The Manufacturers Association of Nigeria (MAN) has unveiled an industrial energy cost reduction programme to help manufacturers access affordable, reliable, and sustainable power solutions through structured financing.

MAN president Ifeanyi Okoye disclosed this on Tuesday at the 2026 Manufacturers Energy Security and Energy Efficiency Summit in Lagos.

The event was organised by Manufacturers Power Development Company Ltd. (MPDCL) alongside GIZ and the Nigerian Energy Support Programme (NESP).

Mr Okoye said the industrial energy cost reduction and adoption programme would promote factory rooftop solar installations, battery energy storage systems, captive natural gas solutions, and smart energy management networks.

The programme, he said, was designed to address the rising cost of energy, which had significantly affected manufacturing operations and competitiveness.

He revealed that manufacturers spent about 40 per cent of their profits addressing energy challenges, while high electricity tariffs, unreliable grid supply, and dependence on fossil fuels continued to undermine industrial production.

“Manufacturers cannot finance modern industrial energy transitions with short-term commercial bank loans carrying high interest rates,” he said.

Mr Okoye said the summit would, therefore, facilitate access to long-term financing instruments, climate funds, green investments, and asset-financing mechanisms to support manufacturers’ transition to more efficient energy systems.

“Today, we are moving beyond advocacy into implementation. This flagship initiative is designed to hand the power back to the manufacturer, literally and figuratively,” he said.

John Aluya, chairman of the board of directors, MPDCL, noted that energy costs accounted for more than 40 per cent of manufacturers’ operating expenditure, forcing many to invest heavily in alternative power generation.

He said the high cost of self-generation had reduced manufacturers’ profit margins and weakened their competitiveness.

Mr Aluya stressed that reliable and affordable energy was critical to the survival of Nigerian industries.

He said the summit would explore practical solutions, including solar photovoltaic systems, battery energy storage, captive gas power, energy efficiency, and carbon credit monetisation.

Mr Aluya added that the collaboration with the German government and the European Union through NESP-GIZ would help bridge the gap between manufacturers’ energy needs, technical expertise, and financing.

Adaora Chukwudozie, regional chairman, MAN Anambra, Ebonyi, and Enugu Branch, said manufacturers spent about N1.11 trillion on alternative power generation in 2024, rising to approximately N1.35 trillion in 2025.

Ms Chukwudozie said manufacturers were increasingly diverting funds meant for raw materials, machinery, salaries, and business expansion into electricity generation.

She, however, highlighted a pilot industrial energy cost-reduction project in the South-East, proposing a 1.5-megawatt energy solution with projected savings of more than 50 per cent.

According to her, the proposed financing structure will enable manufacturers to access the energy infrastructure without providing the initial capital investment, thereby preserving working capital for production.

She said the project would also incorporate smart metering, remote monitoring, and energy dashboards to measure consumption, generation, and actual cost savings.

Ms Chukwudozie said the initiative would be expanded across MAN’s branches to aggregate manufacturers’ energy requirements, attract investors, and enable economies of scale.

She stressed that the success of the pilot project would depend on verifiable operating performance and measurable savings that could encourage other manufacturers and financiers to adopt the model.

Responding to manufacturers’ concerns, Joseph Tegbe, Minister of Power, said the federal government was directing investments towards addressing infrastructure gaps, improving electricity supply, and strengthening the power sector.

Mr Tegbe said the federal government had developed a four-pronged roadmap focusing on grid standardisation, sector liquidity and sustainability, asset optimisation, and expansion of electricity infrastructure.

According to him, the ministry is also conducting a technical audit of the power sector to establish infrastructure gaps and prioritise investments based on actual needs.

He identified Lagos as the first major energy corridor under the initiative, given its significant share of national electricity demand, with additional corridors planned for other major industrial and commercial centres.

The minister said the government was also working to improve gas supply to power plants, expand renewable energy deployment, and optimise existing generation and transmission assets.

He reiterated the government’s commitment to collaborating with manufacturers to address their electricity challenges, describing industrialisation as critical to national prosperity.

Also, the chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, said the regulator was engaging electricity distribution companies to prioritise reliable power supply to industrial customers.

He was represented by Agba Terab, director of economic regulation, NERC.

Mr Oseni said the commission was working with stakeholders to establish industrial supply corridors and improve network investments, including battery-enabled storage solutions.

He said NERC’s net billing framework would also enable eligible renewable energy customers to export surplus electricity to distribution networks and receive credits under transparent regulatory arrangements.

He added that the arrangement would encourage private investment in distributed generation, reduce wastage of clean energy, and strengthen industrial energy security.

The NERC boss said regulatory certainty and transparent compensation mechanisms were essential to attracting private capital into renewable energy and improving access to green financing.

He called for stronger collaboration among manufacturers, distribution companies, financial institutions, technology providers, and development partners to achieve a more reliable and sustainable electricity market. 

(NAN)