Business

Manufacturers spend N77.22b on alternative energy sources

by JOHNMARK UKOKO

Manufacturers Association of Nigeria (MAN) has disclosed that the cumulative spending on alternative energy sources in the manufacturing sector amounted to N77.22 billion as against N81.91 billion in 2020.

It attributed the decline in expenditure on alternative energy sources for last year to the marginal improvement in the national electricity supply during the period.

MAN stated this in its second half economic review 2021 from July to December, which was made available to The Trumpet at the weekend just as president of the association, Mansur Ahmed, explained that the improvement was due to marginal improvement in power supply from the national grid.

He said this compelled members of MAN to invest heavily in alternative energy sources to sustain uninterrupted production activity. “While some of the manufacturers have invested in diesel generating plants, some others are utilising gas plants.

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The costs associated with these plants are further increased by expenditures on spare parts and other energy management apparatus, such as stabiliser, UPSs, inverters and other items,” Ahmed said.

He, however, lamented that unfortunately, the cumulative expenditure on alternative energy sources and the high tariff associated with supplies from the national grid, majorly accounted for consistent improvement in terms of average daily supply.

Consequently, he said in the second half of 2021, daily electricity supply to the manufacturing sector averaged 11 to 14 hours in the corresponding year to between 14 and 16 hours.

He said daily power outage for the second half of 2021 averaged three times as against four times in the second half of 2020, maintaining that the costs of the plants further increased by expenditure of other electricity equipment.

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