∆ Segun Ajayi-Kadir, display Manga cement bag .
The Manufacturers Association of Nigeria, says the Food, Beverage & Tobacco sector spent the highest on energy among ten sectors profiled in the second half of 2024.
MAN, in its analysis of Electricity Supply and Alternative Energy Costs for the period under review, said that companies in the food and beverage sector recorded N229.41 billion in alternative energy spending, up from N182.76 billion in 2023.
This was followed by the Chemical & Pharmaceutical energy costs doubled to N208.68 billion.
The Non-Metallic Mineral Products sector’s energy costs increased by 33.7 percent to N118.49 billion, and the Textile, Apparel & Footwear industry saw a fourfold increase, reaching N26.45 billion in 2024, compared to N6.97 billion in 2023.
Segun Ajayi-Kadir, the Director-General of MAN, commented that the electricity supply situation for industries improved in 2024, with the average daily supply increasing to 13.3 hours per day, up from 10.6 hours in 2023.
He emphasized that on a half-on-half basis, electricity supply rose from 11.4 hours per day in H1 2024 to 15.2 hours in H2 2024.
He said:” However, electricity tariffs surged by over 200 percent for Band A consumers, significantly increasing manufacturing costs.
While power availability improved, many manufacturers still faced frequent outages and costs as the country witnessed 12 national grid collapses and this remained a major concern.
In response to unreliable grid power and increases in prices of Diesel and PMS, manufacturers’ total expenditure on alternative energy sources surged to N1.11 trillion, a 42.3 percent increase from N781.68 billion in 2023. “