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/

Imagine....

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

Its well

Damn! Money that could have been used for other investment. Fix power and see how our economy will grow rapidly.



Genius J

Still power no stable..

Men, this much o

what is happening where are all the nairalanders?

Eye opening

baike:
what is happening where are all the nairalanders?

Theyve all gone to church

baike:
what is happening where are all the nairalanders?

gone to church

This is just too much, to think we have a government

Not surprising

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.

And Nigerians wonder why there is no industrialization in his country?

baike:
what is happening where are all the nairalanders?

Uhm, church?

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.

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

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.

I read about a company that helps cut energy costs sometime.... Energy Integrals I think. The Man companies can check it out.

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.

Ask Buhari and fashola .

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.

That money could have been diverted into other thing that could generate more employment opportunities

Fashola is working and so is APC.

una too dey call money, did u add d petrol I used in my office?

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

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.

davidif:


Well power is generated by a state company for starters.

what do you mean my state company?

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).

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.