MAN Launches Energy Cost Reduction Programme as Manufacturers’ Power Bills Hit ₦1.35tn
- Manufacturers’ spending on alternative electricity rose by ₦240 billion to ₦1.35 trillion in 2025
- MAN launched IECRECAP to help factories adopt cheaper solar power, battery storage and energy efficiency technologies
- The Federal Government plans dedicated power links for industrial clusters, while the programme also offers potential carbon-credit revenue
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Manufacturers Association of Nigeria (MAN) has unveiled a new energy cost reduction initiative aimed at easing the financial burden on Nigerian factories after manufacturers’ spending on alternative electricity generation surged to ₦1.35 trillion in 2025.
The initiative comes as the Federal Government announced plans to develop dedicated electricity transmission infrastructure connecting power generation facilities to major industrial clusters.
Source: Getty Images
The Industrial Energy Cost Reduction and Clean Energy Adoption Programme (IECRECAP), launched on November 3 in Lagos, seeks to provide manufacturers with cheaper, more reliable electricity through renewable energy solutions and innovative financing arrangements.
Manufacturers’ electricity costs jump by ₦240bn
Speaking at the Manufacturers Energy Security and Energy Efficiency Summit, Keystone Bank Chairman, Lady Ada Chukwudozie, disclosed that manufacturers spent approximately ₦1.11 trillion on alternative electricity generation in 2024.
The expenditure increased to ₦1.35 trillion in 2025, representing an additional ₦240 billion, or approximately 21.6 per cent.
Chukwudozie, who also serves as MAN Regional Chairman for Anambra, Enugu and Ebonyi states, warned that rising energy expenses were diverting resources from productive investments.
She explained that money spent powering factories could otherwise support machinery purchases, raw materials, employee salaries and business expansion.
FG announces dedicated power infrastructure
Minister of Power, Joseph Olasunkanmi Tegbe, outlined a four-pronged strategy to improve electricity availability for manufacturers.
The priorities include strengthening electricity sector liquidity, optimising existing generation and transmission assets, developing industrial energy zones and expanding critical infrastructure.
Tegbe disclosed plans for dedicated transmission connections, including a proposed link between Alaoji and the Agbara industrial area.
According to him, connecting available electricity generation directly to industrial demand would improve supply reliability and reduce production costs.
MAN introduces cheaper electricity alternatives
MAN President, Dr Ifeanyi Okoye, identified unreliable grid supply and dependence on expensive self-generated electricity as major threats to Nigeria’s industrial competitiveness.
He explained that IECRECAP would promote rooftop solar installations, battery storage and energy efficiency technologies to help manufacturers reduce electricity expenses.
The programme is being implemented through the Manufacturers Power Development Company Limited, in collaboration with the Nigerian Energy Support Programme implemented by GIZ, the Federal Ministry of Power and other partners.
Solar project targets 50% energy savings
Chukwudozie highlighted a 1.5-megawatt rooftop solar project in Nkpor, Anambra State, as an example of how manufacturers could reduce electricity costs without substantial upfront investments.
She projected that the investor-financed project would deliver energy savings exceeding 50 per cent.
The installation incorporates smart meters, remote monitoring systems and digital dashboards to track electricity consumption and improve efficiency.
She advocated structured financing arrangements that would allow manufacturers to adopt similar technologies while preserving working capital.
Manufacturers to benefit from carbon credits
Beyond cheaper electricity, IECRECAP will help participating businesses measure their carbon emissions and potentially generate revenue through carbon credits.
The programme will also support manufacturers in meeting international environmental reporting requirements, increasingly important for accessing export markets.
Source: Getty Images
Industry stakeholders believe the initiative could strengthen local production, improve competitiveness and reduce manufacturers’ dependence on costly alternative electricity sources.
However, its success will depend on affordable financing, effective implementation and the ability to deliver measurable electricity savings across industrial clusters.
Power outages hit Lagos, Abuja, 3 other states
Legit.ng earlier reported that electricity consumers in Lagos, Abuja, Ogun, Kwara and Oyo are facing renewed power outages, prompting the federal government to explain the worsening supply situation amid growing frustration among households and businesses.
The disruptions have also raised concerns among customers about premium electricity tariffs, particularly Band A consumers who are expected to receive at least 20 hours of electricity daily.
Source: Legit.ng
