MAN urges Government to continue provides stimulus packages for sector’s recovery from avert shutdown

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The Manufacturers Association of Nigeria (MAN) represents the interests of over 3,000 manufacturers (small; medium; large and multinational industries) spread across 10 sectors, 76 sub-sectors and 16 industrial zones. Association pointed out that manufacturers are heavy users of electricity in Nigeria and this necessitated the Association’s keen interest in all electricity related discourse and development, particularly electricity supply and tariff.

According to the press statement endorsed by Segun Ajayi-Kadir, Director General of MAN and sent to The AmehNews stated the position of the Manufacturers Association of Nigeria on the recent increase in electricity tariff saying the manufacturing sector employs over 5 million workers, directly and indirectly with8.93% contribution to Gross Domestic Product. The sector also dominates export trade in the West African region, generates foreign exchange, and contributes substantially to revenue of Government and human capital development in Nigeria, Ajayi-Kadir added.

 

 

“It is therefore imperative that the performance of sector is enhanced through a pro-manufacturing policy that will encourage scale and lower unit cost of production rather that throwing fiery darts that will worsen its performance.

 

“Top on the list of challenges confronting the sector is the issue of inadequate electricity supply and this has been largely responsible for the lackluster performance of the sector for some decades now. In fact, electricity related expenses of a manufacturing concern constitute about 40% of the production overhead in some sub- sectors. This is not growth friendly and is antithetical to competitiveness.

 

The MAN DG noted that manufacturing sector, which is the engine of sustainable growth, is still struggling with the debilitating impact of the pandemic and is yet to recuperate. The Association expressed the expectation of operators that Government will continue to provide stimulus packages that will aid the recovery of the sector and avert the shutdown of factories nationwide with multiplier effect on the employment of about 5 million workers.

 

“We expect that NERC as the regulator will ensure improved electricity generation, transmission and distribution that will lead to adequate and reliable electricity supply in the country rather than squeezing the mere 4000MW to meet all revenue needs of key sharing stakeholders. We equally expect NERC to make regulations that will ensure that 80% of consumers are metered to ensure consumption reflective payment; aid inflow of investment in the energy industry in order to increase generation capacities and usher in large scale production of electricity. The recent absurd increase does not support these desirable propositions.

 

 

The Captioned Photo: The Manufacturers Association of Nigeria (MAN), Director General, Segun Ajayi-Kadir 


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