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Manufacturers urged to embrace gas,alternative energy
Ayo Olesin
Nigerian manufacturers have been advised to rise to the challenges posed by energy constraints by reconfiguration of the plant system for gas usage and research in the possibility of usage of renewable energy on the long term.
Energy expert, Dr Diran Fawibe said at a manufactuers� forum in ABeokuta, that reconfig-uring plants to receive gas direct from supplies will help stem and control the cost of energy supply and consumption.
He pointed out that upgrading the performance of energy consuming equipment in factories will produce a new breed of gas equipment and processes that would offer significant benefits of the plant and the nation as a whole.
He also said that given the limited amount of petroleum and electricity available, there was need for industrial consumers to engage in serious energy housekeeping and audit with a view of eliminating waste.
Fawibe, who is Chairman of International Energy Services Limited, pointed out that the manufacturing sector had experienced low productivity over the years due to epileptic electricity supply, and forced them to contend with high operating cost as a result of high cost of energy input.
This, he pointed out, had led to uncompetitive prices of locally manufactured goods and Nigerians settling for imported items, often used. He said the situation called for creative consideration of options open to manufactured, who are suffering from the cumulative effects of a badly managed energy industry due to government dominance and control.
He said the ultimate solution to the energy problem was the liberalisation and deregulation of the electricity and petroleum industries, which he urged manufacturers to support, though, short run challenges in terms of price increases was likely to result.
He, however, said that with the consensus of stakeholders including government, business and labour the benefits of a liberalised economy and energy sector with a human face could be realised. Though prices could climb, Fawibe said that with efficiency and competition under and supervision of an effective regulatory system, industries and indeed the economy would prosper.
He said that Nigeria could learn from countries such as the United states which introduced market reforms in the energy sector pointing out that US deregulated gas prices in 1987 but witnessed only a three per cent increase in prices due to huge investments in gas infrastructure. This which led to reduction in the cost of transportation and distributing natural gas through the nation�s pipeline and utility system.
He observed that countries in Asia and Latin America had also benefited from liberalisation and deregulation of gas prices, which are predicated the building of basic infrastructures for gas and energy product supply to industries.
The Punch, Monday July 19, 2004
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