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Factories spend N1.3tn on alternative power due to blackouts

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Nigerian manufacturers spent N1.34tn on alternative electricity sources in 2025, as persistent power outages forced factories to rely on diesel generators and other off-grid energy solutions to sustain production.

Exclusive data from the Manufacturers Association of Nigeria obtained by The PUNCH showed that manufacturers’ spending on alternative power rose by about 21 per cent from N1.11tn in 2024 to N1.34tn in 2025.

The latest increase highlights the growing burden of unreliable electricity supply on Nigeria’s industrial sector, with manufacturers forced to shoulder the cost of generating a significant portion of the power required to keep their plants operating.

MAN data showed that spending on alternative electricity has risen sharply over the past decade, despite fluctuations in some years.

Manufacturers spent N25bn on alternative power in 2014, with the figure increasing to N59bn in 2015 and N129.95bn in 2016.

The expenditure declined to N117.4bn in 2017 and fell further to N93.11bn in 2018 and N61.38bn in 2019.

It rose to N81.91bn in 2020 before dropping to N71.22bn in 2021.

However, the cost of alternative electricity began a steep climb from 2022, reaching N144.5bn that year.

The figure then increased to N781.7bn in 2023, before crossing the N1tn mark at N1.11tn in 2024.

By 2025, manufacturers’ alternative power bill had climbed further to N1.34tn.

The situation has raised concerns about the competitiveness of Nigerian manufacturers, particularly as firms contend with weak consumer purchasing power and intense pressure on operating margins.

Industry stakeholders have stressed the need for more reliable grid electricity and greater investment in alternative energy infrastructure to reduce manufacturers’ dependence on expensive diesel-powered generation.

See also  Non-oil revenue jumps 40% to N20.6tn – Presidency

“Grid reliability deteriorated significantly, with daily power supply dropping from 16.7 hours in H1 2025 to just 13.1 hours in H2 2025,” MAN, led by Segun Ajayi-Kadir, said.

Manufacturers abandon DisCos

 

 

The PUNCH gathered that many manufacturers are no more relying on the electricity distribution companies, popularly known as DisCos, in their production units or factories, but have deployed gas or LPFO on regular basis in order to avoid suffering losses arising from power cuts during production activities.

Based on our findings, some of the companies that have jilted DisCos in their factories include: Flour Mills of Nigeria, Dangote Group, Cadbury, Haffar, Kam Industries,

Nigerian Breweries Plc, Flour Mills of Nigeria Plc, Lafarge Africa, Procter and Gamble Nigeria Limited, Bank of Industry Ltd, Seven-Up Bottling Company Plc, Dangote Cement Plc, Lekki Port LFTZ Enterprise Limited, Guinness Nigeria Plc, Nestle Nigeria Plc, and Aluminium Smelter Company of Nigeria.

Others in the same category are: De-United Foods Industries Limited, Sagamu Steel Nigeria Limited, British American Tobacco Nigeria Limited, Unilever Nigeria Plc, Total E & P Nigeria Limited, and Mikano International Limited, according to the Nigerian Electricity Regulatory Commission.

In 2025, Pure Flour Mills Limited, a manufacturer in Rivers State, got a licence to generate 546MW, according to the NERC.

Dangote Industries Limited had generated about 1,500 megawatts of electricity in 2025, according to Aliko Dangote. The Dangote refinery alone had a 435MW power plant that could meet the total power requirement of the Ibadan Electricity Distribution Company in 2025.

According to NERC, Pure Flour Mills Limited in Rivers State got a permit to generate 546MW of electricity.  United Cement Company of Nigeria Limited generates 105MW; Flour Mills of Nigeria Plc, 70MW; and Lafarge Cement Wapco Nigeria Plc, 90MW.

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An earlier survey undertaken by professor of economics at University of Ibadan, Adeola Adenikinju, showed that manufacturers self-generate 13,223 megawatts (MW) of electricity. But with the exodus from DisCos, analysts say the figures have expanded in the last two years.

Factory shutdowns

Several Nigerian factories have closed down due to poor power supply. Louis Carter, a plastic-making company , is one of them.

“We had a major challenge with energy costs, which was quite unfortunate. We were also not getting the raw materials we needed,” said General Manager of Louis Carter Industries, Ndubuisi Okoli.

