Manufacturers spend N43b on alternative energy as power supply improves slightly

With electricity supply, particularly from the distribution companies remaining at an average of nine hours a day in the first half (H1) of 2018, local manufacturers’ expenditure on alternative energy source stood at N43.19 billion during the period.

Although electricity remained a core challenge of the manufacturing sector in H1 2018, local producers noted that average number of power outage in the period dropped to three times dally, indicating slight improvement in electricity supply to the sector, even as spending on alternative energy reduced.

According to latest data from the Manufacturers Association of Nigeria (MAN), expenditure on alternative energy sources in the sector stood at N43.19 billion H1 2018, which is 34.6 per cent and 15.9 per cent lower than N66.03 billion recorded in H1 2017, and N51.35 billion of the preceding half respectively.

The operators explained that the decline in expenditure on alternative energy source may be ascribed to low utilisation of energy in the period due to general sluggishness of economic activities and slight improvement in electricity supply from the national grid.

To address the challenges, the manufacturers urged the Federal Government to ensure the operability of Independent Power Producers (IPP) for On/Off grid power generation, and the Micro Grid Initiative.

Source: The Guardian



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