MAN says energy burdens on manufacturers hit N676.6bn in 2025 as power shortages worsen and job losses rise.

The manufacturers association of nigeria director of research and economic policy, Dr Oluwasegun Osidipe, in lagos on thursday, presented new data showing that energy burdens on manufacturers had escalated in the first half of 2025 despite a modest drop in off-grid costs

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The October 2025 Manufacturing State of Affairs report revealed that companies spent N676.6bn on alternative power yet still struggled to meet their electricity needs.

Dr Osidipe said the figure, although slightly lower than the N708.1bn recorded in late 2024, continued to undermine production, with N1.72tn in raw material imports and 18,935 job losses compounding the pressure on firms already battling inflation and rising interest rates.

The report also contained the latest Manufacturers’ CEOs Confidence Index, which showed that inadequate power supply and the high cost of electricity remained among the most severe constraints in the third quarter of the year.

Former MAN Vice President John Aluya, speaking by telephone, said many companies had endured crippling shortages for months.

He explained that solar installations were still incapable of supporting industrial loads and required extensive land and capital, ultimately inflating production costs and eroding competitiveness.

Mr Aluya added that manufacturers in other countries operated with essential infrastructure guaranteed, unlike in Nigeria where firms must generate their own power, water and logistics.

He urged the government to intervene in electricity pricing, noting that several nations had subsidised energy during crises.

He warned that without urgent reforms, spending on alternative power would continue to rise.

The Director General of MAN, Segun Ajayi-Kadir, previously cautioned that no manufacturer could compete globally under the prevailing conditions.

He said the association had opposed a 250 per cent tariff increase proposed in 2024 and had instead recommended a smaller, more manageable adjustment that reflected the poor quality of supply.

Although a lawsuit filed by MAN against the Nigerian Electricity Regulatory Commission was dismissed by the Federal High Court on 7 October, the association insists that industry cannot survive without reliable and affordable power.

Dr Osidipe said the group was urging the Federal Government to expand embedded generation and develop industrial cluster power projects using gas and renewable mini-grids to stabilise supply.

The report’s release drew attention to the uncertainty facing the sector and underscored the determination of manufacturers to remain operational despite punishing conditions.