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Manufacturers Lose N10.1trn Annually to Power Crisis, Says MAN

June 19, 2023
in Business
Manufacturers Lose N10.1trn Annually to Power Crisis, Says MAN
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Manufacturers Association of Nigeria
Manufacturers Association of Nigeria


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Manufacturers Lose N10.1trn Annually to Power Crisis, Says MAN

The Manufacturers Association of Nigeria (MAN) says the country’s shortage of electricity supply has been identified as a hindrance to the profitability of manufacturers with an annual economic loss valued at about N10.1tn, about two per cent share of the country’s Gross Domestic Product.

MAN noted that the unfavourable situation has positioned the country among the worst countries to do business with a rank of 171 out of 190.

The manufacturers made the claim in a statement in which it reacted to the assenting of the Electricity Bill by President Bola Tinubu.

According to MAN, the current power supply is inadequate to satisfy the energy requirements of the manufacturing sector and the entire population.

The association however noted that the Electricity Act 2023, if well implemented, promises to be a major game changer for the manufacturing sector.

The statement partly read, “As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariff to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.

“The country’s epileptic power supply is one of the prominent reasons for the relocation of some of our members. Provided the new Act adequately addresses the challenges in the power sector, we are quite optimistic that such development will encourage the inflow of manufacturing FDI, boost the performance of the sector and increase the sectoral contribution to the economy.”

MAN further expressed optimism that if properly utilised, such huge revenue can bridge the infrastructure deficits in many states without imposing further tax burden on manufacturers.

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