![]() On backward integration and energy security, energy is the most vital input of manufacturers. The cost savings will directly improve profit margin and promote further manufacturing investments. For manufacturers, investment in renewables like solar will not only promote a cleaner climatic environment but ensure that energy consumption is cost efficient. The new Act seeks to open greater investment opportunities in renewable energy. If properly utilized, such huge revenue can bridge the infrastructure deficits in many states without imposing further tax burden on manufacturers. Therefore, the amount of Internally Generated Revenue that each state stands to accrue from the decentralization of the power sector is delightful. Nigeria’s electricity market is one of the biggest in the world because of its massive population and growing demand for energy by households and businesses. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualize a cost –reflective tariff considering the healthy price competition it will bring between the states and private investors. If fully implemented to the letter, the new Electricity Act will see to the drastic fall in the cost of alternative energy incurred by our members and we expect this to boost our profit margin.Īs an advocacy Association, MAN has always pushed for the need to charge a cost-reflective electricity tariff to avoid extortion of our members. Last year, total amount spent by our members on alternative energy surged from N77.21 billion in 2021 to N144.47 billion. Notwithstanding, the Electricity Act 2023, if well implemented, promises to be a major game changer for the manufacturing sector through some of the following favourable implications: The unfavourable situation has positioned the country among the worst countries to do business with a rank of 171 out of 190. As the largest energy access deficit in the world, Nigeria’s shortage of electricity supply has been identified as a hindrance to the profitability of manufacturers with an annual economic loss valued at about N10.1 trillion or 2 percent share of the country’s GDP. No doubt, the current power supply is apparently inadequate to satisfy the energy requirements of the manufacturing sector and the entire population. States, private companies and individuals are now legally permitted to generate, transmit and distribute electricity.Įxcept for Lagos, Kaduna and Edo with established electricity market laws, electricity in other states will still be regulated by NERC. Major high points from the Electricity Act are as outlined: Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), in response to the new Electricity Act 2023, stated that in replacement of the Electricity and Power Sector Reforms Act 2005, the Electricity Act 2023 is aimed at providing an all-inclusive framework which will serve as a guide to the decentralization of the power sector in order to encourage private investment and build a competitive electricity market. The assent of the Electricity Act 2023 on the 9th of June is a more crucial milestone for the operations in the power sector, sequel to the constitutional amendment signed during the last days of the Buhari-led administration which allows states to generate, transmit and distribute their own electricity However, the newly inaugurated President Bola Ahmed Tinubu has set the ball rolling by signing the Electricity Act 2023 which is meant to be a game changer to address the numerous constraints within the sector. STOP THE USE OF HARD DRUG FOR SEX! IT KILLS!!!.Īccording to the 2021 report by the International Energy Agency, Nigeria’s 86 million is the largest number of people in the world without access to electricity. ![]() MEDICAL CONSULTANTS REVEALED HOW MEN CAN NATURALLY AND PERMANENTLY CURE POOR ERECTION, SMALL AND SHAMEFUL MANHOOD, AND INFERTILITY ISSUES WITHOUT SIDE EFFECTS.
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