Nigerian manufacturers spent about N1.34 trillion on alternative sources of electricity in 2025 as unreliable grid supply continued to push factories towards self-generation.

Data from the Manufacturers Association of Nigeria (MAN) showed that the amount rose by about 21 per cent from the N1.11 trillion recorded in 2024.

The rising cost reflects the growing dependence of manufacturers on diesel generators, gas and other off-grid power solutions to keep their operations running during electricity outages.

MAN said average daily electricity supply to manufacturers fell from 16.7 hours in the first half of 2025 to 13.1 hours in the second half of the year.

Manufacturers’ spending on alternative power has increased significantly over the past decade. The cost stood at N25 billion in 2014 before rising to N129.95 billion in 2016.

Although the figure declined in subsequent years, it began a sharp increase from 2022, when manufacturers spent N144.5 billion on alternative electricity.

The expenditure jumped to N781.7 billion in 2023 and exceeded N1 trillion the following year.

The worsening power situation has also encouraged several large companies to generate electricity for their own facilities instead of relying mainly on electricity distribution companies.

Data from the Nigerian Electricity Regulatory Commission showed that companies including Dangote Industries, Flour Mills of Nigeria, Lafarge Africa, Nigerian Breweries, Nestlé Nigeria and Guinness Nigeria operate their own power-generation facilities.

Dangote Industries generated about 1,500MW of electricity in 2025, while its refinery has a 435MW power plant. Pure Flour Mills in Rivers State also received approval to generate 546MW.

Other industrial companies with approved generation capacities include United Cement Company of Nigeria with 105MW, Flour Mills of Nigeria with 70MW and Lafarge Cement WAPCO Nigeria with 90MW.

Industry experts have warned that the high cost of self-generated electricity is putting additional pressure on manufacturers already dealing with weak consumer demand, high logistics costs and expensive financing.

Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said unreliable electricity remains a major obstacle to industrial production because businesses are forced to spend heavily on their own power supply.

He called for reforms that would improve the reliability and affordability of electricity, alongside stronger infrastructure and access to cheaper long-term financing for manufacturers.

MAN also said improving electricity supply would be critical to reducing production costs and maintaining the competitiveness of Nigerian industries.