* Tegbe, Okoye, Chukwudozie, outline strategies to tackle industrial energy crisis
The Minister of Power, Joseph Olasunkanmi Tegbe, has unveiled the Federal Government’s strategy to improve electricity supply to Nigeria’s industrial sector, including plans for dedicated transmission infrastructure to connect available power generation to major manufacturing hubs.
Tegbe, who spoke at the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, outlined a four-pronged government approach to addressing the country’s electricity challenges, identifying improved sector liquidity and sustainability, optimisation of existing generation and transmission assets, development of energy zones and expansion of critical infrastructure as key priorities.
He also disclosed plans to strengthen electricity supply to industrial clusters through dedicated transmission links, including a proposed connection between Alaoji and the Agbara industrial area.
According to him, improving the connection between available generation and industrial demand is essential to ensuring that manufacturers have access to more reliable electricity and reducing the cost of production.
The minister’s remarks came as the Manufacturers Association of Nigeria (MAN) launched the Industrial Energy Cost Reduction and Clean Energy Adoption Programme (IECRECAP), an initiative designed to help manufacturers secure more reliable, affordable and sustainable energy while reducing their dependence on expensive alternative power sources.
The programme was unveiled on November 3 at the summit and is being implemented through the Manufacturers Power Development Company Limited (MPDCL), in collaboration with the Nigerian Energy Support Programme, implemented by GIZ, the Federal Ministry of Power and other partners.
Speaking at the event, MAN President, Dr. Ifeanyi Okoye, identified high energy costs, unreliable grid electricity and manufacturers’ increasing dependence on self-generation as major obstacles to industrial productivity and competitiveness.
Okoye stressed the need for sustainable financing models tailored to the peculiar demands of industrial energy projects, advocating practical interventions such as rooftop solar systems, battery storage, captive gas generation and smart energy management.
He noted that improving access to reliable and affordable energy was critical to strengthening local manufacturing capacity and positioning Nigerian industries for regional and global competitiveness.
In a presentation titled, ‘Manufacturers’ Pain Points – Energy Cost: Imperative for Regional Manufacturing Leadership in Accessing Structured Finance,’ Chairman of Keystone Bank Limited and Regional Chairman of MAN for Anambra, Enugu and Ebonyi States, Lady Ada Chukwudozie, highlighted the enormous financial burden manufacturers bear in securing alternative electricity.
Chukwudozie disclosed that Nigerian manufacturers spent approximately N1.11 trillion on alternative power generation in 2024, with the figure rising to about N1.35 trillion in 2025.
She observed that the enormous expenditure was placing considerable pressure on businesses, diverting funds that would otherwise have been invested in raw materials, machinery, staff salaries, business expansion and other productive activities.
The Keystone Bank Chairman advocated structured, investor-backed financing arrangements that would enable manufacturers to adopt clean energy solutions without committing substantial upfront capital.
Using the 1.5-megawatt rooftop solar project at Nkpor, Anambra State, as a practical demonstration of what could be achieved, Chukwudozie explained that investor-financed energy infrastructure could significantly reduce manufacturers’ operating costs while preserving their working capital.
She projected that the project would deliver energy savings of more than 50 per cent, with smart metering, remote monitoring and energy dashboards providing real-time performance tracking and improved energy management.
The IECRECAP initiative combines rooftop solar installations and battery storage, where necessary, with energy efficiency interventions designed to reduce manufacturers’ dependence on expensive conventional and self-generated electricity.
Beyond reducing energy costs, the programme will support participating manufacturers in aggregating and monetising emissions reductions through carbon credits. It will also assist businesses in measuring and reporting their carbon footprints as international markets increasingly impose stricter environmental and sustainability requirements on imported products.
The summit, themed ‘Innovative Energy for Cost-Effective Smart Manufacturing with Structured Financing,’ brought together manufacturers, government officials, regulators, financial institutions, technology providers and development partners to explore innovative financing arrangements and sustainable energy solutions for Nigeria’s industrial sector.
With manufacturers increasingly confronted by rising production costs and energy insecurity, the initiative is expected to provide a viable pathway towards lower operating expenses, improved productivity, greater energy independence and enhanced competitiveness of locally manufactured products.