Manufacturers spend N73bn annually on diesel MAN
Written by Mohammed Shosanya, Lagos  Monday, 28 May 2012

Manufacturers Association of Nigeria has said  its members spend  N72.6 billion annually on Automated Gas Oil (AGO), otherwise called diesel to power their generating sets.

Mr. Reginald Odia, Chairman Electronics and Electrical sectoral group of MAN, who disclosed this weekend at the Ministry of Power’s town hall meeting with stakeholders in Lagos, said the heavy cost incurred on diesel is due to the epileptic power supply by the Power Holding Company of Nigeria (PHCN).

Odia said members of MAN pay PHCN over N120 million monthly for electricity consumption but this could not be justified as the power company merely supplied them less than 1000MW which is less than the 3000MW of electricity demand by the manufacturers association.

Energy cost accounts for 40 percent of the cost of doing business in Nigeria making it the highest on the continent. This explains why companies are leaving Nigeria for other parts of Africa, he said.

Odia also spoke on the new electricity tariff bill to kick off on June 1, where he said his members were not consulted by the Federal Government when the new price was being fixed. He also said if empowered, his members could produce  in-country the energy saving bulbs the government planned to distribute to Nigerians as part of energy conservation devices.

Also speaking, the National Vice President of the Nigerian Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Alhaji Ahmad Rabi’u said Nigerians will pay the new tariff if power supply is stable and sustainable.

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