- Unreliable power supply has pushed over 40% of Nigerian industries off the national grid.
- Industries increasingly depend on diesel and gas, driving up production costs.
Unreliable power supply has forced over 40 per cent of Nigerian industries off the national grid. The Industrial Energy Consumption Survey, conducted by the Energy Commission of Nigeria (ECN) with the United Nations Industrial Development Organisation (UNIDO), revealed this trend.
The survey, carried out in Lagos, Ogun, Abuja, Kaduna, Kano, Port Harcourt, Warri, and Onitsha, exposed major industrial challenges. According to ECN’s consultant, Okon Ekpenyong, industries now rely heavily on diesel and Compressed Natural Gas (CNG). This shift is a direct response to unreliable power supply across the country.
Electricity tariffs have jumped by more than 300 per cent. Prices rose from ₦69.75 in 2023 to ₦209.5 in 2024. Around 76 per cent of industries still pay through estimated billing, increasing operational inefficiencies. Alarmingly, over 90 per cent of industries lack energy policies. Furthermore, 76 per cent are unaware of ISO 50001 standards. Almost half do not practise basic housekeeping energy-saving measures.
Ekpenyong noted that too many uncoordinated policymakers create inconsistent regulations. He added that industries hesitate to embrace efficiency measures due to poor knowledge of the benefits. Also, weak awareness and a limited database of active industries also hinder progress.
In his address, Dr Mustapha Abdullahi, ECN’s Director General, said the Global Environment Facility project promotes Industrial Energy Efficiency (IEE) and Cleaner Production (RECP). He stressed that energy efficiency means using less energy to achieve the same results. Reducing waste is vital for economic growth with rising tariffs and subsidy removal.
UNIDO’s National Programme Officer, Dr Reuben Bamidele, praised ECN’s commitment. He confirmed that energy costs account for up to 40 per cent of industrial production expenses.