10 February 2014, Lagos – The Manufacturers Association of Nigeria (MAN) has blamed gas shortage for the delay in the take-off of the power plants project it initiated with some energy service providers.
Chairman, Infrastructure Committee, MAN, Reginald Odiah said the initiative conceived some years ago would have become a reality if not for gas challenge.
He spoke against the backdrop of gas shortfall in the sector that has seen power generation drop to less 3, 674.9 mega watts (Mw).
Odia lamented that as the the problem persists, manufacturers and other operators are experiencing crisis.
He said: “From the beginning, we did not intend to have our own power plants. This informed our decision to partner with companies that would provide us power plants for growth. A lot of people are prepared to help to get the plants on board, but gas problems have made it impossible.
“I cannot say the extent to which the inability of the power generation to get gas to fire their turbines and further improve electricity generation and distribution has affected the manufacturers. The reason is because I do not have information or data on each of the manufacturers operating in the country.”
But what I know is that the development is having ripple effects on us. We need electricity to function well, and failure to get the required energy has prevented manufacturing companies from producing optimally.’’
He said the only alternative source of energy available to the manufacturers is generators, noting that the issue has eaten deep into the cost of production.
‘’ Since most of the manufacturing outfits rely on generators to operate, they have no option than to get it to survive. This is having cumulative effects on production of goods and services, cost of living and other economic variables. We hope that gas problem would be addressed soon and that the 15 power generation companies (GENCOs) and power distribution companies (DISCOs) would function well,’’ he added.
– The Nation