Manufacturers adapt to grid instability with gas-powered solutions  

Manufacturers in Nigeria are leveraging alternative energy sources to sustain production amid frequent grid collapses and soaring operational costs. The Managing Director of Tiget Business International Limited, Zheng Wei, has revealed how improved gas supply is enabling some manufacturing companies in Lagos and its environs to mitigate power challenges.

Speaking in a statement on Friday, Wei, whose company operates one of Nigeria’s largest footwear manufacturing plants, highlighted the critical role of reliable power supply in the manufacturing sector. He noted that while Nigerian manufacturers face a slew of challenges ranging from economic downturns and inflation to currency instability electricity remains the most pressing issue.

“The electricity supply from the grid is simply inadequate and unstable, which has often led to production downtimes and disruptions impacting our overall productivity and output,” Wei said.

CableNews24 notes that Tiget Business International, based in Sagamu and incorporated in 2020, partnered with Clarke Energy to install a 6.6-megawatt Jenbacher gas power plant, which uses gas sourced from suppliers along the Lagos-Ibadan Expressway. The project was designed to enhance operational sustainability and reduce energy costs, according to Wei.

The Managing Director of Clarke Energy for sub-Saharan Africa, Yiannis Tsantilas, underscored the importance of resilient and cleaner energy for manufacturers. “Today, as the manufacturing sector switches to resilient, cleaner, and cost-effective power generation alternatives, it will witness sustainable productivity. However, this success will be determined by the functional excellence of the decision-making team.

“The leadership team at Tiget Business International Limited has demonstrated excellence, resulting in value addition to the Nigerian economy. For example, it has improved accessibility to quality footwear in the local markets, reduced the unemployment rate, and kept its focus on deepening investments in the country. It is a remarkable effort,” Tsantilas said.

Energy costs remain a significant burden for Nigerian manufacturers, constituting nearly 40 percent of their expenses, according to data from the Manufacturers Association of Nigeria (MAN). This is exacerbated by limited access to foreign exchange for importing raw materials, high inflation, and rising logistics costs.

Wei explained that Tiget’s gas power plant has enabled the company to produce cleaner electricity at lower costs compared to diesel-powered alternatives.

Beyond energy solutions, Tiget is pursuing backward integration to reduce dependency on imported raw materials. The company imports polyvinyl chloride (PVC) as a primary feedstock for its footwear products but plans to deepen investments in local sourcing and expand its footprint across Nigeria and Africa.

Wei emphasized the broader economic benefits of Tiget’s operations, including job creation and improved access to affordable, high-quality footwear in Nigeria. “We see Nigeria as the regional economic hub in Africa. It boasts a stable democracy and a vibrant, talented young population. Fashion plays a central role in Nigeria’s rich cultural identity, and we aim to innovate high-quality footwear that enhances and influences the country’s fashion industry,” he said.

Tsantilas also commended Tiget’s leadership for its strategic investments, noting that the company’s efforts have reduced unemployment and added value to the Nigerian economy.

However, Wei called for policy interventions to support industrial growth. He advocated for the establishment of refineries to provide feedstock for plastic industries and ensure a stable gas supply.

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