Grid Inefficiency Driving Manufacturers To Gas-powered Energy Sources — Jolayemi

The group managing director of Daily-Need Group, Oluwatosin Jolayemi, has said that the high electricity tariff and the unstable nature of the power supply from the national grid have made gas plants far more attractive for manufacturers.

He said the switch to gas was helping in cutting downtime, emissions, and operating costs.

Jolayemi said that before moving off the national grid and onto gas and diesel generators, “we also experienced an irregular power supply that caused a lot of losses on return on investments.”

Nigerian manufacturers grappling with the Naira devaluation which has increased the cost of importing critical feedstock for production, were switching to gas plants like the solution provided by Clarke Energy to cut down on the cost of production and remain competitive.

Jolayemi said the company acquired a 1 MW gas plant and to remain focused on its strength, contracted Clarke Energy to carry out both installations and service support, a decision he said has yielded an optimal return on investments.

“With the installation of the gas power plant, we have been able to save at least 60 per cent on the cost of energy generation,” he said.

He also said running the gas power plant has supported the company’s drive to be a socially and environmentally responsible manufacturer. “With cleaner energy generation, we have minimised carbon emissions from our facilities, which has fostered a more cordial relationship with environmental regulation agencies and other stakeholders interested in environmental sustainability. These relationships also translate to cost savings in obtaining some permits and licenses,” he said.

For his part, the Managing Director of Clarke Energy in Nigeria and Sub Sahara Africa, Yiannis Tsantilas, expressed, “The partnership with the Daily-Need Group aligns with Clarke Energy’s drive to extend value to various manufacturers in Nigeria.

“Resilience and innovation are the keys to maintaining the lead in supporting the provision of finished goods and consumer products that are part of our daily lives. Making products such as pharmaceuticals and food available in our local market directly impacts medical care affordability, quality of life, and cost-per-product. In addition, relieves pressure on the global supply chain, sustains life, and improves the sustainability of fast-moving consumer goods.

“Daily Needs Group has continued to focus on providing quality lifecare products to its customers across Nigeria. Of course, this could only have been driven by extraordinary leadership and a commitment to deliver value to Nigerians.”

Many manufacturing firms grapple with frequent power outages, which predisposes machines to damage. A world-class factory with state-of-the-art manufacturing and laboratory equipment influenced Daily Needs’ decision to migrate to the gas plant supplied by Clarke Energy, which made it possible to reduce production downtime due to machine breakdowns, especially for the highly sensitive electronic-dependent machines, Jolayemi said.

The manufacturing outfit sources gas through a piped gas line from a major gas supplier. “We are installing a PRMS for our bottled gas (CNG) as a backup gas supply. The PRMS will be commissioned to avoid disruptions due to power outages during periods of low gas supply from our major suppliers,” he said.

Daily Needs Industries, with over 200 full-time employees, began operations in the 1960s as a pharmaceutical retailer and has grown into a large-scale manufacturer. It has moved from producing the Penicillin Ointment it first produced in 1973 to over 20 product categories.

“Surprisingly, we have found the Nigerian market to be largely quality-focused. The perception of quality is a critical factor to product adoption and ultimately the market performance of new products,” he stated about the Nigerian market.