How Electricity Generation from 3 Hydropower Stations Affected Nigerian Manufacturing Sector in Q3 2018

The Nigerian manufacturing sector is the sector with the highest number of markets having a number of companies, according to the National Bureau of Statistics. The markets include oil Refining, Cement, Food, Beverage and Tobacco, Textile, Apparel and Footwear, Wood and Wood Products, Pulp, Paper and Paper Products, Chemical and Pharmaceutical Products, Non-Metallic Products, Plastic and Rubber products, Electrical and Electronics, Basic metal, Iron and Steel, Motor vehicles and assembly and others.

Like companies in other sectors and markets, companies in manufacturing sector cannot be exonerated from various challenges retarding their growth and contributions to economic growth. Over the years, power has remained the critical problem affecting companies’ productivity and revenue generation. A recent report from the country’s bureau of statistics indicates that “the power generation statistics for Q3 2018 reflected that a total average of 78,917 MWh of energy was generated daily by power stations. Daily energy generation attained a peak of 90,197 MWh on the 16th of August 2018. Thermal stations generated a peak of 85,948 MWh on 10th July, 2018 while the hydro stations attained a peak of 30,164 MWh on the 28th of August, 2018.”

The report further notes that the lowest daily energy generation of 57,357 MWh was attained on 8th of July 2018. These were the situations in Q3 2018 in which manufacturing companies were expected to utilise their means of production towards economic growth during the period. Infoprations expands the insights further through an analysis of the electricity generated from three hydropower stations –Jebba, Kainji and Shiroro. Initial analysis reveals that electricity consumption connected with the constant and current basic prices of the manufacturing sector by 22.3% and 21.3% respectively.  When the prices were analysed along with the three stations, results show that constant and current basic prices of the sector connected with the Shiroro station negatively. Positive connection was recorded for Jebba and Kainji stations.  

These insights indicate that Nigerian government needs to intensify its efforts towards adequate power generation from the three stations, especially Shiroro station. This is imperative for the sector to make significant contributions to the economic growth every quarter.