Operators in the Nigeria’s real sector (Manufacturing) spent over N250 billion on sourcing alternative energy in 2017.
According to data from the Manufacturers Association of Nigeria, its members, having survived the worst recession in decades, spent more on generating alternative energy than they did in 2016. The amount spent on the alternative power increased from N179 billion as at 2016 to over N250 billion by the end of 2017.
President, MAN, Dr. Frank Jacobs, explained that government was expected to increase its allocation for infrastructure, especially power supply.
He said, “Assuming we had adequate and stable supply of reasonably priced electricity, the manufacturing sector would be able to shift such resources that had been expended on providing alternative energy into increasing production.
“Government should do more on electricity generation to assist manufacturers. The easiest way to get Nigerian firms productive is to ensure they access power, deploy technology, which would make access to raw materials easier and faster.”
Jacobs also observed the low purchasing power of Nigerians, saying this had led to high record of unsold goods in 2017.
While sectors like food and beverages, chemical and pharmaceuticals, electrical and cable manufacturing witnessed an improved capacity utilisation, the wood, paper publishing and non-metallic products recorded poor performances.
“Most of our members produced but couldn’t sell their products. There is nothing that can be done. The disposable income of the average Nigerian has been eroded. We are trusting that government will continue to work on reducing inflation and making forex available while the policies to ease business dealings in Nigeria are effectively implemented,” he said.
Meanwhile, the MAN boss has assured that the operators are hopeful, noting that the fact that some are growing and some still have challenges is a good indication.
He added that with adequate and effective implementation of the policies that government had put in place, the future was bright for the sector.
The MAN president, however, expressed concern that the government had not put in place a monitoring and evaluation framework that would enable stakeholders to monitor the implementation of some of its policies in a manner that they would positively impact on the manufacturing sector.
