Nigerian manufacturers spent N1.34 trillion on alternative electricity sources in 2025, as persistent power outages forced factories to lean more heavily on diesel generators and other off-grid solutions to sustain production, CDA News Nigeria reports.
CDA News Nigeria gathered that exclusive data from the Manufacturers Association of Nigeria (MAN) showed the spending rose by about 21 per cent from N1.11 trillion in 2024, underlining the growing burden of unreliable electricity supply on the country’s industrial sector.
MAN data indicates the figure has climbed sharply over the past decade despite occasional dips, from N25 billion in 2014 to N144.5 billion in 2022, before surging to N781.7 billion in 2023 and crossing the trillion-naira mark in 2024.
The association attributed the worsening trend partly to declining grid reliability, noting that daily power supply dropped from 16.7 hours in the first half of 2025 to just 13.1 hours in the second half.
A growing number of manufacturers are reportedly abandoning the national grid altogether, switching instead to gas or low-pour-fuel-oil generation to avoid production losses linked to outages from Discos.
Speaking at a recent manufacturing conference in Lagos, a MAN official warned that the sector cannot thrive under such unreliable power conditions without urgent reform.
The development comes despite the Electricity Act 2023 and the National Industrial Policy 2025, both of which emphasise state-level electricity autonomy and private-sector-led power solutions to ease the burden on industry.
CDA News Nigeria will continue to monitor developments in the power sector.
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