Amid rising energy costs and an unreliable national grid, Nigerian manufacturers are fighting hard to stay afloat, having spent a whopping N708 billion on alternative energy sources in the last six months of 2024.
The figure is an increase of 75 percent from N404.8 billion in H1 2024.
The Manufacturers Association of Nigeria (MAN), which made the disclosure in Second Half Economic Review 2024, said the crisis has deepened, with unsold finished goods piling up to N2.14 trillion, an 87.5 per cent rise, indicating an alarming shrink in consumer demand, mounting production challenges and declining purchasing power.
The report also pointed out that alternative energy spending surged to N1.11 trillion, a 42.3 per cent increase from N781.68 billion in 2023.
Director General, MAN, Segun Ajayi-Kadir, explained that though the electricity supply situation for industries improved in 2024, with average daily supply increasing to 13.3 hours per day, up from 10.6 hours in 2023, electricity tariffs surged by over 200 percent for Band A consumers, significantly increased manufacturing costs.
“While power availability improved, many manufacturers still faced frequent outages and costs, as the country witnessed 12 national grid collapses, and this remained a major concern,” Ajayi-Kadir said.
