Figures cited by The Punch show that industrial manufacturers in Nigeria expended N1.34 trillion on alternative power generation during the 2025 operating year as grid instability persisted. Data from the Manufacturers Association of Nigeria (MAN) reveals a 21 percent surge in off-grid energy spending compared to the N1.11 trillion spent in 2024. Factory owners continue to shift heavy loads onto independent gas plants and heavy fuel generators to avoid catastrophic operational losses from sudden power cuts.
The steep trajectory of energy expenditure continues to undermine the cost competitiveness of locally manufactured goods. Industrial leaders point out that high operational expenses, alongside foreign exchange pressures and expensive commercial credit, are forcing several plants to downsize or suspend operations entirely. Major conglomerates and medium-scale enterprises alike have had to bypass local distribution companies (DisCos) in favor of captive power systems.
Industry representatives have renewed calls for comprehensive power sector reforms, urging accelerated grid reinforcement and concessionary financing to help domestic producers transition toward sustainable and affordable energy sources.
According to *Vanguard*, “spending on self-generated electricity reached record heights as factories fought off structural blackouts.” *Daily Post* similarly cited industry data, noting that “the persistent reliance on costly off-grid fuel sources continues to erode manufacturing margins across key industrial hubs.”
Echotitbits take:
Excessive off-grid power expenditure directly drives up consumer prices and weakens industrial competitiveness under regional trade frameworks. Long-term relief requires functional electricity grid infrastructure and tailored development funding aimed at self-generation for manufacturing clusters.
Source: The Punch – https://punchng.com/blackouts-factories-spend-n1-3tn-on-alternative-power/, September 9, 2026
Photo credit: The Guardian
