Nigerian Manufacturers Cut Output Amid Electricity Crisis

Manufacturers in Nigeria are facing severe challenges as electricity supply plummets, with the national grid generating only 3,940.53 megawatts due to the shutdown of several generating units caused by inadequate gas supply. This situation has forced companies like Moppet Food, led by CEO Roberta Edu Oyedokun, to scale back production and rely on expensive diesel and solar backup systems.

The grid's capacity has been critically impacted, with gas delivery falling to approximately 650-700 million standard cubic feet per day, only 40-45% of the required amount. The National Association of Small Medium Enterprises, represented by Solomon Aderoju, reports that widespread power outages are pushing businesses towards costly alternatives.

The government has approved a payment of roughly N185 billion to settle outstanding gas supply debts, but long-term structural reforms in the power sector remain elusive. The ongoing gas supply issues stem from chronic debts within the sector, affecting the operational capacity of generating units.