Mothers Pride Ventures is another one. It produced thousands of pet bottles, nylon and plastic cans in Asaba for over five years. However, it shut down in 2018 over high production costs.

Managing Director of the now moribund company, Jimoh Dayo, told our reporter that the company went out of business due to the alleged inefficiency of Benin Electricity Distribution Company (Benin DisCo).

“The way DisCos are handling power is not the way it should be. They provide electricity to whoever they want. The privatisation of the power sector (in 2013) should not have been done. Lack of power supply from them destroyed our business.”

 

 

Analysts intervene

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said: “Power supply continues to be one of the most binding constraints on industrial productivity. Manufacturers are compelled to self-generate energy at enormous cost, undermining competitiveness and eroding profitability.”

He added, “No manufacturing economy can achieve global competitiveness when power is unreliable,logistics are inefficient and capital is prohibitively expensive.”

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He said Nigeria’s industrial future requires a deliberate and sustained commitment to competitiveness.

“Power sector reforms must deliver reliable and affordable electricity. Investments in rail infrastructure must be accelerated to reduce logistics costs. Development finance institutions should be strengthened to provide long-term industrial financing at concessionary rates.”

Manufacturers have severally filed lawsuits against DisCos and the Nigerian Electricity Regulatory Commission over what they described as arbitrary increases in the electricity bills.

The recently introduced Band A is revving up their costs and they say it could shut more factories.

“Moving forward, stabilising macroeconomic conditions, improving energy supply, and ensuring access to affordable financing will be critical for sustaining growth and enhancing industrial productivity,” Ajayi-Kadir said.

Source: punchng.com

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Taiwo Oyedele rules out fuel tax, calls report fake news

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The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has ruled out plans to introduce a fuel tax, describing reports suggesting otherwise as “fake news”.

Oyedele said the Federal Government had no plan to impose the levy, accusing some online reports of twisting his remarks during an interview with ARISE News.

In a post on X on Tuesday, the minister said, “In my interview with ARISE News, I was clear: a fuel tax is not on the table.”

He added, “Having removed the fuel subsidy, it would be insensitive for government to impose a fuel tax at this time.”

Oyedele’s clarification followed reports suggesting that the government intended to introduce a fuel tax once economic conditions improved and Nigerians’ incomes could accommodate the additional burden.

Dismissing the reports, he said, “Some online reports have since twisted this message into a claim that the government plans to introduce fuel taxes. That is FAKE NEWS.”

He urged Nigerians to disregard what he described as misleading headlines and watch his remarks on the issue.

During the interview, conducted on the sidelines of the 2026 annual meetings of the International Monetary Fund and the World Bank in Bangkok, Thailand, Oyedele explained that imposing a fuel tax while petrol was subsidised would have been counterproductive because the government would effectively be paying the tax itself.

He also argued that the priority should be to grow incomes faster than prices rise, rather than focus on suppressing prices.

The minister maintained that introducing a fuel tax under the prevailing economic conditions would place an additional burden on Nigerians still grappling with the effects of subsidy removal.

See also  Tinubu approves commercial oil drilling in Ogun

Source: punchng.com

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Tinubu reveal no regrets on subsidy, won’t return to Egypt

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President Bola Tinubu has said he has no regrets over the removal of the fuel subsidy, vowing that Nigeria will never go back to it as he likened any return to asking the biblical Moses to go back to Egypt.

Tinubu spoke on Monday evening at the forum tagged ‘Together till 2027: An Evening with Original City Boy’, organised by the City Boy Movement in conjunction with the Relax-Tinubu-Is-Fixing-Nigeria movement, both of which are geared towards his reelection at the 2027 polls.

Recalling the start of his administration, the President said he scrapped the subsidy on his first day in office.

“I came, and I removed the subsidy the first day,” he said, adding that Nigeria was heading for bankruptcy, with “nothing left to pay subsidy.”

The President threw jabs at the African Democratic Congress presidential candidate, Atiku Abubakar, who promised a return to subsidy.

Citing what he called his studies of scripture in the Bible and the Holy Quran, Tinubu recalled how the Red Sea parted when Moses left Egypt.

