MANUFACTURERS SPEND N1.3TN ON ALTERNATIVE POWER AS BLACKOUTS PERSIST

Nigerian manufacturers spent about N1.3tn on alternative sources of electricity in 2025, highlighting the growing burden placed on businesses by unreliable power supply across the country. The huge expenditure reflects the continued dependence of factories on diesel generators and other off-grid solutions to keep production lines running whenever electricity from the national grid is unavailable or insufficient.

The rising cost of self-generation has become a major concern for the manufacturing sector, as businesses are forced to absorb additional expenses simply to maintain operations. Manufacturers require a steady and affordable power supply for machinery, processing equipment, storage facilities and other production activities, making prolonged blackouts particularly damaging to their operations and profitability.

The situation has also increased pressure on manufacturers to explore alternative energy sources as a means of reducing their dependence on the national grid. While some businesses have invested in renewable energy and other independent power solutions, diesel-powered generators remain widely used because they can provide immediate backup whenever grid electricity fails. However, the cost of fuel, maintenance and generator operation continues to add significantly to production expenses.

Industry operators have repeatedly warned that Nigeria's electricity challenges undermine the competitiveness of local manufacturers. Higher energy costs can translate into more expensive goods, reduced production capacity and weaker profit margins, while businesses that cannot sustain the cost of alternative power may be forced to scale down operations. The development also raises concerns about the broader impact of unreliable electricity on employment, investment and economic growth.

The N1.3tn expenditure therefore underscores the need for sustained reforms in Nigeria's power sector, particularly improvements in generation, transmission and distribution. A more reliable electricity supply would reduce the amount manufacturers spend on self-generation and allow them to redirect funds towards expanding factories, purchasing equipment, creating jobs and increasing output. The continued dependence on alternative power remains a major obstacle to lowering production costs and strengthening Nigeria's industrial base.