- MAN calls for collaboration on renewable energy and policy reforms to boost Nigeria’s industrial growth.
- Experts stress urgent investments and energy diversification to address Nigeria’s power supply challenges.
The Manufacturers Association of Nigeria (MAN) has called for collaborative strategies involving cutting-edge technologies, policy frameworks, and financing models to support the country’s transition to a sustainable and reliable energy supply. MAN President Francis Meshioye appealed at the Manufacturers Energy Security Summit held in Lagos recently, titled “Power Supply Adequacy for Industrial Growth in Nigeria.”
Meshioye emphasised that energy security is crucial not only for business but also as a national priority, and a stable energy supply is critical for the industrial sector to contribute significantly to Nigeria’s Gross Domestic Product (GDP). He highlighted the manufacturing sector’s challenges, including unreliable power supply, high energy costs, and environmental concerns. However, he also pointed out that these challenges present opportunities for innovation, job creation, and sustainable growth.
“To shape the future of manufacturing in Nigeria, we must work together, foster collaboration, and share knowledge to identify innovative solutions that accelerate energy security for manufacturers,” Meshioye said. He urged the promotion of sustainable manufacturing practices and support of policy reforms to encourage investment in renewable energy, which could help reduce energy costs.
Sanusi Garba, Chairman of the Nigerian Electricity Regulatory Commission (NERC), represented by Musiliu Oseni, NERC’s Vice Chairman, also addressed the summit. He noted that while electricity is crucial for industrialisation and economic growth, it requires long-term investments. Garba highlighted the recent Electricity Act of 2023, which provides a foundation for improving the Nigerian power sector.
However, he warned that the act’s implementation would not result in the desired improvements without addressing core issues. Garba emphasised that huge investments and a deliberate policy approach were necessary to address the sector’s challenges and ensure sustainable power supply.
Sunday Oduntan, Managing Director of the Association of Nigerian Electricity Distributors, stressed that manufacturing is the cornerstone of any nation’s development. Nigeria’s power sector plays a critical role in this. He pointed out that the country’s power supply relies heavily on gas, with frequent disruptions limiting diversification and sustainability. Oduntan called for diversification into wind, hydro, and other renewable energy sources to reduce dependence on fossil fuels.
Matthew Edevbie, Group Managing Director of Income Electrix Ltd., highlighted Nigeria’s significant power supply deficit, noting that the high cost of infrastructure development would make quick resolution difficult. He revealed that Nigeria loses approximately $26 billion annually due to electricity shortages and that businesses spend an additional $22 billion on off-grid fuel solutions to mitigate power outages. Edevbie stressed the urgent need for improvements in power supply, stating that addressing this issue would positively affect the manufacturing sector and the broader economy.
Despite these challenges, the summit participants agreed that there are opportunities to improve Nigeria’s power situation through a holistic approach focused on optimising generation resources and efficiently utilising the country’s power infrastructure.