He likened the end of the subsidy regime to the exodus of the ancient Israelites from Egypt, saying, “You cannot ask Moses to go back to Egypt.”

Continuing, he said, “I could listen to my political opponents promising a return to subsidy. Most of all, sometimes I remember my scripture studies, both the Bible and the Holy Quran. When Moses left Egypt, they faced the challenge, and the Red Sea parted and gave way.

“You cannot ask Moses to go back to Egypt. We wake up with ideas, original thoughts, and deep thinking to move this country forward. With your energy, your support, Nigeria will never go back to Egypt. No regrets.

“Before I left home, I saw one of the greatest Chinese economic news growing by 4.6 per cent or thereabouts. We are on the right trajectory. We are in good company. The economy is growing steadily. You will have a future, a future to believe in.”

The President added, “Nigeria must win this election before any candidate does. You are not campaigning for me. You are campaigning for your own future, and that future is renewed hope. There’s nothing that will push us back.”

Tinubu said the past three years had not been easy, adding that his administration “took hard decisions.”

He described the condition in which he took over, stating that, “We owed money to airlines. They were almost cutting their flights to Nigeria. Our foreign reserve was nothing. We printed currencies as if there were no tomorrow.”

He said that rather than dwell on the flaws of the past, he chose to assume the responsibility and liability of his predecessor.

“We understood that a nation cannot borrow its way to greatness,” Tinubu said, adding that many people had predicted that young Nigerians would turn their backs on the reforms.

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“They were wrong. You are here,” he said.

Turning to the January 16, 2027, presidential election, the President told the youths to take the message to their campuses, markets and villages.

“Make sure every young person you know has a PVC and use it. Tell them what we have done, and tell them what we will do. Campaign with your ideas.

“You are not campaigning for me. You are campaigning for your own future, and that future is Renewed Hope,” he stated.

On the Students Loan Act, which he signed in 2023, he said he also had no regrets, adding, “Today, more than a million students have been supported through NELFUND.”

Tinubu announced the end of the petrol subsidy when he took office on May 29, 2023.

The pump price rose from about N180 per litre to about N620 after the announcement, and to about N1,200 roughly a year later.

Atiku, on August 20, in an English rendering of a Hausa-language interview, said: “If elected, I will bring back the oil subsidy.”

He, however, proposed a capped, audited production subsidy tied to domestic refining, saying his proposal was not to resurrect the old subsidy regime.

The Presidency called the proposal a return to a “wasteful, corruption-ridden and financially burdensome” system.

At the event, Tinubu assured the City Boy Movement, especially the youth who had stood with him, that they would not be left behind.

“The future of this country does not belong to me, and it does not belong to my generation. It belongs to you.

“I am very proud, once again, that when I signed the Student Loan Act, I had no regrets.

“Today, more than a million students have been supported through NELFUND,” Tinubu stated.

On his son, Seyi, he said: “He is running after his father. Your young colleagues would have seen that you are investing your time effectively. We are with you. Thank you. You did it humbly.

“You did not ask for a title or an office. You went to the young people, your age mates, your group. You listened to them and organised them.

“I am proud of all of you. But I will tell you what every father tells a son: you have only started. Do more, not less. Serve harder. Set an example that your own children, my grandchildren, will be proud to follow.”

Speaking earlier, Vice President Kashim Shettima said Nigeria’s economy would have collapsed had President Bola Tinubu not taken what he called far-reaching decisions.

He said, but for the tough decisions, critics would by now be writing epistles on a collapsed economy from the comfort of their homes in Dubai, United Arab Emirates, and New York, United States.

The Vice President credited the President’s decisions for the economy’s recovery.

He said, “The President took those far-reaching decisions. He had the courage of conviction and the knowledge to take those far-reaching decisions that repositioned the Nigerian economy, so that now, the economy grew by 4.43 per cent in the last quarter.

See also  Tinubu directs immediate employment for 200 corps members, N250,000 cash awards

“Most importantly, our foreign reserves are now hovering at the level of $60bn.

“Remember how far we have come. It’s only those who have been in the deepest valley that will appreciate how magnificent it is to be on a mountain top.”

To the critics of the administration, Shettima said, “The same people that are crying wolf, if the President had not taken those far-reaching decisions, Walahi, I am not talking to you as a politician. I am talking to you as a Nigerian; our economy would have collapsed.

