Manufacturers Raise Alarm Over Poor Power Supply, Spend N676.6bn on Generators
- The Manufacturers Association of Nigeria (MAN) reported that manufacturers spent N676.6bn on alternative energy in the first half of 2025
- The association said unreliable electricity supply remains a major challenge for the sector despite slightly lower backup energy costs
- The group urged government intervention to provide more affordable, reliable power and prevent further job losses
Oluwatobi Odeyinka is a business editor at Legit.ng covering energy, the money market, tech and macroeconomic trends in Nigeria
Manufacturers in Nigeria spent an estimated N676.6 billion on alternative energy sources in the first half of 2025, due to the unreliable and unaffordable state of public power supply.
The Manufacturers Association of Nigeria (MAN) stated this in its State of Affairs Report for October 2025, PUNCH reported.
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Source: Getty Images
The report, presented by the association’s Director of Research and Economic Policy Division, Dr. Oluwasegun Osidipe, stated that despite the enormous amount spent on generators, manufacturers still struggled to meet their power needs.
The report also featured the latest Manufacturers’ CEOs Confidence Index (MCCI) and outlined the persistent energy challenges affecting the sector.
According to the report, although spending on alternative energy fell slightly from the N708.1 billion recorded in the second half of 2024, the cost remained a major strain on manufacturers already operating in a harsh economic climate.
Legit.ng reported that Nigerian manufacturers face such economic challenges as rising inflation, high interest rates, high production costs, and declining consumer purchasing power.
MAN noted that the manufacturing sector recorded 18,935 job losses in the first six months of the year.
The October MCCI further showed that inadequate power supply and the high cost of electricity and backup energy options were among the most severe operational constraints for manufacturers in the third quarter of 2025.
Former MAN Vice President, John Aluya, in an interview with PUNCH, said many factories had faced significant energy shortages in recent months.
He said:
“Alternative energy at the moment is not meeting our production needs, because for you to get alternative energy, you have to invest first.”
Aluya noted that these costs ultimately increased production expenses and weakened the competitiveness of Nigerian manufacturers.
He added that, unlike countries where basic infrastructure is readily available, firms in Nigeria often need to generate their own power, water and logistics support.
Aluya urged the government to intervene in energy pricing, arguing that no country left energy consumption entirely to market forces.
Source: Getty Images
MAN, in its recommendations, called on the Federal Government to expand embedded power generation and support industrial clusters with gas-powered or renewable mini-grid solutions to ensure reliable and affordable electricity for manufacturers.
Vanguard reported that MAN opposed the over-200% increase in electricity tariff for band A users by the federal government. The association argued at the time that the hike could cripple the sector.
MAN also filed a lawsuit against NERC and electricity distribution companies in April 2024 over what it described as an unsustainable tariff regime. However, the case was dismissed by the Federal High Court on October 7.
Manufacturers record N1.4 trillion unsold goods
Legit.ng reported that manufacturers recorded N1.4 trillion worth of unsold goods in 2024, a situation blamed on high inflation and poor purchasing power.
The claim was made by MAN’s president, Francis Meshioye, who also lamented about inflation rates.
He added that the high rate of importation and preference for imported goods were killing the local manufacturing sector.
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Source: Legit.ng
