High production cost: MAN harps on green energy investments

The Chairperson of the Manufacturers Association of Nigeria Export Promotion Group (MANEG), Odiri Erewa-Meggison, has called for the urgent need for Nigeria to invest in greener and more cost-efficient energy solutions to solve the rising cost of energy in the country.

  Speaking during the 3rd National Conference on Non-Oil Export, organised by the Nigerian Export Promotion Council (NEPC), she noted that green energy has great potential to tackle rising production costs, stating that the recent N75bn financing arrangement by the Bank of Industry is a positive development in this regard. 

This funding package offers single-digit interest rate loans for manufacturers, which is expected to help them access more affordable capital and reduce production costs. 

She however stated that Nigeria’s exports must meet international standards to avoid rejection, while enhancing awareness around compliance requirements for specific markets, such as the prohibition of certain pesticides in exported produce.

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Erewa-Meggison urged Nigeria’s diplomatic missions and global banking networks to facilitate market entry and acceptance for local goods. 

Regarding incentives, she emphasised the critical role of the Export Expansion Grant (EEG) in helping Nigerian exporters remain competitive globally. Erewa-Meggison stressed the importance of timely disbursements and adequate budget allocations for the EEG program, asserting that this would signal the government’s commitment to supporting local manufacturers. 

“The Export Expansion Grant is a vital incentive that has helped our exporters overcome cost challenges and maintain competitiveness. However, persistent backlogs and reliance on promissory notes for grant payments have undermined the program’s effectiveness,” she explained. 

 “We need the government to prioritise timely disbursements and reliable budget allocations for the EEG to demonstrate their support for the manufacturing sector,” she added. The MANEG Chairperson also recommended reverting to export credit certificates instead of the current system to provide faster access to grant funds. “Transitioning back to export credit certificates would enable our exporters to have quicker and more streamlined access to the incentives they need to succeed in global markets,” she stated.