Nigerian Manufacturers Spent ₦1.34 Trillion On Power- Bakrin

The Executive Secretary of the National Sugar Development Council, (NSDC), Mr. Kamar Bakrin, has announced that Nigerian manufacturers spent an estimated ₦1.34 trillion generating their own electricity as the cost of power, credit and logistics have continued to put them at a disadvantage.

Bakrin disclosed this at the technical session of the 17th National Council on Industry, Trade and Investment, NCITI, in Enugu.

Bakrin disclosed that the factories in Nigeria pay far more than competitors for the three basic inputs of manufacturing.

He cited the example of a plant in Aba and one in Ho Chi Minh City to support his point, adding “while industrial electricity costs about eight US cents per kilowatt-hour in Vietnam and 10 cents in China, in Nigeria, it is 15 cents on the grid and up to 30 cents with diesel.

“Every factory in Nigeria is running a second, unwanted business as a private power station,” he added.

Bakrin also revealed that working capital costs 27 to 35 per cent in Nigeria, compared to 9 per cent in Vietnam and 3 per cent in China.

Speaking on logistics, Bakrin said Nigeria ranks 88th out of 139 countries on the World Bank’s Logistics Performance Index, while Vietnam is 43rd and China 19th.

He emphasized that despite a market of 230 million people and duty-free access to 1.4 billion under AfCFTA, manufacturing contributes just eight per cent of GDP, while capacity utilisation stands at 57.7 per cent.

He mentioned production as proof that fixing input costs works, adding that it turned Nigeria from an importer to a top-ten global exporter.

He opined that Nigeria must now choose between competing for the African market or conceding it, stressing that he presented four resolutions to the Council to reprice the factory floor.