The Nigerian Manufacturers said it’s has invested approximately N458.12 billion in alternative energy sources over the past five years due to the ongoing issue of unreliable, costly electricity supply.
Data compiled from the yearly and bi-yearly reports of the Manufacturers Association of Nigeria (MAN) revealed that manufacturers have invested approximately N458.12 billion in generating their own power to supplement the inadequate electricity supplied by distribution companies for operating their factories.
A closer look at the figures indicates that in 2018, N93.11 billion was spent, followed by N61.38 billion in 2019, N81.91 billion in 2020, N77.22 billion in 2021, and N144.50 billion in 2022.
The energy expenses for manufacturers accounted for a significant portion, ranging from 35 to 40 percent of their total costs.
As a result, some multinational companies have decided to leave Nigeria because of the negative impact of high energy costs on their profitability.
MAN revealed that the inadequate electricity supply in Nigeria is the main barrier to profitability for manufacturers in the country.
