The Manufacturers Association of Nigeria (MAN) has asserted that the country’s shortage of electricity supply has formed a major stumbling block to the profitability of manufacturers with an annual economic loss valued at about ₦10.1tn.
Africa Today News, New York reports that the figure quoted is about two per cent share of the country’s Gross Domestic Product.
MAN pointed out that the unfavourable situation has positioned the country among the worst countries to do business with a rank of 171 out of 190.
The manufacturers made the claim in a statement in which it reacted to the assenting of the Electricity Bill by President Bola Tinubu.
According to MAN, the current power supply is inadequate to satisfy the energy requirements of the manufacturing sector and the entire population.
The association however noted that the Electricity Act 2023, if well implemented, promises to be a major game changer for the manufacturing sector.
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The statement partly read, ‘As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariff to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.
‘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 encourage the inflow of manufacturing FDI, boost the performance of the sector and increase the sectoral contribution to the economy.’
Africa Today News, New York reports that electricity has remained a major challenge to manufacturers in the country.