Nigerian Manufacturers Spend N1.34tn on Alternative Power

In 2025, Nigerian manufacturers incurred a cost of N1.34tn on alternative electricity sources, a 21% increase from N1.11tn in 2024, as persistent power outages forced reliance on diesel generators and off-grid solutions. Data from the Manufacturers Association of Nigeria (MAN), led by Segun Ajayi-Kadir, reveals that spending on alternative power has surged over the past decade, with manufacturers spending only N25bn in 2014.

This figure rose to N59bn in 2015 and N129.95bn in 2016, but fluctuated in subsequent years, reaching N144.5bn in 2022 and N781.7bn in 2023. The situation has raised concerns regarding the competitiveness of Nigerian manufacturers, who face weak consumer purchasing power and pressure on operating margins.

MAN reported a significant decline in grid reliability, with daily power supply dropping from 16.7 hours in H1 2025 to 13.1 hours in H2 2025. Many manufacturers have stopped relying on electricity distribution companies (DisCos) and have turned to gas or LPFO to mitigate losses from power cuts.