The Manufacturers Association of Nigeria (MAN) has revealed that its members spent about N246.38bn generating their own electricity between 2016 and 2017.
The association revealed that members spent N129bn in 2016 and N117.38bn in 2017 on private power generation and N43bn on private power generation in the first half of 2018.
MAN pointed out presently the cost of electricity constituted 40 per cent of the cost of production and this is making the sector largely unprofitable in Nigeria..
“The challenge of inadequate electricity supply persisted in 2018, worsened by skyrocketing electricity price. Inadequate electricity supply remains a major driver of the cost of production.
“Our survey finding shows a slight improvement in electricity generation and distribution with the challenges coming from obsolete electricity infrastructure, weak transmission and distribution networks.”
MAN commended the Federal Government for efforts aimed at utilising stranded 2,000 megawatts of electricity through the Eligible Customer initiatives introduced last year.
The association noted, however, that the uptake of the stranded electricity was slow, owing to the conditions established for its access.
The government had specified that for customers to be eligible to access the stranded 2,000 megawatts, they should not owe any of the distribution companies.
In the light of this requirement, MAN recalled that there was a legal tussle between the association and some distribution companies, over poor management of the Multi-Year Tariff Orders, which led to the claim by the DISCOs that MAN members owed them.