The new Electricity Act, according to the Manufacturers Association of Nigeria (MAN), will result in a sharp decrease in the cost of alternative energy for its members, which will increase their profit margin. The sum total MAN members spent on alternative energy increased from N77.21 billion in 2021 to N144.47 billion last year.
However, if properly implemented, the Electricity Act 2023 has the potential to significantly transform the manufacturing sector by lowering the cost of alternative energy, lowering the cost of electricity, improving the inflow of foreign direct investment (FDI), and improving manufacturing performance, among other things.
The signing of the Electricity Act 2023, according to Ajayi-Kadir, is a significant step in the right direction, adding that “after the removal of subsidy, this is another reflection of the boldness and commitment of the new administration towards the diversification and de-centralisation of the power sector. He pointed out that the success of the Act largely rests on its effective implementation.
