The Manufacturers Association of Nigeria has commended the new electricity act signed into law by President Bola Ahmed Tinubu, noting that, if well implemented, it promises to be a major game changer for the manufacturing sector.
In a statement, MAN said manufacturers in the country lose N10.1tn yearly, which accounts for two percent of the country’s GDP, due to poor electricity supply.
MAN noted that the situation has positioned the country among the least desired places to do business with a rank of 171 out of 190 globally.
According to MAN, the current power supply across the country is inadequate to satisfy the energy requirements of the manufacturing sector and the entire population.
The statement partly read, “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 actualise a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.
“The country’s epileptic power supply is one of the prominent reasons for the relocation of some of our members. Provided the new Act adequately addresses the challenges in the power sector, we are quite optimistic that such development will encourage the inflow of manufacturing FDI, boost the performance of the sector and increase the sectoral contribution to the economy.”