Low output and high input costs are pushing more production firms to opt for independent power projects (IPPs) in industrial clusters. They say the strategy is to enhance sustainable electricity supply, The Guardian reports.

According to the manufacturers, the move became necessary having waited on electricity distribution companies to provide steady power supply to no avail amid high energy costs with which they have had to contend. Besides managing expenses, the move will also see to the return of more industries and increase capacity utilisation which has been at a low ebb in recent times. And ultimately, the idea would also lead to the creation of more jobs for Nigerians and reduction in prices of goods.

To achieve their power generation and distribution plan, the manufacturers explained that new transmission lines may be created for users within the clusters, adding that the Manufacturers Association of Nigeria (MAN) has the support of the Federal Government, Nigerian Electricity Regulatory Commission (NERC) and other stakeholders in making the project a reality. The plan was unveiled at the signing of a Memorandum of Understanding (MoU) between MAN and one of the independent power developers for the pilot phase of its IPPs, Tower Aluminum Nigeria Plc.