“These people, by now, would be writing epistles on a collapsed economy from the comfort of their homes in Dubai, in New York, or in marriage with their young Moroccan wives. I have not mentioned anybody’s name.”

He admitted that Nigerians had endured hardship, but said it could have been worse.

“Your Excellency, distinguished ladies and gentlemen, the President has to be commended, not demonised. Yes, Nigerians have gone through some tough times, but it could have been worse.

“Be reassured that in the coming weeks, the President will come up with robust responses to agricultural challenges, and prices of foodstuffs will certainly come down,” he stated.

The Vice President said efforts were being made to reposition the economy, citing the Nigerian Education Loan Fund and investments in infrastructure.

He then asked the youth to carry the message to the streets.

“I urge the youth of Nigeria. I beseech thee. I implore you to go out to the streets and tell the truth to other Nigerians,” he stated.

At the inauguration of the All Progressives Congress Presidential Campaign Council on October 14, Shettima mocked the former Vice President, Atiku Abubakar, and the former Anambra State governor, Peter Obi, over their economic proposals.

Also speaking at the event on Monday, the Deputy Senate President, Barau Jibrin, commended the City Boy Movement, describing it as a “special purpose political vehicle” that was not only human-driven but also technology- and AI-driven.

He said he believed no other political organisation in the country was doing what the group was doing, and urged others to take a cue from it.

Jibrin asked the movement to build Tinubu’s ideology and philosophy into its AI content, citing his “spirit of philanthropy, the spirit of resilience, the spirit of perseverance, and of course patriotism.”

The Deputy Senate President also urged the group to load its AI platform with questions and answers to counter some of the candidates in the election whom he accused of “churning out things that they cannot achieve” in “false populism”.

He said, “We know their track records; we know their scorecards when they held offices before. So that people will not fall for their lies, so that people will not fall for the fallacy they are turning out every day.”

See also  FG unveils new strategy to tackle housing deficit

He further asked that the content explain the global rise in the cost of living, which he blamed on armed conflicts. He said the President was working very hard to deal with the situation.

The Speaker of the House of Representatives, Tajudeen Abbas, announced that he would publish an audit of what Tinubu had done for his Zaria constituency in Kaduna State, and called on all political officeholders serving under the President to do likewise.

He said he would hold a media briefing within 14 days, where he would also present a scorecard of the House’s bills, reforms and oversight work done in partnership with the administration.

“It will not be a celebration; it will be an audit. Every intervention will carry a location, a value and a status.

“And where something remains undone, I will say so, because an account that tries to hide its gap is merely an advertisement,” he said.

Abbas said many people who carried the President’s portrait on their posters had “never carried your record to their people.”

He urged officeholders, elected and appointed alike, to render an account of what their share of the President’s mandate had produced, and proposed a common format and a 90-day timeframe.

“The question before us will not be, whose side are you on. It will be, what did you do?” he stated.

Addressing the City Boy Movement, the Speaker asked it to verify these accounts by photographing projects and holding town halls where officeholders face their constituents.

“A leader learns nothing from applause. Become the feedback loop this administration requires, carrying the President’s record down to the people and the people’s verdicts back to the President,” said Abbas.

On his part, the Director-General of the City Boy Movement, Francis Shoga, told the President that Nigerian youths were ready to work and ready to serve.

“We are not a generation waiting helplessly on the sidelines. We are not a generation without direction, courage or purpose.

“We are a generation prepared to rise above every limitation, organise with discipline, confront challenges with courage and build the Nigeria of our dreams.

“Your Excellency, we are your foot soldiers, ambassadors of hope, defenders of our national unity and committed partners in the great task ahead of national transformation. Wherever young Nigerians are found, we will carry the message of Renewed Hope,” he stated.

Shoga said the movement drew its inspiration from the “courage, persistence, patriotism, visionary leadership and bold decision-making” that had defined Tinubu’s political journey and public service.

“Our mission,” he affirmed, “is to inform, engage, inspire and empower Nigerian youths so that they understand the direction of government, recognise available opportunities and participate confidently and responsibly in national development.”

