The newly passed 2023 Electricity Act is expected to benefit the country’s manufacturing industry, according to the Manufacturers Association of Nigeria.
Nairametrics reported that the lack of proper access to electricity has long been a problem for Nigerian manufacturers, according to a statement from MAN.
However, thanks to the Act, manufacturers will have easier access to electricity. It is anticipated that adding renewable energy as an additional capacity will help the manufacturing sector perform better still.
MAN stated: “The newly inaugurated President Tinubu’s administration has started the process by signing the Electricity Act 2023, which is intended to be a game changer to address multiple limits within the sector, in light of the enormous energy deficit caused by the long-standing problems in the power sector.
“We are pretty hopeful that this move would enhance the influx of manufacturing foreign direct investment, improve the performance of the sector, and raise the sector’s contribution to the economy because the new Act appropriately solves the difficulties in the power sector.
MAN claimed that Nigeria, with its enormous population and rising need for energy from homes and companies, has one of the largest electricity markets in the world.
Stating some advantages of the act, MAN noted that it is possible to address infrastructure gaps in states without increasing taxes on businesses if the internally generated income that each state stands to gain from the decentralization of the power sector is handled wisely.
“The ability of private manufacturing enterprises to produce their own electricity would unleash enormous investment in backward integration operations, which will undoubtedly be a major enabler of energy security within the industry. Energy is the most essential input for manufacturers.”
The 2023 Electricity Act, according to MAN, has the potential to completely rewrite history by stabilizing the supply of electricity to baby makers and assisting their planning for the best delivery.
A further point made by MAN was the empowering of state governments and private investors, both of which will hasten the adoption of renewable energy sources and change the way the electricity sector is governed.