Over N246 billion Have been spent fueling generators in Nigeria

No fewer than N246 billion has been spent by manufacturers fuelling their generators alone in the last 2 years. This was contained in a recently released report from Manufacturers Association of Nigeria (MAN).

Nigeria, Economy business-news

The MAN’s analysis showed that the operators spent N129 billion in 2016 and N117.38 billion in 2017 on private power generation. The data also revealed that the manufacturers spent a further N43 billion on private power generation in the first half of 2018.

While reviewing the performance of the manufacturing sector in 2018, MAN pointed out that a situation where the cost of electricity constituted 40 per cent of the cost of production was not manufacturing friendly.

It stated,

“the challenge of inadequate electricity supply persisted in 2018, worsened by skyrocketing electricity price. inadequate electricity supply remains a major driver of the cost of production.

“our survey finding shows a slight improvement in electricity generation and distribution with the challenges coming from obsolete electricity infrastructure, weak transmission and distribution networks.”

Nigeria’s poor power supply

It is no longer news that Nigeria is struggling with power stability. The ongoing failure in the power sector can’t be swept under the carpet either, as manufacturers and business owners are at the receiving end.

The power transmission and distribution companies can barely supply electricity to households, talkless of the heavy users – like manufacturer in different space of the economy. This challenge persists despite having the world’s largest deposits of coal, oil and gas and the country’s status as Africa’s largest oil producer.

SEE ALSO  Nigeria’s Oil Revenue to Dangerously Drop Pending Saudi Arabia's Decision

Power supply difficulties cripple the agricultural, industrial and business sectors at large. It has also played a key role in impeding the country’s economic development. The energy supply crisis is complex, stems from a variety of issues and has been ongoing for decades.

Consequently, most Nigerian businesses and households run more Premium Motor Spirit (PMS, popularly called petrol) or diesel-fueled generators to supplement the intermittent supply.

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Schwiz Josh

Schwiz Josh

Basically, I'm a programmer and Entrepreneur, Web based. Schooled in UNIZIK. I love classical music.

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