Nigerian manufacturers spent N1.34tn on alternative electricity sources in 2025, as persistent power outages forced factories to rely on diesel generators and other off-grid energy solutions to sustain production.
Exclusive data from the Manufacturers Association of Nigeria showed that manufacturers’ spending on alternative power rose by about 21 per cent from N1.11tn in 2024 to N1.34tn in 2025.
The latest increase highlights the growing burden of unreliable electricity supply on Nigeria’s industrial sector, with manufacturers forced to shoulder the cost of generating a significant portion of the power required to keep their plants operating.
MAN data showed that spending on alternative electricity has risen sharply over the past decade, despite fluctuations in some years.
Manufacturers spent N25bn on alternative power in 2014, with the figure increasing to N59bn in 2015 and N129.95bn in 2016.
The expenditure declined to N117.4bn in 2017 and fell further to N93.11bn in 2018 and N61.38bn in 2019.
It rose to N81.91bn in 2020 before dropping to N71.22bn in 2021.
However, the cost of alternative electricity began a steep climb from 2022, reaching N144.5bn that year.
The figure then increased to N781.7bn in 2023, before crossing the N1tn mark at N1.11tn in 2024.
By 2025, manufacturers’ alternative power bill had climbed further to N1.34tn.
The situation has raised concerns about the competitiveness of Nigerian manufacturers, particularly as firms contend with weak consumer purchasing power and intense pressure on operating margins.
Industry stakeholders have stressed the need for more reliable grid electricity and greater investment in alternative energy infrastructure to reduce manufacturers’ dependence on expensive diesel-powered generation.
“Grid reliability deteriorated significantly, with daily power supply dropping from 16.7 hours in H1 2025 to just 13.1 hours in H2 2025,” MAN, led by Segun Ajayi-Kadir, said.
