The Manufacturers Association of Nigeria has said exorbitant energy costs continue to be a significant barrier for the manufacturing sector, with electricity expenses comprising over 35% of manufacturers’ overall cost structure.
With the development, the association urged the government to take urgent action to address the ongoing challenges faced by manufacturers in Nigeria.
The MAN President, Francis Meshioye, called on the federal government to intervene in the ongoing tariff disputes between manufacturers and electricity Distribution Companies.
Meshioye spoke at the recently concluded 4th Adeola Odutola Lecture and Presidential Luncheon, which marked the culmination of the 52nd Annual General Meeting of MAN.
He expressed concern about the financial burdens placed on manufacturers, particularly due to frequent increases in electricity tariffs and the disruptive practices of DisCos.
“It is unfortunate that the Distribution Companies (DisCos) persistently disconnected manufacturing facilities from the national electricity grid, despite payment of current electricity charges on existing tariff, and against court injunction prohibiting them,” Meshioye lamented.
He further warned that manufacturers are struggling to cope with tariff increases exceeding 100%, asserting, “Electricity costs alone accounted for more than 35% of an average manufacturer’s cost structure.”
He urged the government to step in and facilitate a more favorable tariff environment to support the manufacturing sector’s growth and sustainability.
