The Manufactures Association of Nigeria (MAN) has once more criticized the shortcomings and high cost of energy, which have been recognized as the main obstacles facing the nation’s manufacturing industry.
The Association expressed sadness that Nigeria, which has a population of over 200 million and a major energy-dependent productive sector, only distributes 4000MW of electricity. This explains why a lack of electricity has consistently been cited as one of the industry’s biggest challenges in the numerous Manufacturers CEO Confidence Index (MCCI) surveys. Furthermore, several explanations for the weak competitiveness of the economy and manufacturing sector blame the energy issues.
The Association explained in its report that Nigeria is naturally endowed with hydro-carbon with oil reserves of about 37 billion barrels in 2021 and gas reserves of about 5.8 trillion cubic meter, but wondered why it has failed to exploit these resources to the benefit of the economy.
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Lamenting that Nigeria was about the only OPEC country that imports refined petroleum products, the manufacturers emphasised the need to resuscitate the national refineries.
In its report, MAN, recommended that domestic refining and improved energy situation in the country, adding there was need to review the current status of the four national refineries to determine their true status; commission the CHIYODA Group, the Japanese company that built the national refineries to rehabilitate them to resume domestic refining; review the Nigerian energy policy and ensure available energy sources, particularly natural gas is optimally explored and exploited. It also called for the creation of functional incentive to attract private sector investment in gas aggregation to end the current gas flaring. MAN equally advocated the creation of incentive to resuscitate private sector investment in the petrochemical industry; improve the capital expenditure on the energy sector for greater public investment in energy development and carry out and utilise the outcome, the Egypt’s energy development strategy.
Director General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, had said there was need for government to critically focus on the challenges that have continued to limit the sector’s performance.
He urged government to incentivise and remove the binding constraints that limit the day to day survival of the sector, as the challenges facing the sector have limited its competitiveness.
“The downturn in the sector’s performance is connected to insufficient power supply, high cost of diesel among others.”
President of the association, Francise Meshioye said the current energy crisis, manifesting in the scarcity of fuel and high cost of diesel, gas and Premium Motor Spirit (PMS) or petrol were limiting the performance of manufacturers, urging government to be intentional in meeting the needs of the sector for growth.
Story adapted from The Sun
