Market News

• Partners MAN to drive energy efficiency

Despite the importance of energy to Nigeria’s economy, low access to modern energy services remains one of the principal constraints to the country’s economic development, the United Nations Industrial Development Organisation (UNIDO) has said.

 The UNIDO National Programme Coordinator, Environment & Energy, Oluyemi Banjo, said the economic impact of Nigeria’s unreliable grid operations is estimated at $28 billion.

 He said Nigeria has one of the highest energy poverty rates in the world, with 47 per cent of her population not having access to grid electricity and those who do have access, face regular power cuts.

 Banjo spoke during a ‘Public-Private Dialogue Session for Chief Executive Officers (CEOs) and Relevant Government Agencies on the Global Environment Facility (GEF)-UNIDO Industrial Energy Efficiency (IEE) and Resource Efficient Cleaner Production (RECP) Project’ held yesterday (Wednesday) in Lagos.

The GEF-UNIDO IEE and RECP Project was aimed at driving the adoption of energy efficiency by industries in order to increase production efficiency by reducing energy use and by implication, cost; enhance environmental and social management, and optimize the use of natural resources.

The dialogue session was organised in partnership with Manufacturers Association of Nigeria (MAN), and was exclusively for CEOs of companies operating within five sectors including Food and beverage, Basic Metal, Wood, Textile & Lather sectors, and the Petrochemical sub-sector.

 Banjo, in his welcome remarks, said lack of reliable access to electricity is one of the major constraints to the private sector, according to World Bank’s ‘2020 Doing Business Report’. He, therefore, said improving power sector performance, particularly in the non-oil sector, will be crucial to foster economic growth.

 “Globally, industries account for one-third of total energy consumption and for almost 40 per cent of worldwide CO2 emissions. The International Energy Agency (IEA) has emphasized that industries will need to reduce their current direct emissions globally by about 24 per cent in comparison to 2007 levels.

 “The need to reduce energy consumption, environmental degradation, and resource depletion by industries in emerging economies is especially evident…,” Banjo said, noting that the GEF-UNIDO IEE and RECP project will, to a large extent, address the question on how industries can improve their efficiency and increase profitability.

The UNIDO National Programme Coordinator also said the project will address how industries operate at international best standards, comply with regulations and maintain improved relationship with policy makers.

 Banjo said a pilot financing RECP-IEE scheme has been executed through the Bank of Industry (BoI), while issues around ISO 50000 and 14001 are executed through Standards Organisation of Nigeria (SON).

 “We hope to support not less than 75 industries across five sectors. We will develop the capacity of the Organised Private Sector (OPS) and develop not less than 300 Nigerian RECP-IEE experts, he announced. 

 MAN President Otunba Francis Meshioye in his welcome address said the implementation of the GEF-UNIDO IEE and RECP Project marked the beginning of a defining moment in manufacturing industries’ collective journey toward sustainable practices that not only drives growth but also preserve the planet for generations to come.

 Meshioye, who was represented by Prince Felix Oba Okojie, said the challenges posed by energy efficiency are multifaceted, encompassing not only economic considerations but also environmental impacts and social implications.

 He, however, embedded within the challenges are opportunities to innovate, optimize, efficiently utilize resources and to lead the way toward a more sustainable future.

 “As we embrace the principles of energy efficiency, we will not only be reducing our carbon footprints, but also be mitigating environmental degradation and saving energy cost.

 “In return, the efficiency, competitiveness and resilience of our operations will be enhanced to meet the increasing demands of our ever-evolving global marketplace,” Meshioye said.

 The session, which considered the project implementation status, also provided the platform to deepen conversation on the impact of relevant energy and environment related policies on the continued survival of industries.

 It also discussed the role of CEOs and regulators in ensuring the successful actualisation of the project’s set objectives. In addition, CEOs of selected industrial enterprises shared experiences and testimonies on the benefits of adopting IEE & RECP methodologies in manufacturing operations.