According to the Manufacturers Association of Nigeria (MAN), the inadequate electricity supply in the country has been identified as a major obstacle to the profitability of manufacturers. This issue results in an annual economic loss of approximately N10.1tn, which represents around two percent of the country's Gross Domestic Product. MAN highlighted that this unfavorable condition has placed Nigeria among the least business-friendly countries, ranking 171 out of 190.

In response to President Bola Tinubu's approval of the Electricity Bill, the manufacturers expressed their views in a statement. According to MAN, the existing power supply is insufficient to meet the energy needs of both the manufacturing sector and the entire population.

However, the association acknowledged that the implementation of the Electricity Act 2023 has the potential to significantly transform the manufacturing sector.

The statement stated, "As an advocacy association, MAN has consistently emphasized the importance of implementing a cost-reflective electricity tariff to prevent the exploitation of our members. Fortunately, we are pleased to note that this new Act aligns perfectly with our objectives, as it will facilitate the realization of a cost-reflective tariff by fostering healthy price competition between states and private investors."

The inconsistent power supply in the country stands out as a significant factor leading to the relocation of some of our members. However, if the new Act effectively tackles the challenges in the power sector, we maintain a strong belief that such progress will promote the influx of manufacturing Foreign Direct Investment (FDI), enhance the sector's performance, and amplify its contribution to the overall economy.

MAN also conveyed a sense of optimism that if utilized appropriately, this substantial revenue could help address the infrastructure gaps in numerous states without imposing additional tax burdens on manufacturers.