As the nation continues to grapple with the challenge of erratic power supply, the Manufacturers’ Association of Nigeria (MAN), has put the total amount of money, spent by its members on alternative energy in 2022, at N144.47billion, signifying a huge surge from  N77.21billion, recorded in the previous year.

The  association made the disclosure, in a statement signed by its Director General, Segun Ajayi-Kadir, tagged ‘Position of Manufacturers Association of Nigeria  (MAN)  on The Electricity Act 2023’.

It described the new Electricity Act as a ‘game changer’ that will go a long way in drastically reducing the cost of alternative energy incurred by nation’s manufacturers, and boost their profit margin.

The association  stated that the challenges in the nation’s power sector, over the past decades, induced by poor policy enforcement, over-regulation, instability of gas supply and bottlenecks in its transmission network, have resulted in the country’s unenviable status of being of the largest number of people in the world without access to electricity.

The manufacturers’ group also described the present power supply in the country, as inadequate to satisfy the energy requirements of the manufacturing sector and the entire population, thereby negatively impacting manufacturers’  profitability.

“As the largest energy access deficit in the world, Nigeria’s shortage of electricity supply has been identified as a hindrance to the profitability of manufacturers with an annual economic loss valued at about N10.1 trillion or 2 percent share of the country’s GDP.

“The unfavourable situation has positioned the country among the worst countries to do business with a rank of 171 out of 190. The Electricity Act 2023, if well implemented, promises to be a major game changer for the manufacturing sector through some of the following favourable implications.

“As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariff to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualize a cost –reflective tariff considering the healthy price competition it will bring between the states and private investors,” it stated.

The association also believes the new electricity Act will  encourage the inflow of manufacturing FDI, and boost the performance of the sector; noting that the  country’s epileptic power supply has been one of the prominent reasons for the relocation of some of its members.

MAN stated further that the new Act will also benefit the states immensely, because of the huge internally generated revenue they stand to gain from the decentralization of the power sector.

“Nigeria’s electricity market is one of the biggest in the world because of its massive population and growing demand for energy by households and businesses. Therefore, the amount of Internally Generated Revenue that each state stands to accrue from the decentralization of the power sector is delightful.

“If properly utilized, such huge revenue can bridge the infrastructure deficits in many states without imposing further tax burden on manufacturers,” the association argued.