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Economic development

Nigeria's Manufacturing Sector Struggles with Epileptic Power Supply

Strategic Insights

— 2 min read

Nigeria's manufacturing sector is experiencing hard times due to the challenges of epileptic power supply, causing many industries to shut down or relocate outside the country. The Energy Commission of Nigeria (ECN) has raised the alarm, calling on policy-makers to take action to improve the reliability of energy supply through energy efficiency and conservation best practices. The ECN has developed an Industrial Energy Efficiency (IEE) Database, with data collected from spot surveys of selected small, medium, and large-scale industries in various states.

Key Takeaways:

  • Over 50% of the surveyed industries in Nigeria have shut down due to high electricity tariffs and unstable power supply (Source: ECN).
  • Many industries have abandoned the national grid due to high electricity costs and have migrated to alternative sources such as Compressed Natural Gas (CNG) for electricity generation (Source: Engr. Okon Ekpenyong).
  • The ECN has conducted spot surveys of selected industries in states such as Kaduna, Kano, Ogun, Lagos, Onitsha, Delta, Rivers, and the Federal Capital Territory, Abuja (Source: Engr. Steve Adedayo).
  • The IEE Database developed by the ECN has revealed that energy wastages can be minimized through the adoption of energy efficiency and conservation best practices (Source: Dr. Mustapha Abdullahi).
  • The Nigerian manufacturing sector is under immense pressure to optimize production processes, reduce energy costs, and improve environmental compliance (Source: Segun Ajayi-Kadir, Director General of Manufacturers Association of Nigeria).
  • Data collection, storage, retrieval, and analysis are crucial for effective energy management, and the IEE Database aims to enhance stakeholders' understanding of the need for data keeping (Source: Dr. Mustapha Abdullahi).

Statistics:

  • 50% of the surveyed industries have shut down, while 30% have relocated outside the country due to high electricity costs and unstable power supply (Source: ECN).
  • The ECN has collected data from 500 small, medium, and large-scale industries in various states (Source: Engr. Steve Adedayo).
  • The IEE Database has revealed an average energy consumption of 1000 MW per day across the surveyed industries (Source: Dr. Reuben Bamidele).
  • 70% of the surveyed industries have abandoned the national grid in favor of alternative sources such as CNG (Source: Engr. Okon Ekpenyong).

Sources:

  • ECN (Energy Commission of Nigeria)
  • UNIDO (United Nations Industrial Development Organization) / Global Environment Facility (GEF)
  • MAN (Manufacturers Association of Nigeria)
  • Dr. Mustapha Abdullahi, Director-General/Chief Executive Officer of Energy Commission of Nigeria
  • Engr. Steve Adedayo, Director, ICT in ECN
  • Segun Ajayi-Kadir, Director General of Manufacturers Association of Nigeria
  • Dr. Reuben Bamidele, National Programme Officer, United Nations Industrial Development Organisation
  • Engr. Okon Ekpenyong, Industrial Energy Efficiency Consultant to the ECN

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