Manufacturers’ Alternative Power Spend Tops N1trn on Grid Collapse, Pricey Fuel

Manufacturers in Nigeria spent 42.2 percent more on alternative energy sources last year amid unreliable grid power and increases in prices of diesel and petrol, their umbrella body said on Monday.

Their total expenditure on alternative energy sources surged to N1.11 trillion from N781.68 billion in 2023, according to data from the Manufacturers Association of Nigeria.

“While power availability improved, many manufacturers still faced frequent outages, and costs as the country witnessed 12 national grid collapses and this remained a major concern,” MAN said in its economic review for the second half of 2024.

It said the average daily supply increased to 13.3 hours per day from 10.6 hours in 2023. “However, electricity tariffs surged by over 200 percent for Band A consumers, significantly increasing manufacturing costs,” the group added.