A Review of the Nigerian Energy Industry

NERC, MAN plan increased electricity supply to industries

08 October 2015, Lagos – The Nigerian Electricity Regulatory Commission in collaboration with the Manufacturers Association of Nigeria has inaugurated a task team for the development of micro-electricity grid for industrial clusters.


The Chairman, NERC, Dr. Sam Amadi, said the task team was formed in order to effectively support industrialisation by increasing energy supply to industries.

According to him, energy cost accounts for 40 per cent of the total cost of production in Nigeria, adding that the inauguration of the task team will have a far-reaching effect on reducing the cost of doing business in Nigeria.

He said, “Few months ago, 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 of production which is a huge drag on profitability, industrial capacity as well as global competitiveness of Nigerian manufacturers.”

To further support industries, Amadi said the commission established the embedded, independent distribution network and the independent transmission network regulations.

He added, “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 on these regulations in order to help industrial clusters. We found very ready and willing partner in MAN.”

Amadi noted that the task team would help both organisations think around the regulatory, technical, financial and social issues that had to do with providing steady electricity to industries through the micro-grid.

The President, MAN, Dr. Frank Udemba, said the major problem of industrialisation in Nigeria had always been lack of electricity.

He said, “Power accounts for 40 per cent of our cost of production and therefore any initiative or innovation that will assist us in reducing this amount will be highly welcome. We have a number of industrial clusters in the country. Our major challenge is electricity.

“We would like the committee to complete the work within one week. We will come up with a document that we are going to present to the Federal Government and the Presidency. So I appeal to the committee to please work hard and get the job completed within one week.”


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