A new report has said that the instability in electricity supply from the national grid has continued to make businesses to look inwards through independent power generation, The Punch reports.
According to the survey conducted by the Manufacturers Association of Nigeria (MAN), expenditure on self-generated energy in the manufacturing sector increased from N58.82bn in 2015 to N129.95bn in 2016. The report of the survey just released showed that the sector spent N71.13bn more on independent power generation in 2016.
A further analysis of the report indicated that manufacturers spent N66.99bn on independent power generation in the second half of 2016 as against N29.48bn spent in the corresponding period of 2015, showing an increase of N37.51bn. It also increased by N4.03bn when compared with N62.96bn recorded in the preceding half of the year.
The report revealed that the share of energy for the sector stood at 36 per cent, and the supply averaged eight hours. It stated that the rising expenditure on independent power generation and arbitrary increase in electricity tariffs were responsible for the high cost of production in the sector. This, it noted, made it difficult for made-in-Nigeria products to compete well with imported goods in terms of pricing.