Manufacturers in Nigeria, in the last two years, 2019 to 2020, spent about N143.29 billion on alternative power supply, says the Manufacturers Association of Nigeria (MAN).
MAN said members in 2020 spent N81.91 billion on alternative power as against N61.38 spent in 2019, saying the increase in alternative energy expenditure in the sector was due to general high inflationary pressures on the economy.
It, however, noted that the increase in petrol pump price exerted significant influence on prices of some of the fuel used by the sector to generate electricity.
In its bi-yearly review of the economy report, the manufacturers’ body called on the Federal Government (FG) to review the recent increase in electricity tariff.
MAN also lamented the negative impact of COVID-19 pandemic on the manufacturing industry following the global lockdown.It said: “Energy information generated from the sector has shown constant improvement in electricity supply to the manufacturing sector. In the second half of 2020, electricity supply from the distribution companies to the sector increased to 12 hours on a daily average from 10 hours per day on the average recorded since the first half of 2019. The average daily power outage had constantly averaged four times per day.
“However, expenditure on alternative energy in the second half of 2020 increased to N57.75 billion from N34.70 billion recorded in the corresponding half of 2019; thus, indicating N23.05 billion or 66.4 per cent increase over the period.
“The year 2020 was a very difficult one for the economy and manufacturing sector due to the onslaught of COVID-19 pandemic. Coronavirus had a staggering devastation on global economies as evident in the huge death toll of manpower; crashing of crude oil price, slowing of global supply and demand; and total halting of economic activities throughout the lockdown.”
The report further read, “The pandemic had a crushing impact on the manufacturing sector as it sector fell into economic recession in the third quarter of 2020. At the moment and following the impact of COVID-19, productivity in the sector is at its lowest and therefore requires an orchestrated action to rekindle significant productive activities in the sector.”
Source: guardian
