Energy accounts for 40% of production cost in manufacturing sector–MAN

The Manufacturers Association of Nigeria (MAN) says energy accounts for 40 percent of total production cost in manufacturing.

Segun Ajayi-Kadiri, acting director-general of MAN, who made this disclosure at a workshop organised by the Energy Efficiency Network (EEN)for industries in Nigeria in Lagos,  identified efficient energy consumption as a critical factor for sustainable and profitable business.

High energy cost is one of the greatest challenges confronting the industrial sector. The others are insecurity, bad roads and high interest rate which combine to impede manufacturers’ inability to compete effectively in the global market.

Also speaking at the workshop, Anthony Njenga, NBC country manufacturing director, noted that, “Energy efficiency is embedded in the company’s strategy to protect the environment and be a sustainable business, hence the company is pleased to participate in this pilot Energy Efficiency Network (EEN) for industries inNigeria by NESP.”

The pilot Energy Efficiency Network project, hosted by Nigerian Bottling Company Limited (NBC), was organised by the Nigerian Energy Support Programme (NESP) in collaboration with MAN and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

The successful implementation of the initiatives discussed at the EEN is expected to go a long way to increasing productivity, improving competitiveness, supporting sustainability, reducing environmental carbon footprints, while helping industrial enterprises to reduce the already high cost of production due to energy cost.

Companies that took part in the EEN, which ran from February  to August, received technical support to implement an energy management system based on ISO 50001, the international standard for energy management, which was recently adopted and published by the Standards Organisation of Nigeria (SON) as a Nigerian Industrial Standard (NIS/ISO 50001). Participating companies included: BELPapyrus Limited, Conserveria African Limited, Cormart Nigeria Limited and Vitafoam Nigeria Plc.

A statement said energy efficiency is a major agenda for NBC both from sustainability and cost perspectives. “NBC has established itself as a key player in the Nigerian non-alcoholic beverage industry and is making huge investments in Nigeria, to drive world class operations to better satisfy its customers, consumers, while adding value to its communities and other stakeholders”.

Daniel Obi