Nigeria’s manufacturing sector is facing mounting pressure from rising fuel costs and persistent power instability, with industry leaders warning of imminent increases in production costs and consumer prices if urgent interventions are not implemented.
According to him, manufacturers in Nigeria have long adapted to unreliable grid power by investing heavily in alternative energy sources.
“No factory in Nigeria is built without factoring in alternative power, whether diesel or gas generators. Every manufacturer effectively operates as its own local authority when it comes to power supply,” he said.
Findings across major industrial zones reveal a sector heavily dependent on diesel-powered generators, with factories running at high energy costs to sustain operations. Engineers and technical teams now work around the clock to monitor fuel consumption and prevent disruptions that could halt production lines.
Onafowakan stressed that power outages routinely stall factory operations, placing manufacturers under intense pressure to meet delivery timelines.
The recent surge in global fuel prices, driven by geopolitical tensions, is compounding the challenge. While some manufacturers have temporarily absorbed the increases, Onafowakan warned that the full impact could materialise within the next three to four months.
