Zheng Wei, the Managing Director of Tiget Business International Limited, recently spoke about how some manufacturing companies in Nigeria are taking advantage of improved gas supplies in the Lagos area to increase their production levels, especially during times when the electricity grid frequently fails.
Wei, who oversees one of Nigeria’s largest shoe manufacturers, shared this information in a statement released to the media on Friday. He pointed out that although manufacturers in Nigeria face many challenges—like keeping up with regulations, dealing with economic downturns, rising prices, and changes in currency values—the biggest issue they face is the lack of reliable electricity.
According to the Manufacturers Association of Nigeria, many manufacturers in Nigeria are having a hard time getting foreign currency to buy the raw materials they need. They are also struggling with high energy costs, which make up nearly 40% of their overall expenses. Wei emphasized that the electricity supply from the national grid is often insufficient and unstable, leading to production delays and interruptions that negatively affect their overall productivity.
To tackle this problem, Tiget has looked for alternative energy solutions. They partnered with a company called Clarke Energy to set up a gas power plant that can generate 6.6 megawatts of electricity. This plant sources its gas from a supplier located along the Lagos-Ibadan Expressway. Clarke Energy assessed Tiget’s existing power setup, designed the necessary engineering plans, and oversaw the installation of the gas plant. They also provide ongoing maintenance for the facility.
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Wei explained that this gas plant produces cleaner electricity and helps the company save a lot of money compared to using diesel fuel. It has also improved the efficiency of their operations, making them more sustainable.
Yiannis Tsantilas, the Managing Director of Clarke Energy for sub-Saharan Africa, highlighted the importance of having reliable, cleaner, and cost-effective energy solutions for manufacturers. He noted that as companies in the manufacturing sector switch to these better energy alternatives, they can achieve sustainable productivity. However, he emphasized that the success of these initiatives depends on the quality of the leadership and decision-making within the companies.
Tsantilas praised the leadership at Tiget Business International Limited for their excellent management, which has added value to the Nigerian economy. He pointed out that their efforts have made quality footwear more accessible in local markets, reduced unemployment, and encouraged further investments in Nigeria.
Tiget currently imports polyvinyl chloride, a key material for making their footwear, and they plan to grow their business by establishing local offices and subsidiaries throughout Nigeria and Africa. Wei expressed confidence in Nigeria’s potential as an economic hub in Africa, noting its stable democratic environment and a young, talented population. He believes that fashion is an essential part of Nigeria’s cultural identity, and Tiget aims to create high-quality footwear that enhances and influences the country’s fashion scene.
Wei also commented on the challenges posed by high fuel prices, which have affected logistics and the transportation of goods and people. He noted that as a business, Tiget cannot pass on all these extra costs to their distributors and customers without risking their competitiveness in the market.
To help manufacturers cope with Nigeria’s power challenges, Wei suggested that the government should consider setting up refineries to provide essential materials for the plastic industry and ensure a stable supply of gas. He argued that these steps would promote industrial growth and contribute to economic stability in Nigeria.
