Market News
Power crisis: Manufacturers reduce production time to eight hours daily - PUNCH
The Manufacturers Association of Nigeria has raised the alarm over the crippling impact of persistent power outages on industrial productivity, complaining that most manufacturers are now unable to operate beyond eight hours daily.
MAN Director-General, Segun Ajayi-Kadir, told The PUNCH how energy challenges contributed to the decline manufacturers faced amid escalating costs and unreliable electricity supply.
Ajayi-Kadir noted that the situation, exacerbated by repeated national grid collapses, has left manufacturers grappling with unsold inventory worth over N1.2tn and forced many to rely on costly generator power.
“Power remains very high,” he asserted. “The cost of power remains very high and you will be aware that it has been difficult even to sustain supply in the last three to four weeks. I mean, this is what we have said over time.
“Now, because there is a high level of unsold inventory, I think up to N1.2tn, manufacturers are not even producing. Very few produce more than eight hours a day, and most of them are not metered. So they are being made to pay this high cost for even power that is inadequate or unavailable.”
Nigeria has suffered recurring national grid failures that interrupt production schedules and damage critical machinery, pushing many businesses to seek alternative energy sources.
The PUNCH reported on November 6, 2024, that the national grid has collapsed 10 times since January and that within one week in October, the grid collapsed three times.
According to Ajayi-Kadir, “All these outages and the collapse of the national grid constitute a huge challenge. This is why many people would rather go for the use of generators where they can be sure of a steady and adequate supply of power.”
The MAN DG urged the Federal Government to incentivise alternative energy solutions and collaborate with sub-national entities and private sector players to address the power crisis.
He called for the full implementation of reforms enabled by the amendment to the Power Act, stressing the need for long-term solutions to stabilise electricity supply and reduce costs.
