• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Friday, August 29, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Gas Transition Reducing Cost Of Manufacturing In Nigeria, Says Firm

by Chika Izuora
4 months ago
in News
Share on WhatsAppShare on FacebookShare on XTelegram

 

Advertisement

Despite the consistent market demand for essential goods, Nigerian manufacturers face significant power challenges.

However, transitioning from the unstable grid supply to gas plants, is helping manufacturers reduce the cost of doing business.

Executive director at Kitchen Vegetable Oil, Ifeyinwa C. Udeagbala, said the high cost of grid power and the instability of the electricity supply, which poses a risk to their factory equipment, influenced the company’s decision to switch to gas plants, relying only on diesel gensets as a backup.

The company, Kitchen Vegetable Oil Limited, a subsidiary of Udeagbala Holdings, a manufacturer and marketer of FMCG and industrial goods, including skincare brands, edible oils, multipurpose soaps and PVC pipes for home and industrial use, made the switch two years ago. It is based in Aba, Abia state.

RELATED

Maltina Rolls Out New Pet Bottles, Pledges To Nourish 1m Students

Maltina Rolls Out New Pet Bottles, Pledges To Nourish 1m Students

2 hours ago
PICTORIAL: VP Shettima Represents Tinubu At Ex-VP Sambo Son’s Wedding In Kano

PICTORIAL: VP Shettima Represents Tinubu At Ex-VP Sambo Son’s Wedding In Kano

2 hours ago
ADVERTISEMENT

To tackle its power challenges, the company partnered with Clarke Energy to integrate a 1.7 megawatt (MW) Jenbacher gas plant, sourcing pipeline gas from one of Nigeria’s foremost IOC downstream subsidiaries and compressed natural gas (CNG) from virtual pipeline suppliers.

Clarke Energy provided the front-end engineering designs, supplied the gensets, commissioned the plant, and currently provides after-sales services.

“The gas plant is generating cleaner electricity and significantly reducing our operational costs compared to diesel,” Udeagbala said. “It has addressed efficiency issues, making our operations more sustainable.”

ADVERTISEMENT

Yiannis Tsantilas, Managing Director of Clarke Energy for sub-Saharan Africa, emphasised the importance of sustainable and cost-effective energy solutions for manufacturers.

“Globally, the availability of raw materials and reliable and affordable energy are important drivers in industrialising any economy. In Nigeria, many manufacturers experience these challenges, especially the issues of irregular grid supply and high energy costs, which constitute almost 40 per cent of their expenses,” said Tsantilas, citing data from the Manufacturers Association of Nigeria (MAN).

“The visionary leadership at Kitchen Vegetable Oil Limited recognised the need to utilise available gas as an alternative fuel, allowing them to self-generate a more sustainable power supply to lower their cost per product and increase their competitiveness in the market,” he added.

Udeagbala said the manufacturing challenges are multifaceted, “The challenge is not just about meeting market standards; it is about navigating the economic and logistical barriers that make production and distribution difficult.”

These include inflation, fluctuating raw material costs, low purchasing power of consumers, and limited access to affordable capital, which hamper business expansion.

“For a business like ours, which requires heavy upfront investment in raw materials, equipment, and labour, we need more sustainable bank interest rates. The high cost of borrowing erodes profit margins, making growth challenging,” she said.

The prevalence of counterfeit industrial materials and difficulty in sourcing spare parts, often imported with long delays and high costs, adds to operational challenges.

Nigeria’s complex tax environment, with multiple agencies imposing levies, adds another layer of burden. While some states have streamlined processes, inconsistencies and the overall tax burden, including VAT, corporate tax, and import duties, strain already thin margins.

Despite these hurdles, Udeagbala expressed a commitment to continuing operations, driven by a sense of legacy and responsibility toward employees. The company, with over 200 employees, views job creation and stability as essential, particularly considering Nigeria’s high unemployment rate.

She said the company has plans to expand into neighbouring African markets. “We are reviewing regional economic policies and how to scale borders complexities: delays at checkpoints and the risks associated with transporting perishable goods,” Udeagbala said.

Udeagbala said their success had been due to their employees’ resilience, prioritising raw material quality, long-term relationships with trusted suppliers and service providers, and rigorous testing protocols to maintain product quality. The company said it has rejected shipments of substandard materials to protect product quality and equipment.


Join Our WhatsApp Channel

Nigerians can now earn US Dollars monthly by acquiring domains cheaply and reselling for profits up to $18,000 (nearly ₦30Million). Beneficiaries include professionals, entrepreneurs, civil servants and more. Click here to start.


SendShare10170Tweet6356Share
ADVERTISEMENT
Previous Post

Evaluating Transparent Pricing Models To Maximize Currency Gains

Next Post

Anene Sylvia Unveiled As Brand Ambassador For Newsland Media Services

Chika Izuora

Chika Izuora

You May Like

Maltina Rolls Out New Pet Bottles, Pledges To Nourish 1m Students
Business

Maltina Rolls Out New Pet Bottles, Pledges To Nourish 1m Students

2025/08/29
PICTORIAL: VP Shettima Represents Tinubu At Ex-VP Sambo Son’s Wedding In Kano
News

PICTORIAL: VP Shettima Represents Tinubu At Ex-VP Sambo Son’s Wedding In Kano

2025/08/29
Tinubu Excited As Nigerian Babalola Emerges As Rotary International President
News

Tinubu Excited As Nigerian Babalola Emerges As Rotary International President

2025/08/29
currency exchange process
Business

How To Calculate Pips In Forex And Other Important Tips For Traders

2025/08/29
Amid Succession Crisis In NIWA, Boat Mishap Claims 30 Lives In Kebbi
News

JUST-IN: Many Feared Dead As Sokoto Records Another Boat Tragedy

2025/08/29
2023: Power Shift To South Non-negotiable, Say Jonathan’s Kinsmen
News

Jonathan Hasn’t Ruled Himself Out Of 2027 Presidential Contest, Says Ex-President’s Cousin

2025/08/29
Leadership Conference advertisement

LATEST

Maltina Rolls Out New Pet Bottles, Pledges To Nourish 1m Students

PICTORIAL: VP Shettima Represents Tinubu At Ex-VP Sambo Son’s Wedding In Kano

Tinubu Excited As Nigerian Babalola Emerges As Rotary International President

How To Calculate Pips In Forex And Other Important Tips For Traders

Tottenham Sign Simons From RB Leipzig For £52m

JUST-IN: Many Feared Dead As Sokoto Records Another Boat Tragedy

Jonathan Hasn’t Ruled Himself Out Of 2027 Presidential Contest, Says Ex-President’s Cousin

Court Jails Businessman 6 Months For Cocaine Trafficking

Lagos Records 8,692 Domestic, Sexual Violence Cases In 1 Year

PICTORIAL: Obasanjo Visits Alaafin Amid Row With Ooni

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.