The Manufacturers Association of Nigeria has expressed deep concern over the severe consequences of ongoing power outages, which have significantly hindered industrial productivity across the country.
Manufacturers are now struggling to maintain operations, with most unable to exceed eight working hours a day due to unreliable electricity supply, a situation exacerbated by frequent grid collapses.
The Director-General of MAN, Segun Ajayi-Kadir, spoke to The PUNCH, highlighting how the continuous energy challenges are driving up costs and disrupting production.
He pointed out that these issues have left manufacturers with a staggering N1.2 trillion worth of unsold inventory, a reflection of the widespread disruption in production.
Ajayi-Kadir noted that many manufacturers are now forced to rely on expensive generator power to keep their businesses running.
“Power remains very high,” Ajayi-Kadir emphasized. “The cost of power remains very high, and you will be aware that it has been difficult even to sustain supply in the last three to four weeks. I mean, this is what we have said over time.”
The Director-General added that due to the scarcity of power, only a handful of manufacturers are able to work beyond eight hours a day, and the majority are not metered, which forces them to bear the brunt of the inflated costs of inadequate power.
The frequency of grid failures has been a critical issue. In fact, the national grid has collapsed 10 times since the beginning of the year, and in October alone, it collapsed three times within a single week.
These outages have disrupted production schedules and damaged vital machinery, with many businesses turning to costly alternative energy sources to avoid further production delays.
Ajayi-Kadir stressed, “All these outages and the collapse of the national grid constitute a huge challenge. This is why many people would rather go for the use of generators where they can be sure of a steady and adequate supply of power.”
The MAN DG called on the Federal Government to take more decisive action to address the energy crisis.
He urged the government to incentivize the adoption of alternative energy solutions and to work closely with state governments and private sector stakeholders.
He also emphasized the importance of fully implementing reforms made possible by the recent amendments to the Power Act, advocating for long-term solutions that will stabilize the electricity supply and bring down costs for manufacturers across the nation.
