the generation , transmission and distribution companies .

It urged the government to re -classify manufacturing sector into strategic gas users from the current commercial classification .

MAN stressed the need to ensure proper settlement of acquired properties such as land for electricity equipment installation to avoid venting of anger that would lead to destruction of the infrastructure .

http://punchng.com/manufacturers-spent-n129-95bn-on-independent-power-in-2016-report/

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by obonujoker(m): 6:15am On Aug 06, 2017
Imagine....

Money dey cudda used ta employ more graduates....

Its well

2 Likes

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by Jerryojozy(m): 6:30am On Aug 06, 2017
Damn! Money that could have been used for other investment. Fix power and see how our economy will grow rapidly.



Genius J

1 Like

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by Shollay20(m): 8:07am On Aug 06, 2017
Still power no stable..
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by KingsArome(m): 8:07am On Aug 06, 2017
Men, this much o angry
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by baike: 8:07am On Aug 06, 2017
what is happening where are all the nairalanders?
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by uzoclinton(m): 8:10am On Aug 06, 2017
Eye opening
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by uzoclinton(m): 8:11am On Aug 06, 2017
baike:
what is happening where are all the nairalanders?
Theyve all gone to church

3 Likes

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by muller101(m): 8:11am On Aug 06, 2017
baike:
what is happening where are all the nairalanders?
gone to church

2 Likes

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by agrovick(m): 8:16am On Aug 06, 2017
This is just too much, to think we have a government
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by kings09(m): 8:20am On Aug 06, 2017
Not surprising
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by kirchofff(m): 8:23am On Aug 06, 2017
Imagine the amount companies spend on power generation, its so outrageous. But why hasn't our power be fixed all this while, is it that there's not enough money or no go contractor could figure it out? I also notice we still use hydro power plants where other advanced country use nuclear energy to generate power. We need serious restructuring in this nation.
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by davidif: 8:43am On Aug 06, 2017
And Nigerians wonder why there is no industrialization in his country?

1 Like

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by davidif: 8:44am On Aug 06, 2017
baike:
what is happening where are all the nairalanders?

Uhm, church?
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by davidif: 8:46am On Aug 06, 2017
kirchofff:
Imagine the amount companies spend on power generation, its so outrageous. But why hasn't our power be fixed all this while, is it that there's not enough money or no go contractor could figure it out? I also notice we still use hydro power plants where other advanced country use nuclear energy to generate power. We need serious restructuring in this nation.

Well power is generated by a state company for starters.
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by braine(m): 8:49am On Aug 06, 2017
Just look at the figures. Not some crooked round numbers.


By the way, we shouldn't be having such high cost of generating power ourselves
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by Blue3k(m): 8:59am On Aug 06, 2017
These guys can't catch a break on anything. They have to fund raising power cost, inflation, and forex scarcity. Made in Nigeria can hardly be cost competitive with these factors.

1 Like

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by Nobody: 9:03am On Aug 06, 2017
I read about a company that helps cut energy costs sometime.... Energy Integrals I think. The Man companies can check it out.
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by omohayek: 9:09am On Aug 06, 2017
One can only imagine how much better things might be for all these power-starved companies if the FG had at least allowed the GENCOs and DISCOs to target businesses willing to pay commercially viable rates for their electricity, instead of chaining them to a retail market rife with fraud and hobbled by cripplingly low price caps that fail to keep up with devaluation.

If businesses could buy power at more competitive rates, they would be able to expand and take on more workers at higher salaries, which in turn would strengthen the purchasing power of the general public, allowing them to pay realistic rates for reliable power, but here - as with so much else - Nigeria is plagued by short-term thinking concerned only with immediate gratification, so "leaders" prefer to keep in place policies that keep prices low to avoid upsetting the unrealistic expectations of the masses, and then turn around to wonder why GENCOs and DISCOs aren't eager to deepen their losses by providing more power. Nigeria is a madhouse of idiotic policy-making.

4 Likes

Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by egoldman(m): 9:21am On Aug 06, 2017
Ask Buhari and fashola .
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by Nobody: 9:25am On Aug 06, 2017
if Nigeria has stable electrical supply..........Nigeria would be one of the most industrialized country in Africa.if not the largest cos we have the potential.
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by medolab90(m): 9:28am On Aug 06, 2017
That money could have been diverted into other thing that could generate more employment opportunities
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by Henri8: 9:47am On Aug 06, 2017
Fashola is working and so is APC.
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by 48noble(m): 10:02am On Aug 06, 2017
una too dey call money, did u add d petrol I used in my office?
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by MrBONE2(m): 10:09am On Aug 06, 2017
grin tongue
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by loswhite(m): 10:22am On Aug 06, 2017
majekdom2:
I read about a company that helps cut energy costs sometime.... Energy Integrals I think. The Man companies can check it out.
you can't even see the energy not to talk abt cutting cost
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by ucheuzor1(m): 10:38am On Aug 06, 2017
obonujoker:
Imagine....

Money dey cudda used ta employ more graduates....

Its well
What are you thinking for crying out loud...won't they run their company anymore?
Won't they generate power for themselves as a result of the epileptic power supply??

You couldn't have blamed them for not employing more manpower. They use their money to generate power since Nigeria can't generate power supply.
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by kirchofff(m): 11:23am On Aug 06, 2017
davidif:


Well power is generated by a state company for starters.
what do you mean my state company?
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by davidif: 3:28pm On Aug 06, 2017
kirchofff:
what do you mean my state company?

I mean a company owned by the govt like NNPC, NLNG, NEPA (or whatever try call themselves this dsys).
Re: Manufacturers Spent N129.95bn On Independent Power In 2016 – Report by obailala(m): 4:42pm On Aug 06, 2017
kirchofff:
Imagine the amount companies spend on power generation, its so outrageous. But why hasn't our power be fixed all this while, is it that there's not enough money or no go contractor could figure it out? I also notice we still use hydro power plants where other advanced country use nuclear energy to generate power. We need serious restructuring in this nation.
The power problems we have in Nigeria isn't because we use hydro plants. Hydro plants are also as viable as nuclear plants; it just depends on the capacity you have.

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