Manufacturers have appealed to the Government and all stakeholders in power sector to address inadequate electricity supply in the country said the menace is seriously hinder their productivity and profitability.
Addressing journalists on the sideline of events marking 30 years of Lubcon lubricant manufacturing and blending company in Ilorin on Thursday, its group managing director, Adesoji Fagbemi, said that challenge of electricity power supply has impacted on prices of commodity and profitability.
“There is electricity power challenge affecting manufacturing industry in the country. The capacity of electricity power being generated is not adequate. We share power among other sectors of the economy. It’s even so difficult to achieve eight hours supply daily. We spent more than N93 million in a quarter on diesel because we run several manufacturing points. We had to purchase a 1,000 kva generator. We also expended about N157 million on 33 kva dedicated line to get 23 hours power supply by co-opting other neighbouring companies just to cope with the huge expenses. Thus, profitability is affected”, he said.
Moving forward, the Lubcon executive said that the company has plan to invest in alternative energy to tackle power challenges in the country in partnership with consortia of organizations on gas production in Ajaokuta gas park.
“Hopefully, when operational, it would solve power generation and distribution in the country and boost trade and investment, especially among micro, small and medium enterprises (MSMEs) in and around the state”.
He also said that the group of companies was planning to go into
agriculture towards serving as platform for agric processing and export for MSMEs with establishment of an industrial agro park for entrepreneurs to maximize their potential in agro processing.
“We’ve been supporting agriculture before now as we supply lubricants for tractors, machine tools, etc”
Mr. Fagbemi, who called on security operatives to improve on their logistics to tackle economic saboteurs who engage in adulteration of lubricants and engine oil in the country, said that regulators are sometimes incapacitated to battle people behind adulteration.
He also appealed to commercial banks to assist manufacturing industry with adequate financing, describing sourcing funds from banks as herculean. “We need support from banks, but those in banking sector continue not to be forthcoming”.
Also speaking, the managing director of the company, Mr. Taiye Williams, said that it has been 30 years of top notch lubricants production hitherto dominated by foreigners before it came into existence, adding that the company supplies to such countries as Ghana, Niger, Benin Republic, South Sudan, Liberia, and Ethiopia.