The Manufacturers Association of Nigeria (MAN) has raised alarm over the worsening state of manufacturing activities in the South-East, warning that rising energy costs and poor access to finance are forcing many companies in the region to shut down.
Chairman of MAN for Anambra, Enugu and Ebonyi states, Lady Ada Chukwudozie, disclosed this during the MAN South-East Stakeholders’ Industry Conversation held in Awka, Anambra State.
The forum was convened to address concerns surrounding electricity regulation, billing transparency and declining industrial productivity across the region.
Chukwudozie said the few factories still operating were doing so at less than 30 per cent of installed capacity due to soaring electricity tariffs, high energy costs and limited access to credit facilities.
According to her, the harsh operating environment informed the decision to convene the stakeholders’ roundtable, stressing that the manufacturing sector remains critical to economic growth, industrialisation and job creation.
She warned that unless urgent measures are taken to address the challenges confronting manufacturers, industrial activities in the South-East could further deteriorate, with serious implications for employment and regional economic stability.
“The manufacturing sector cannot thrive in an environment of uncertainty,” she said.
She called for reforms in the power sector to be driven by transparency, accountability and measurable performance standards, including agreed electricity supply hours, actual delivery levels and compensation mechanisms where supply consistently falls below expectations.
Chukwudozie also urged regulatory authorities to strengthen oversight of electricity providers and improve power supply to industrial clusters across the South-East.
Stakeholders at the forum expressed concern that manufacturers were increasingly struggling to cope with escalating production costs, worsened by unreliable electricity supply and the rising cost of alternative energy sources.
They noted that without affordable and stable energy, many more companies could either scale down operations or shut down completely.
In his keynote address, former Chairman and Chief Executive Officer of the Nigerian Electricity Regulatory Commission, NERC, Dr. Sam Amadi, urged governments in the South-East to adopt deliberate policies aimed at prioritising electricity supply to industrial clusters.
Amadi also advocated pricing frameworks that would encourage manufacturers to expand production and invest in growth.
The stakeholders’ meeting brought together manufacturers, regulators and other industry players to explore practical solutions to revive industrial output and tackle persistent power challenges affecting businesses in the region.
Article S/East companies shutting down over rising energy costs — MAN Live On NgGossips.
