Manufacturers says surge in energy cost of over 250% detrimental on businesses
The Manufacturers Association of Nigeria (MAN) have chronicled all the myriads of macroeconomic and infrastructural challenges that severely impacted its performance of its members in 2024, noting that manufacturers were hit hard with a drastic rise in electricity tariffs, with rates increasing by over 250%.
President of MAN, Otunba Francis Meshioye disclosed this in his address during the 2025 edition of the MAN Media Personality Of The Year Award/Presidential Media Luncheon in Lagos, adding that this surge in energy costs became one of the highest operating expenses for businesses in the sector in 2024 and as a result, many manufacturers sought alternative energy sources, further straining their financial resources and complicating their ability to remain competitive.
He said the advocacy would continue in 2025 as the high costs continue to pose a challenge to manufacturers, stressing that electricity costs alone account for more than 35% of an average manufacturers’ cost structure and urged the government to wade in to address the issue for the sector to thrive.
On his part, MAN’s Director-General, Segun Ajayi-Kadir, described the electricity tariff hike as highly worrisome as the Distribution Companies (DisCos) persistently disconnect them from the national grid despite payment of current electricity tariff and against court injunction prohibiting them.
Ajayi-Kadir stated that the association has petitioned the Nigerian Electricity Regulatory Commission, sought for court intervention, yet the manufacturers have continued to face hurdles, compelling them to invest heavily in alternative power sources.
DG MAN revealed that alternative energy sources currently contribute about 6,500 megawatts, exceeding the national grid’s capacity of 4,000 to 5,000 megawatts.
He also recounted that “Last year alone Nigeria experienced 12 national grid collapses which resulted in lower energy being supplied to industries, further aggravating the challenges faced by the manufacturing sector in terms of consistent and reliable electricity supply.
