Cost Challenges Facing Nigerian Manufacturing Industries Using Generating Sets as Main Source of Power Supply

Abstract

Most manufacturing industries in Nigeria are currently experiencing hardship due to the high increase in price of diesel for fuelling the generating sets as alternate power supply because of epileptic power supply in the country. This has led to many industries relocating outside the country, loss of job and increment in price of goods and services. The aim of the study is to examine the threat facing the Nigerian manufacturing industries using generating sets as their alternate source of power. Some industries were considered in this research and in which some of the challenges facing the industry were itemized. Part of these problems includes; cost of fuelling and maintaining the generators, down time by the generating sets when there is break down of equipment and facilities, inability to satisfy the customer’s needs on time due to irregular power supply.  This research established the amount of fuel used by each of these industries visited to power their generators daily, weekly, monthly and also yearly, compared with the amount paid to Distribution Company (public utility). But these industries couldn’t depend solely on the public utility power for their operations due to the epileptic power supply in the country. Hence, the necessity for a steady power supply using public utility is very important thereby reducing the cost of fuelling of generating set and cost of production of goods and services.