- Daily-Need Group cut energy generation costs by 60% by switching to a 1MW gas plant.
- The move to gas power reduced production downtime and equipment damage caused by unreliable electricity.
- The new gas plant supports the company’s commitment to lower greenhouse gas emissions and environmental responsibility.
Daily-Need Group has announced a strategic shift to gas power to address rising electricity tariffs and frequent power outages in Nigeria.
Mr Oluwatosin Jolayemi, Group Managing Director, explained that high energy costs and an unreliable power supply drove the switch. The company turned to gas and diesel generators to reduce production downtime and operating costs.
Jolayemi highlighted that Daily-Need Group faced significant losses due to erratic power supply before this change. The inconsistent electricity damaged sensitive machinery and affected returns on investment.
The company decided to move off the national grid to tackle these issues. Daily-Need Group installed a 1MW gas plant, supplied and serviced by Clarke Energy Limited. This transition transformed the company’s operations.
The new gas power plant enabled the company to achieve significant cost savings. Jolayemi reported a reduction of at least 60 per cent in energy generation costs. The shift also led to fewer production interruptions and lower greenhouse gas emissions.
Jolayemi emphasized that the decision was aimed at cost savings and environmental responsibility. Running the gas plant supports Daily-Need’s commitment to social and environmental responsibility.
The move comes as many Nigerian manufacturers struggle with high energy costs and the devaluation of the Naira, which has increased the cost of importing essential production materials.
Jolayemi noted that the switch to gas power reduced production downtime, particularly for machines heavily reliant on electronic systems. The stable power supply minimized the risk of equipment damage and improved overall efficiency.
Daily-Need Group’s investment in the gas plant also aimed to maintain competitiveness in a challenging market. The company can focus more on its core strengths and strategic goals by reducing energy costs.
The decision to use Clarke Energy Limited for installation and service support was key to cutting production costs. This partnership allowed Daily-Need to stay ahead in a competitive industry.
Jolayemi’s comments underline the broader trend among Nigerian manufacturers exploring alternative energy sources. With power supply issues affecting many businesses, gas power becomes a more viable option.
The transition to gas power provided financial relief and aligned with global trends toward cleaner energy. Daily-Need Group’s approach highlights the importance of adapting to energy challenges while supporting sustainability.
As Nigerian manufacturers face ongoing economic pressures, more businesses will likely explore reliable, cost-effective energy solutions. Daily-Need Group’s experience serves as a model for others in the industry grappling with similar issues.
Daily-Need Group’s shift to gas power addresses high energy costs and unstable power supply. The company’s move led to significant savings and improved operational efficiency while supporting its environmental goals.