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Shutdown by GENCOS will impact negatively on economy—Entrepreneurs

Some entrepreneurs in Ibadan on Monday said the reported threat of  shutdown of power supply by Generating Companies (GENCOs) will negatively impact on the economy.

 

A cross section of entrepreneurs,  who spoke with the News Agency of Nigeria (NAN), expressed  worry over the effects of a shutdown on the economy.

Miss Oyindamola Akosile, the Director of COA Clothing, said the cost of production would go up if there was a shutdown of power supply.

“It is not a good idea  because it is going to really have a negative effect on the economy, especially for people engaged in activities  which require power.

“For instance, I am a fashion designer; some of my equipment and machines need electricity and the national grid has been serving me well for now.

“If the shutdown should happen, then it means my job will be affected negatively; I would have to look for an alternative power supply.

“The implication of this would be that my finance will be affected and the cost of producing clothes will be high while  the consumers will suffer in the end also,” Akosile said.

Mrs Motunrayo Aroloye, Chief Executive Officer, Gold Event, said many Small and Medium Enterprises (SMEs) would be adversely affected by a shutdown.

She said some might be forced to close down their operations due to their inability to secure an  alternate power supply.

“If the GENCOs should shutdown power supply, then lots of businesses will experience a downturn.

“As it is now, they are struggling under the irregular power supply regime; though some are still able to maximise profit under this present situation that had sustained  increase in power generation.

“But a total shutdown of supply will translate to a hike in prices  of goods and services.

“It is costly for individuals to generate their own power; the cost of running generator, fueling it and maintenance will force many businesses to close shop and further affect the stability of the economy,” Aroloye said.

Others,  who spoke on the issue, said the government should be proactive in addressing the myriads of challenges facing GENCOs to avoid a  shutdown.

NAN recalls that the Association of Power Generation Companies, the umbrella body for GENCOs, said the available generation capability had experienced a drop due to various factors.

It listed such factors as gas constraints, on-going maintenance by some gas suppliers and low load demand by distribution companies and  which had  resulted in reduced generation by  power plants. (NAN)

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