MAN Spends N72.6bn Annually On Diesel

The Manufacturers Association of Nigeria (MAN)  recently said it spent N72.6 billion annually on diesel to power its generating plants.

Chairman, Electronics and Electrical Sectorial Group of MAN, Mr Reginald Odia,  made this known at a town hall meeting in Lagos, recently.

He said that the heavy cost incurred on diesel was due to the irregular power supply by the Power Holding Company of Nigeria (PHCN).

Odia said that though members of MAN paid PHCN bills of over N120 million monthly for electricity consumption, PHCN merely supply the association less than 1,000 MW.

This, he noted, was lesser than the 3,000MW electricity required by MAN, adding that the cost of energy had affected the business of the members of the association.

Odia added that with 40 per cent of the cost of doing business in Nigeria, the country “is currently the highest in the continent”.

He said the development explained why companies were leaving Nigeria for other parts of Africa “where it is easy to do business”.

On the new electricity tariff bill, Odia said that members of the association were not consulted by the Federal Government when the new price was fixed.

According to him, government ought to have considered of the input of MAN being powerful stakeholders in the electricity sector.

National Vice President, Nigerian Chambers of Commerce, Industries Mines and Agriculture (NACCIMA), Alhaji Ahmad Rabiu, said Nigerians would pay the new tariff, if power supply was stable and sustainable.

“If we pay the proposed tariff, where will the money go? .If you tell me where it will go I will encourage the hike and I will be encouraged to pay it,” he said.