Nigerian manufacturers spent about N1.34 trillion on alternative electricity in 2025 as persistent power outages forced factories to rely on diesel generators, gas and other off-grid energy sources.
Data from the Manufacturers Association of Nigeria (MAN) showed that the amount increased by about 21 per cent, from N1.11 trillion in 2024.
MAN also reported that average daily electricity supply to manufacturers fell from 16.7 hours in the first half of 2025 to 13.1 hours in the second half.
The rising cost of alternative power has increased pressure on manufacturers, affecting production costs, profitability and competitiveness.
Several major companies have reduced their reliance on electricity distribution companies and adopted self-generation using gas and other fuels to keep their factories operating.
Industry experts have called for improved electricity supply and increased investment in the power sector to reduce manufacturers’ dependence on expensive alternative sources.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said unreliable electricity remains one of the biggest constraints to industrial productivity in Nigeria.
He urged the government to implement power sector reforms that would provide reliable and affordable electricity, while also improving infrastructure and access to affordable financing for manufacturers.
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