The recurring power grid failures in Nigeria are forcing manufacturers to incur significant expenses on alternative energy sources, thereby increasing production costs and undermining investments, according to the Manufacturers Association of Nigeria (MAN).
The manufacturer association made this known at the 10th edition of its 2026 Presidential Media Luncheon, held on Wednesday in Lagos.
Francis Meshioye, president of MAN, in his address, said that erratic public power supply had become a major structural bottleneck for manufacturers, compelling firms to rely heavily on alternative energy sources to keep factories running.
Meshioye noted that manufacturers spent N676.6 billion on energy in the first half of 2025, worsening cost pressures at a time of high interest rates, multiple taxes, and weak consumer demand.
He added that without sustained investment in grid modernisation and affordable energy solutions, the sector’s resilience could be further stretched, despite modest gains in capacity utilisation and exports.
Meshioye also said that despite some macroeconomic improvements in 2025, operating conditions remained tight, as persistent double-digit inflation continued to erode consumers’ purchasing power, thereby dampening demand for manufactured goods.
“While the broader economy recorded disinflation in 2025, with headline inflation moderating from 27.61 percent in January to 15.15 percent in December, price levels remained elevated,” the MAN president said.
He further stated that the sector’s outlook for Nigeria’s economy in 2026 is positive, only if the right policies are in place, including securing affordable and reliable energy for the industry.
“This means sustained engagement to ensure investments in power, transport, and other industrial infrastructure are fully delivered, advancing gas to power solutions and grid modernisation, expanding credit intervention programmes, and redressing fiscal and regulatory measures that undermine competitiveness.
“MAN will adopt a more structured, evidence-driven advocacy strategy this year, engaging early with government on budget priorities, producing concise policy briefs backed by data, and building stronger alliances within the organised private sector,” Meshioye said.
He congratulated media partners and urged them to continue telling the story of the industry with accuracy, depth, and courage, saying, “Nations are built not only by factories, but by the stories that promote and defend them.
Segun Ajayi-Kadir, director general of MAN, also congratulated awardees, saying, “This year, we shall not only continue to actively monitor government decisions and be prompt in our response, but we shall also proactively work to anticipate and shape them.
“We are grateful that you are able to put our message out there and not allow our stories to be unreported.
