Experts have said the use of technology and efficient energy resources will help in minimizing environmental impact, energy consumption and production costs while maximizing profitability.
They posit that to achieve energy efficiency in Nigeria, the use of technology is vital in achieving industrial energy efficiency, reduce cost and have an environmental impact by reducing carbon footprints, fossil fuels and conservation through recycling and reuse practice.
The National Programme Coordinator at UNIDO, Oluyomi Banjo, said globally, industries account for one-third of total energy consumption and for almost 40 per cent of worldwide CO2 emissions, thus, the International Energy Agency (IEA) estimates that industries will need to reduce their direct emissions globally by about 24 per cent compared to the 2007 levels to meet climate goals.
Banjo stated this during a Capacity-Building Workshop for Media Stakeholders under the Resource Efficiency and Cleaner Production (RECP) and Industrial Energy Efficiency (IEE) project, recently in Abuja.
“The need to reduce energy consumption, environmental degradation and resource depletion by industries in emerging economies is especially evident, since global growth in industrial production since 1990 has been dominated by emerging economies like India and China, both of which accounted for over 80 per cent of increased industrial production during this period,” he said. He explained that UNIDO integrated Industrial Energy Efficiency and Resource Efficiency and Cleaner Production into one project and Nigeria will be the first country globally that will implement both programmes together and if it is implemented successfully they will replicate around the world.
“This project will address, to a good extent, the questions on how industries can improve their efficiency, increase profitability, operate at international best standards, comply with regulations and maintain improved relationships with policy makers,” he said.
Banjo noted that the project’s focus on energy audits, the adoption of renewable energy, and energy-efficient technologies which will help industries reduce their carbon footprints while simultaneously lower production costs. The Director, Manufacturers Association of Nigeria (MAN) and the National Technical Coordinator of GEF-UNIDO IEE&RECP Project Nigeria, Dr Oluwasegun Osidipe, said energy is not just limited to the industrial sector in Nigeria alone but that it is a challenge globally.
“The intensity of the impact of this challenge of the industrial sector, particularly manufacturing, is pretty huge. Before now, based on surveys by members, it usually used to be between 30-35% of the total overhead cost of industry that goes into the cost of generating power,” he said.
“But now, we have over 45% of the overhead cost of producing a particular product going into payment bills for electricity. For example, in 2023 alone, manufacturers spent over N183 billion on alternative sources of power. What that means, that is excluding several million it also paid for electricity received from the grid.”
He said the amount of money they are spending on alternative energy, if they have energy at the right path, they can divert that and invest it into their production processes by way of expanding production.
Osidipe advised that the most possible thing they should do is to start thinking of alternative sources of energy.
“Gone are the days that we used to believe that solar cannot power industries. Now we have solar systems, even power backup systems that can power some industries effectively.
“So, going that way to a larger extent, not only will it reduce the cost of spending on energy, but it will also improve the environment,” he said.
He said the transition from fossil to renewable energy alone provides a system where the production system will become cleaner than when they are using fossil fuels.
MAN’s National Project Coordinator, Oladipo Jacob, said there is a need for the right reports and communication about energy efficiency and sustainability in the media as it would encourage industries to adopt best practices and individuals to adopt alternative sources of energy.
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