The intractable power supply situation in the country has forced manufacturers to devise alternative means of providing electricity to industrial clusters
even as the price of natural gas has hit the rooftop. The high cost of power has forced scores of industrial manufacturing plants across the country to close shop leading to mass retrenchment of workers.
LNG and Compressed Natural Gas form sources of alternative power to local producers owing to failure of the national grid to meet their demands. But the switch to LNG and CNG has remained a mirage due to high cost, infrastructure and policy framework. To address their electricity challenges, local manufacturers had unveiled a special purpose vehicle called, MAN Power Development Company, to provide electricity to industrial clusters. Self-generated electricity reportedly hit N119b in 2019.
“The idea is to be able to put manufacturers in clusters and arrange for power, which can be supplied through hydro, solar, gas and will remove the cost of manufacturers getting involved in producing their own power, “ said Reginald Odia, chairman of Economic Policy Committee of MAN and director of the MAN Power Development Company.
They equally argued that the government addresses the categorisation of manufacturers’ gas intake as commercial users in the natural gas pricing gazette, instead of Strategic Industrial Sector. Chairman of Manufacturers Association of Nigeria Gas Group, Dr. Michael Adebayo explained that many operators continue to contend with high prices, very low level of gas pressure and outages from distribution companies, as many of them combine gas and grid supply to check costs and availability.
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