Manufacturers Spend N1.35trn on Alternative Power

By Adedapo Adesanya

Nigerian manufacturers spent an estimated N1.35 trillion on alternative power in 2025, representing a 23 per cent increase from the N1.1 trillion spent in 2024, the Manufacturers Association of Nigeria (MAN) has said.

The President of the association, Mr Francis Meshioye, disclosed this at the opening of the association’s 54th Annual General Meeting and Made-in-Nigeria Exhibition in Lagos.

He said the rising cost of alternative power was adding to the financial pressures confronting manufacturers, with the high cost of energy, foreign exchange, financing, logistics, regulatory charges and weak consumer purchasing power affecting production and investment decisions.

Mr Meshioye said the increase in spending on alternative energy occurred amid factory closures and production cuts, warning that the cost of self-generation was becoming unsustainable and could undermine the survival of the manufacturing sector.

He also raised concerns over Nigeria’s continued dependence on imported raw materials, saying the country imported approximately N3.53 trillion worth of raw materials in the first half of 2025, with about N1.72 trillion sourced from Asia.

According to him, the figures highlighted the dependence of domestic manufacturing on imported inputs and the need to develop local sources of raw materials and intermediate products to deepen value addition.

Mr Meshioye said reliable and affordable energy, access to finance, availability of industrial inputs, efficient logistics, regulatory predictability, productivity and firms’ ability to invest and scale would determine the success of Nigeria’s recently approved national industrial policy.

He cited data attributed to the Central Bank of Nigeria (CBN) showing that manufacturing capacity utilisation rose from 51.33 per cent in the first quarter of 2025 to 57.50 per cent in the second quarter.

However, he cautioned that the increase should not be viewed separately from the rising costs faced by manufacturers.

The MAN president urged the federal government to accelerate implementation of the national industrial policy, saying its adoption alone would not translate into industrial growth without effective execution.

He also called for enforcement of Executive Orders 003 and 005, which promote the patronage of locally manufactured goods, and urged the government to sanction ministries, departments and agencies that fail to comply.

Mr Meshioye further urged government agencies and political parties to prioritise Nigerian-made products during the forthcoming electoral period, saying increased patronage could provide a boost to domestic manufacturers.

He said Nigeria’s ambition to become Africa’s industrial hub required competitive production, deeper local value addition, stronger domestic supply chains, technology investment and access to markets within and outside Africa.

On the African Continental Free Trade Area (AfCFTA), Mr Meshioye said Nigerian manufacturers could only benefit commercially from regional markets if they were able to compete on cost, quality, standards, reliability and delivery.