The presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, has warned that Nigeria cannot achieve meaningful industrial growth when manufacturers spend about half of their operating costs on energy.
Atiku said the high cost of diesel and other energy sources was putting pressure on Nigerian businesses, forcing manufacturers to spend more money just to keep their factories running.
He spoke through a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, while reacting to the proposed Vienna-listed bond arrangement by the President Bola Tinubu administration.
Atiku said diesel prices had risen to about N2,000 per litre or more in some industrial areas, while energy expenses had become a major burden for manufacturers.
He cited figures from the Manufacturers Association of Nigeria (MAN), saying energy-related expenses now account for more than half of manufacturers’ operating costs.
According to him, manufacturers spent about N1.34 trillion on alternative energy in 2025, while spending in the first half of 2026 had already approached the same level.
Atiku said manufacturers in places such as Lagos, Kano, Aba and Nnewi were forced to spend a large part of their operating budgets on keeping their factories running, leaving less money for workers’ salaries, raw materials, transportation, loan repayments and profit.
“No economy can industrialise under those conditions. When manufacturers are faced with such high energy costs, they will have no choice but to increase the prices of their products, reduce production, lay off workers or even shut down.
“Whichever option they choose, ordinary Nigerians will bear the consequences through higher prices, fewer jobs and lower household incomes,” Atiku said.
Atiku also questioned the Federal Government’s decision to seek additional financing through the proposed Vienna bond at a time when the government says its revenues have increased.
He argued that the administration should first explain how existing revenues and savings from fuel subsidy removal have been used before seeking more loans.
“This is the central contradiction Nigerians are entitled to question. Government says revenues are up. It says subsidy removal has saved enormous sums. Oil prices are substantially above the benchmark used for the 2026 budget. Yet borrowing is accelerating, factories are suffocating under energy costs and ordinary Nigerians are still struggling to afford the basics,” he said.
Atiku further called on the Federal Government to provide Nigerians with full details of the proposed Vienna transaction, including its financial structure, borrowing cost, repayment terms and the extent of government exposure.
He said Nigerians deserved a clear account of how government revenue was being generated and spent, as well as details of its borrowing and financial obligations.
‘Nigeria cannot industrialise as manufacturers spend half of costs on energy’ – Atiku