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From Scholastica Hir, Makurdi
Nigerian manufacturers spent N2.46 trillion on alternative electricity generation between 2024 and 2025, with expenditure rising by N240 billion in one year, as the Manufacturers Association of Nigeria (MAN) unveiled a cost reduction initiative aimed at easing the growing energy burden on industrial operators.
The expenditure rose from N1.11 trillion in 2024 to N1.35 trillion in 2025, representing an increase of approximately 21.6 per cent, reflecting the rising cost of keeping factories operational amid unreliable public electricity supply.
The figures were disclosed by Chairman of Keystone Bank Limited and Regional Chairman of MAN for Anambra, Enugu and Ebonyi states, Lady Ada Chukwudozie, at the Manufacturers Energy Security and Energy Efficiency Summit in Lagos.
Chukwudozie said the enormous expenditure was depriving manufacturers of resources that could otherwise be invested in machinery, raw materials, staff salaries, business expansion and other productive activities.
Against this backdrop, MAN unveiled the Industrial Energy Cost Reduction and Clean Energy Adoption Programme (IECRECAP), designed to provide manufacturers with more affordable, reliable and sustainable electricity through structured financing, renewable energy solutions and improved energy efficiency.
Speaking in a presentation titled “Manufacturers’ Pain Points – Energy Cost: Imperative for Regional Manufacturing Leadership in Accessing Structured Finance,” Chukwudozie identified the high cost of electricity as a major obstacle to industrial growth and competitiveness.
She said manufacturers were increasingly compelled to divert substantial financial resources from productive activities into alternative power generation because of unreliable electricity supply from the national grid.
To address the challenge, she advocated investor-backed financing arrangements that would enable industrial operators to access cleaner and cheaper electricity without committing substantial upfront capital.
Chukwudozie cited a 1.5-megawatt rooftop solar project at Nkpor, Anambra State, as an example of how structured financing could help manufacturers reduce electricity expenditure while preserving working capital.
She projected that the project would deliver energy savings exceeding 50 per cent, with smart metering, remote monitoring and energy dashboards providing real-time information on consumption, system performance and cost savings.
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According to her, wider adoption of similar financing arrangements across industrial clusters would enable manufacturers to overcome the difficulty of independently funding energy infrastructure while creating investment opportunities in sustainable power projects.
Speaking on the initiative, MAN President, Dr. Ifeanyi Okoye, said rising energy costs, unreliable grid electricity and manufacturers’ increasing dependence on self-generation had continued to undermine industrial productivity and competitiveness.
He identified rooftop solar systems, battery storage, captive gas generation and smart energy management as practical solutions for reducing electricity expenditure and improving production efficiency.
Okoye stressed that manufacturers required financing arrangements tailored to industrial energy projects to enable them to invest in alternative electricity infrastructure without placing additional pressure on their financial resources.
He maintained that access to reliable and affordable electricity would strengthen local manufacturing capacity, reduce production costs and improve the competitiveness of Nigerian products in regional and international markets.
The MAN president added that sustainable industrial energy solutions would free resources currently committed to expensive electricity generation for investment in production, expansion and job creation.
The programme is being implemented through the Manufacturers Power Development Company Limited (MPDCL), in collaboration with the Nigerian Energy Support Programme, implemented by GIZ, the Federal Ministry of Power and other partners.
A statement issued at the summit explained that the initiative would combine rooftop solar installations, battery storage where necessary and energy efficiency interventions to reduce manufacturers’ dependence on expensive conventional and self-generated electricity.
“Beyond reducing energy costs, the programme will support participating manufacturers in aggregating and monetising emissions reductions through carbon credits. It will also assist businesses in measuring and reporting their carbon footprints as international markets increasingly impose stricter environmental and sustainability requirements on imported products,” the statement said.
It added that the programme would help manufacturers reduce operating expenses, improve productivity, strengthen energy independence and enhance the competitiveness of locally manufactured goods.
The summit, themed “Innovative Energy for Cost-Effective Smart Manufacturing with Structured Financing,” brought together manufacturers, government officials, regulators, financial institutions, technology providers and development partners to examine financing arrangements and sustainable energy solutions for Nigeria’s industrial sector.
