S/East companies shutting down over rising energy costs — MAN
Manufacturers Association Raises Alarm Over South-East Industrial Decline
The Manufacturers Association of Nigeria (MAN) has expressed serious concerns regarding the decline of manufacturing activities in the South-East, attributing the situation to rising energy costs and limited access to finance. The warning comes as many companies in the region face potential shutdowns.
Lady Ada Chukwudozie, chairman of MAN for Anambra, Enugu, and Ebonyi states, made these remarks during a stakeholders’ industry conversation held recently in Awka, Anambra State. The forum aimed to address pressing issues related to electricity regulation, billing transparency, and decreasing industrial productivity in the area.
Chukwudozie noted that the few manufacturing plants still operational are running at less than 30 percent of their installed capacity due to escalating electricity tariffs and high energy expenses. She emphasized that the current operating conditions prompted the roundtable discussion among stakeholders, given the sector’s vital role in economic growth and job creation.
“Without urgent measures to confront these challenges, industrial activities in the South-East could further decline, significantly impacting employment and regional economic stability,” Chukwudozie stated.
She called for reforms in the power sector, advocating for transparency, accountability, and measurable performance standards, which should include agreed-upon electricity supply hours and compensation mechanisms when supply falls short.
Chukwudozie also urged regulatory authorities to enhance oversight of electricity providers and improve power supply to industrial clusters across the South-East.
Participants at the forum expressed that manufacturers are increasingly struggling with rising production costs, compounded by unreliable electricity supply and the growing price of alternative energy sources. They indicated that without affordable and stable energy, more companies might be forced to reduce operations or cease altogether.
In a keynote address, Dr. Sam Amadi, former chairman and chief executive officer of the Nigerian Electricity Regulatory Commission (NERC), urged South-East governments to implement deliberate policies that prioritize electricity supply to industrial sectors. He also called for pricing frameworks that would incentivize manufacturers to expand production and foster growth.
The meeting brought together manufacturers, regulatory bodies, and industry stakeholders to discuss actionable solutions aimed at revitalizing industrial output and addressing ongoing power challenges affecting South-East businesses.
