MAN Raises Fresh Concerns On Factory Energy Waste, Advocates for ISO Adoption

The Manufacturers Association of Nigeria (MAN) has raised fresh concerns over rising production costs in the country’s industrial sector, noting that avoidable energy losses and weak resource management practices are eroding manufacturers’ competitiveness.

The association revealed that maintenance lapses account for between 10 and 15 percent of energy waste in factories, while the absence of sub-metering systems in most facilities makes it difficult to track and manage consumption effectively.

The findings were presented at a National Stakeholders’ Sensitisation Workshop on ISO 50001 and 14001 standards held in Lagos recently, where MAN cited energy efficiency as a strategic lever for cost reduction and sustainability.

The insights emerged from a Cleaner Production Assessment which covered food and beverages, basic metals, wood and wood products, textiles and leather, and petrochemicals conducted in 42 industries across four geopolitical zones under the GEF-UNIDO Industrial Energy Efficiency and Resource Efficiency Cleaner Production Project.

Speaking at the workshop, MAN’s Director-General, Segun Ajayi-Kadir, mni, represented by National Technical Coordinator, Dr Oluwasegun Osidipe, described the initiative as a defining moment for the manufacturing sector.

He emphasized that energy efficiency is no longer optional but central to survival in an increasingly competitive global marketplace.

“As we embrace the principles of energy efficiency, we will not only reduce our carbon footprint but also save on energy costs. In return, the efficiency, competitiveness and resilience of operations will be enhanced to meet the increasing demand of our global marketplace,” he said.

MAN urged its members to institutionalise energy management and cleaner production by adopting ISO 50001 and ISO 14001 standards, adding that leadership commitment remains critical.

The technical findings revealed wide gaps between current industrial practices and global best standards as compressed air systems were identified as a major source of electricity waste, accounting for about 25 percent of losses, largely due to leaks and improper use.

Steam systems contributed 30 per cent of losses, while lighting accounted for 18 per cent.

Thermal inefficiencies from poor insulation and flue gases in boilers and furnaces, inefficient motor systems operating at partial loads, and lack of Variable Speed Drives were also identified.

In textile and leather factories, idle equipment and weak maintenance culture further compounded losses.

The report also highlighted that unreliable grid supply in Kano and Anambra amplified energy losses, while thermal inefficiencies were more pronounced in the basic metals and petrochemical sectors.

The report however recorded improvements in the food and beverage sector, where a Lagos-based plant cut compressed air leaks by 20 per cent after system optimisation.

Generally, the assessment estimated that industries could achieve between 20 and 25 per cent energy reduction—equivalent to about 500 megawatt-hours of savings per plant annually if integrated energy-efficiency measures are adopted.

Beyond energy, the study exposed poor water management practices across factories, noting that many industries rely on boreholes without measuring daily water consumption, making it difficult to identify waste.

On their part, project coordinators emphasised that recycling water can significantly reduce overall consumption and improve resource efficiency.

Chief Executive Officer of Spectra Industries Ltd, Duro Kuteyi, said the initiative had uncovered hidden financial leakages in factories, particularly in wasted heat and discarded by-products that could be commercialised.

Kuteyi urged industrialists to personally undergo ISO training to drive implementation from the top.

The association also urged policymakers to create an enabling environment that supports energy management systems and cleaner production, insisting that optimising resource use is key to safeguarding the environment while sustaining economic growth.

MAN also maintained that reducing energy waste is not only about cutting emissions, it is about protecting margins, strengthening resilience, and securing the future of the Nigerian manufacturing sector.