By Bisola Adeyemo
The Manufacturers Association of Nigeria (MAN) has said that the shortage of power in the production sector in 2020 gulped N81.9 billion as manufacturers we’re left to seek alternative power sources.
According to a News Telegraph reports that the expenditure on alternative energy sources increased by N20.53 billion from N61.31 billion recorded in 2019.
The Manufacturers Association of Nigeria, the MAN, stated this in its executive summary of the economic review of the second half of 2020.
The MAN DG explained in the report that electricity supply to manufacturers in terms of energy information generated from the sector showed consent improvement in electricity supply to the manufacturing sector.
The survey emphasized that the Federal Government needed to address other frontline challenges plaguing the power sector, including gas shortages, limited distribution network, limited transmission lines, outdated,ed equipment and electricity theft as it is affecting the cost of production and also brewing hyperinflation.
“Energy information generated from the sector has shown consent improvement in electricity supply to the manufacturing sector.
” In the 2nd half of 2020, electricity supply from the distribution companies to the sector increased to 12 hours on daily average from 10 hours per day on the average recorded since the 1st half of 2019. Average daily power outage had constantly averaged 4 times per day.
“However, expenditure on alternative energy in the 2nd half of 2020 increased to N57.75 billion in the 2nd half of 2020 from N34.70 billion recorded in the corresponding half of 2019; thus, indicating N23.05 billion or 66.4% increase over the period.
“It also increased by N33.59 billion or over 100% when compared with N24.16 billion recorded in the 1st half of the year. Expenditure on alternative sources of energy in the sector stood at N81.91 billion in 2020 as against N61.38 billion recorded in 2019.
“The increase in alternative energy expenditures in the sector was attributed to the general high inflationary pressures in the economy. However, specifically, the increase in the petrol pump price exerted,” Ajayi Kadir said.
According to the report, the real sector of the economy has been the biggest sector suffering inadequate power supply most in the country’s power sector with production daily basis from lack of electricity supply.
Meanwhile, according to MAN, unsold inventory increased by 43.5 per cent in 2020 compared to 2019.
“Inventory of unsold manufactured goods was totaled at N577.61 billion in 2020 as against N402.42 billion recorded in 2019.
It added that the increase in inventory in the period was attributable to the general low consumption and renewed imports in the economy as global economies generally opened after months of lockdown.