The Manufacturers Power Development Company Limited established under the Manufacturers Association of Nigeria, has raised concerns over the unsustainable energy costs facing manufacturing firms, particularly those in the Band A electricity category.
The firm has taken proactive steps to address this issue by providing sustainable energy solutions to 10 companies, as part of a larger initiative aimed at reducing power costs and improving energy efficiency for manufacturers across the country.
The acting Managing Director of MPDCL, Oweh Mba-Sam revealed this development in Lagos recently, emphasizing that the collaboration with these 10 companies marks the initial phase of a broader project intended to bridge the energy gap and make energy more affordable for the manufacturing sector.
“If you are on Band A, you know what the cost of power is. Then if you are manufacturing and you are on Band A, you are in serious trouble. And the Manufacturers Association of Nigeria cannot have a power company while members are groaning with Band A,” Mba-Sam asserted, highlighting the urgent need for alternative solutions.
He further revealed that MPDCL is spearheading an initiative to encourage manufacturers to adopt renewable energy solutions, with a particular focus on solar power, to address the ongoing energy challenges in the country.
Mba-Sam said the company is advocating a “Power as a Service” model, which allows manufacturers to install energy equipment at no initial capital cost, with companies only required to pay an agreed tariff lower than current grid rates.
“You sign it, and it is installed for you and will be there for 20 years or 15 years depending on the agreement,” Mba-Sam explained.
He emphasized that the renewable energy model being championed by MPDCL is crucial for helping companies avoid the steep costs associated with relying on power from the national grid.
He noted that the first phase of the MPDCL project is already supporting ten companies, each receiving a minimum of 1 MW of power, totaling about 10 MW. This initiative marks a significant step in addressing the energy shortfall faced by manufacturers.
Looking ahead, Mba-Sam explained that MPDCL’s ultimate goal is to systematically bridge Nigeria’s energy gap by expanding the model to more companies across the country, thus providing a sustainable and cost-effective energy alternative for manufacturers.
“The strongest challenging point is finance. Once you get finance, you can do almost everything you want to do. So first we sought finance offshore as single digits. Right now we have 10 companies on our list with a minimum of 1 MW per company. That’s a lot. That’s about 10 MW of the line.
“Our idea is to continue this process until we see the gap start closing until it evaporates,” he added.
President of MAN, Francis Meshioye also highlighted that MPDCL’s initiatives are in line with the broader goals of the upcoming Manufacturers Energy Security Summit, set to take place from November 19-21 in Lagos.
The summit will focus on tackling energy challenges and exploring sustainable energy solutions for the manufacturing sector.
Meshioye disclosed the summit will bring together industry leaders, policymakers, and energy experts to discuss sustainable energy solutions for industrial growth.
“It is important that we address these challenges frontally,” Meshioye said, noting that the summit will serve as a platform for collaboration between public and private stakeholders.
“By addressing energy security, we can unlock the full potential of our industries,” he added.
It was previously reported that the Manufacturers Association of Nigeria has intensified its advocacy for reducing electricity tariffs for manufacturers.
This includes taking legal action against the Nigerian Electricity Regulatory Commission and electricity distribution companies. However, the lawsuit was ultimately unsuccessful.
