The Manufacturers Association of Nigeria (MAN) has expressed optimism that the recently signed 2023 Electricity Act will benefit the country’s manufacturing sector.
According to MAN, the Act will tackle the long-standing issue of inadequate electricity access for Nigerian manufacturers.
The new Act adequately addresses the challenges in the power sector, and we are quite optimistic that such development will encourage the inflow of manufacturing foreign direct investment (FDI), and boost the performance of the sector.
The Manufacturers Association of Nigeria (MAN) has expressed its belief that the newly signed 2023 Electricity Act will have a positive impact on the country’s manufacturing sector.
In an official statement, MAN highlighted that Nigerian manufacturers have long faced challenges due to inadequate access to electricity.
However, with the Act, electricity access will become more accessible to the advantage of manufacturers. The inclusion of renewable energy as an additional capacity is expected to further facilitate improved performance within the manufacturing sector.
A part of MAN’s statement read:
“In light of the huge energy deficit occasioned by the age-long challenges in the power sector, newly inaugurated President Tinubu’s administration has set the ball rolling by signing the Electricity Act 2023, which is meant to be a game changer to address the numerous constraints within the sector.
“The new Act adequately addresses the challenges in the power sector, and we are quite optimistic that such development will encourage the inflow of manufacturing foreign direct investment (FDI), boost the performance of the sector, and increase the sectorial contribution to the economy.
“For manufacturers, investment in renewables like solar will not only promote a cleaner climatic environment but ensure that energy consumption is cost-efficient. The cost savings will directly improve profit margin and promote further manufacturing investments.”
According to the statement by MAN, 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. The Association outlined some more benefits of the Act to its members:
This according to MAN implies that If the amount of internally generated revenue (IGR) that each state stands to accrue from the decentralization of the power sector is used judiciously, it can bridge infrastructure deficits in states without further tax burdens on manufacturers.
Since energy is the most vital input of manufacturers, the empowerment of private manufacturing companies to generate their own electricity will unleash massive investment in backward integration activities, which will no doubt be a major enabler of energy security within the sector.
According to MAN, if the 2023 Electricity Act is fully implemented, it can re-write the story by stabilizing the supply of electricity to infant manufacturers and aiding their planning for optimal delivery,
Also, MAN highlighted the empowerment of the state governments and private investors, which will increase the adoption of renewable energy and the reformation of the governance structure of the power sector. All these, according to MAN, can drive investment, improving electricity access and fostering economic growth.”
