Friday, August 15, 2008

power failure or failure of power

The Governor of Niger state in Nigeria claimed yesterday that the collapse of the private sector in the North was as a result of an international conspiracy. He claims that the textile and other manufacturing plants were sold to the Asians who close them down, so they could import their own goods from Asia....astonishing .


A question come to mind why is it that a product manufactured in Taiwan, shipped to Lagos, duty paid, transported to Niger State can still be cheaper than a product manufactured in Niger State, a quick answer is POWER.

Diesel in Nigeria is now N160 a liter. How can a local manufacturer who uses 12 hours Generator survive? simple he pushes the power cost to the local consumers so local goods become more expensive, people don’t buy local goods, which causes the local factories to close down and the countries that have cheaper power can then export their now cheaper goods to us. considering we have the same informal labour costs as Asia.

Manufactures Association of Nigeria has estimated that power add 35-55% to the cost of goods locally. Michelin closed last year because of Power, that coy was a key employer of labour in the Niger Delta.

So Oga Governor, it’s not an international conspiracy, it’s a local Power (no pun intended) failure. and while we are at it can we please declare this Emergency on power.

So let’s stop blaming the Asians (we are allowed to blame the Chinese sha), its our problem w can fix it

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