on challenges of energy costs on members of the association, President, MAN, Francis Meshioye, said energy cost was gulping between 35 to 40 per cent of manufacturers’ total costs.
Meshioye said more multinational manufacturers were already making plans to exit Nigeria due to the toll energy cost was taking on business profitability. He said, “We rejected the hike in electricity tariff because, in the first instance, energy cost is very high for manufacturers, particularly those who consume much, like steel manufacturers. It takes an average of 35 to 40 per cent of their total costs.
“Any increase in electricity tariff makes it harder on us. The harder it is, the harder it will be for consumers. When this is so, it means that the demand for products will drop. Like I said in my previous interview, the profit margin will be low.” The significant increase in alternative energy costs came despite several efforts by manufacturers to address the issue of skyrocketing energy costs.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.