A Review of the Nigerian Energy Industry

NERC, MAN fine-tune plans to stabilise power supply to industries

06 October 2015, Lagos – The Nigerian Electricity Regulatory Commission (NERC) and key industrialists in Nigeria under the aegis of the Manufacturers Association of Nigeria (MAN) on Tuesday pushed forward an ongoing discussion to upgrade the quantity of electricity supplied to industrial clusters across the country.

Power transmission station
Power transmission station

According to both parties, parts of the discussion include the development of micro electricity grids to service industrial clusters in the country. NERC and MAN in this regards inaugurated a task team to fine-tune the processes for the establishment of the grids.

The task team which comprises eight men from both sides was inaugurated in Abuja by the Chairman of NERC, Dr. Sam Amadi, who noted that the team evolved from the need for the country’s electricity sector to effectively support her efforts at industrialisation, by increasing the amount of energy supplied to industries.

Also at the inauguration was the President of MAN, Dr. Frank Udemba Jacobs who explained that energy costs accounts for 40 per cent of cost of production for industries in Nigeria. Jacobs, in this regards stated that the new effort could have a far-reaching impact on the cost of production in the country.

Amadi however said that NERC had in the past made critical regulations to encourage off-grid electricity supply to industrial clusters in the country. He stressed thus that the partnership with MAN will reactivate such regulations and help develop social and regulatory frameworks to boost industrialisation.

“Few months we thought about how to support industrialisation by increasing energy supply to industries thereby reducing the cost of doing business. I do know that energy cost accounts for 40 per cent of cost production which is a huge drag on profitability, industrial capacity as well as global competitiveness of Nigerian manufacturers,” Amadi said.

He further explained that: “NERC has always thought about how we could unleash the industrial potentials by solving the power supply needs of the industries. We established the embedded generation regulation, the independent distribution network regulation and the independent transmission network regulation.

“These three critical regulations were aimed at helping to deal with providing some kind of modular power both for off-grid and for rural clusters. And towards the end of last year we started thinking of how we can innovate these regulations to help industrial clusters.”


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