The Manufacrurers Association of Nigeria (MAN), has said that the current energy crisis, manifesting in the scarcity of fuel and high cost of diesel, gas and Premium Motor Spirit (PMS) or petrol are limiting the performance of manufacturers, urging government to be intentional in meeting the needs of the sector for growth.
The Association notes that inadequacies and high cost of energy, which have been identified are major challenges of manufacturing operations in the country.
The MAN, noted that Nigeria with over 200 million people and a huge productive sector that is energy-dependent, regretted that electricity distributed in the country remains a mere 4000MW.
This explains why in the various Manufacturers CEO Confidence Index (MCCI) reports, poor supply of electricity has been continuously ranked among the top challenges of the sector. In addition, the energy challenges are variously represented as the cause for the poor competitiveness of the economy and manufacturing sector.
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.
President of the Association, Francise Meshioye stated that Nigeria was about the only OPEC country that imports refined petroleum products, the manufacturers emphasised the need to resuscitate the national refineries.
The MAN in its report, 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.
The MAN also 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.”