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Factories Spend ₦1.34trn on Self-Generated Power
Nigerian manufacturers spent ₦1.34 trillion on alternative electricity in 2025, as persistent blackouts forced factories to rely on diesel generators and off-grid solutions, according to data from the Manufacturers Association of Nigeria (MAN).
The figure represents a 21% increase from ₦1.11tn in 2024, highlighting the growing burden of unreliable grid supply. MAN noted that daily power availability dropped from 16.7 hours in H1 2025 to just 13.1 hours in H2.
Over the past decade, spending on alternative power has surged, rising from ₦25bn in 2014 to ₦781.7bn in 2023 before crossing the ₦1tn mark in 2024. The trend underscores the escalating costs manufacturers face to sustain production.
Many firms have abandoned electricity distribution companies (DisCos), opting instead for gas or LPFO. Companies such as Dangote Group, Flour Mills, Lafarge Africa, Guinness Nigeria, Nestlé Nigeria, and Nigerian Breweries now generate their own power. Dangote Industries alone produced about 1,500MW in 2025, including a 435MW plant at its refinery.
Factory closures have followed. Louis Carter Industries, a plastics company, shut down due to energy costs, while Mothers Pride Ventures in Asaba closed in 2018, blaming inefficiency at Benin DisCo. “Lack of power supply from them destroyed our business,” its MD said.
Analysts warn the situation undermines competitiveness. “Power supply continues to be one of the most binding constraints on industrial productivity,” said Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise. He stressed that reforms must deliver reliable electricity, improved logistics, and affordable financing.
Manufacturers have sued DisCos and NERC over arbitrary billing, while the new Band A tariff has further raised costs. MAN’s Segun Ajayi-Kadir said stabilising macroeconomic conditions, improving energy supply, and ensuring affordable financing are critical for sustaining industrial productivity.
