Some Nigerian manufacturing companies are leveraging improved gas supply around Lagos to ramp up production amidst incessant grid collapses. This development is boosting their operations, according to Zheng Wei, Managing Director of one of the country’s largest footwear manufacturers.
Wei, who leads Tiget Business International Limited—incorporated in Nigeria in 2020 and based in Sagamu—highlighted that while manufacturers face numerous challenges, including regulatory compliance, economic downturns, inflation, and currency fluctuations, power remains the most critical.
According to data from the Manufacturers Association of Nigeria (MAN), Nigerian manufacturers are struggling to secure foreign exchange for raw material imports and are also burdened by high energy costs, which constitute almost 40% of their expenses.
“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.
In response, Tiget sought alternative solutions and partnered with Clarke Energy to integrate a 6.6-megawatts Jenbacher gas power plant, sourcing gas from a supplier along the Lagos-Ibadan Expressway. Clarke Energy conducted a thorough assessment of Tiget’s existing power infrastructure, delivered front end engineering designs (FEED), and supervised the installation of the gas power plant. The company also provides maintenance support for the plant.
“The gas plant is producing cleaner electricity and saving us significant operational costs compared to diesel,” Wei noted. “It has addressed efficiency issues, making our operations more sustainable.”
Yiannis Tsantilas, Managing Director of Clarke Energy for sub-Saharan Africa, emphasised the importance of resilient, cleaner and cost-effective energy solutions 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.”
Tiget currently imports polyvinyl chloride (PVC)—a primary feedstock for its footwear products and aims to expand its footprint by driving backward integration and establishing offices and subsidiaries in key markets across Nigeria and Africa.
“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,” Wei said.
He said the Nigerian market is robust. With a population of over 220 million people, it has a unique Commerce and Trade system compared to other countries. Its local market has vibrant business patronage.
“The high fuel cost has affected logistics and the movement of goods and people,” Wei explained. “As a business, we cannot pass on the entire cost difference to our distributors and customers without risking competitiveness.”
Wei advocates for setting up refineries to provide feedstock for plastic industries and ensuring a stable gas supply to help manufacturers navigate Nigeria’s power challenges. Such measures, he argues, would foster industrial growth and economic stability in the country.
