With High Power Tariff, Supply Instability, Manufacturing Firms Turn to Gas

The Group Managing Director of Daily-Need Group, producers of pharmaceuticals and food products, Mr. Oluwatosin Jolayemi, has said that with high electricity tariff and the unstable nature of power supply, manufacturers are now turning to gas to power their businesses.

He stated that the challenge with the national grid was making gas more attractive for manufacturers because of its capacity to cut downtime, greenhouse emissions, and especially bring down operating costs.

Recounting his organisation’s experience before moving off the national grid and onto gas and diesel generators, Jolayemi noted that, “We also experienced an irregular power supply that caused a lot of losses on return on investments.”

He said Nigerian manufacturers grappling with the Naira devaluation, which has increased the cost of importing critical feedstock for production were now switching to gas plants.

He stated, “Many manufacturing firms grapple with frequent power outages, which predisposes machines to damage. A world-class factory with state-of-the-art manufacturing and laboratory equipment influenced Daily Needs’ decision to migrate to the gas plant supplied by Clarke Energy, which made it possible to reduce production downtime due to machine breakdowns, especially for the highly sensitive electronic-dependent machines.”

Jolayemi said the company acquired a 1MW gas plant, adding that to remain focused on its strength, Daily-Need Industries contracted Clarke Energy Limited to carry out both installations and service support to cut down on the cost of production and remain competitive.

He said the decision has yielded an optimal return on investments, noting that “With the installation of the gas power plant, we have been able to save at least 60 per cent on the cost of energy generation”.

He maintained that running the gas power plant has supported the company’s drive to be a socially and environmentally responsible manufacturer.