The Manufacturers Association of Nigeria (MAN) has stated that high energy cost is still a problem the manufacturing sector in Nigeria is facing, with electricity alone taking over 35% of manufacturers’ cost structure.

Speaking at the 4th Adeola Odutola Lecture and Presidential Luncheon to round off the activities marking the 52nd Annual General Meeting of MAN, President of the Association, Francis Meshioye, called upon the federal government to wade into the tariff rift between manufacturers and the electricity Distribution companies of Nigeria.

He cried that high energy costs and frequent hike in electricity tariffs were compounding the binding constraints of the manufacturing sector.

Mr Meshioye said: “It is unfortunate that the Distribution companies (DisCos) persistently disconnected manufacturing facilities from the national electricity grid, despite payment of current electricity charges on existing tariff, and against court injunction prohibiting them.

“We have consistently maintained that manufacturers will struggle with a rate above 100% increment in the electricity tariffs.

“Electricity costs alone accounted for more than 35% of an average manufacturer’s cost structure.

“The government should wade in to address the issue of electricity tariffs for the manufacturing sector to thrive.”