The Manufacturers Association of Nigeria (MAN) has stated that manufacturers spent N676.6 billion on alternative energy in the first half of 2025.
This was contained in the MAN Manufacturing State of Affairs October 2025 report, presented by the Director of the Research and Economic Policy Division, Dr Oluwasegun Osidipe.
According to the report, in spite the expenditure, the manufacturers could not meet their power needs due to the country’s unreliable and unaffordable electricity supply, adding that the energy woes still plague the sector despite a drop in alternative energy costs in the first six months of the year.
The report read, “Though lower, alternative energy costs of N676.6bn and raw material imports of N1.72tn in H1 2025 remain a heavy burden on operational costs and employment, with 18,935 job losses recorded in the same period.”
The cost of alternative energy fell from N708.1 billion recorded in the second half of 2024.
Still, MAN stated that the burden remained unsustainable for manufacturers already battling rising inflation, high interest rates and increased production costs.
According to the October MCCI, inadequate power supply and the high cost of electricity and alternative energy ranked among the biggest operating constraints for manufacturers in the third quarter of 2025.
MAN urged the Federal Government to “expand embedded generation and industrial cluster power projects using gas and renewable mini-grids, ensuring manufacturers get reliable, affordable off-grid electricity.”