Source: punchng.com

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FG showcases $125m housing PPP model to African nations

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The Federal Government has attracted interest from African countries seeking to replicate Nigeria’s housing delivery model, which leverages private investment, concessional loans and guaranteed buyers to deliver 100,000 homes without direct public financing of construction.

The Renewed Hope Housing Public-Private Partnership model was presented by the Director-General of the Infrastructure Concession Regulatory Commission, Dr Jobson Ewalefoh, at the Second Forum for Public-Private Partnership Units in Africa in Addis Ababa, Ethiopia.

A statement issued by the Acting Head of Media and Publicity, Ifeanyi Nwoko, on Monday said delegates from 36 countries attended the forum, which focused on making public-private partnerships work in social sectors, including housing, healthcare, education, sanitation and water.

Nigeria was among five countries selected to present projects at the forum’s project clinic, alongside Malawi, Kenya, Djibouti and Côte d’Ivoire.

The statement read, “The Federal Government has presented its Renewed Hope Housing Public-Private Partnership model at a continental forum in Addis Ababa, Ethiopia, where African countries showed strong interest in replicating it in their own housing programmes.”

Speaking for the Nigerian delegation, Ewalefoh said the Renewed Hope Cities programme would deliver 100,000 housing units across selected Nigerian cities through a joint venture concession with private sector partners.

“The beauty of this PPP structure is that it is not the conventional PPP. In this case, the private party owns the land, has the design, is financing it and is doing the construction,” he said.

Under the model, the Federal Government’s role is to reduce investment risks and create the conditions necessary for private developers to deliver homes at affordable prices.

See also  Non-oil revenue jumps 40% to N20.6tn – Presidency

“The PPP here is that the government agreed to de-risk the project,” Ewalefoh said.

He explained that the arrangement was designed to address the financing constraints facing housing developers in Nigeria, where commercial lending rates exceed 23 per cent, making it difficult to finance large-scale housing projects at market rates.

Rather than pay for construction directly, the government deployed several measures to attract private capital and improve affordability.

These include guaranteeing demand by identifying middle-income federal civil servants as prospective off-takers, providing access roads to the semi-urban project sites and securing concessional financing through public institutions.

According to the statement, about $19m in single-digit interest funding was unlocked through the Federal Mortgage Bank of Nigeria, while the Family Homes Fund provided a further $20m in concessionary loans.

Homebuyers are also expected to benefit from lower mortgage rates through an approximately `$112m MOFI Real Estate Investment Fund.

The government and the developer negotiated sale prices to keep the houses affordable, while a restriction limiting each buyer to one unit was introduced to discourage speculative purchases.

The measures, according to the ICRC chief, have reduced the effective cost of the project by about 30 per cent.

The structure is expected to mobilise approximately 39m in concessionary funding helping to unlock the project.

Ewalefoh told delegates that the model demonstrated how governments could expand housing supply without bearing the full cost of construction.

“The structure means the government is delivering homes without funding their construction. About $39 million in concessionary funding is helping to unlock a project whose construction cost now stands at about $125 million in private sector investment.

See also  Tinubu approves commercial oil drilling in Ogun

“Government does not need to finance housing capital projects. It can crowd in private capital through policy, land availability and off-taker facilitation to create a replicable, scalable model for housing delivery,” he said.

The Nigerian model generated considerable interest during the question-and-answer session, with delegates seeking details on how its risk-sharing arrangements could be adapted to their respective countries.

Particular attention was given to the use of guaranteed off-takers to provide developers with a more predictable market and concessional financing to reduce the cost of delivering homes.

The forum was co-organised by the United Nations Economic Commission for Africa, the African Development Bank and the African Legal Support Facility under the theme, “Making Social Sector PPPs Work: From Policy Ambition to Effective Service Delivery”.

Held at Africa Hall, the United Nations Economic Commission for Africa, the two-day event brought together heads of PPP units, development finance institutions, private operators and transaction advisers to examine how private investment could support essential public services.

Discussions covered risk allocation, availability payments, viability gap funding, subnational PPP arrangements and contract management.

Unlike roads, ports and power plants, social infrastructure often generates insufficient revenue from user charges to recover investment costs. This makes affordability, fiscal sustainability and accountability central to the design of such partnerships.

The delegation also learnt from other countries’ projects, including their approaches to structuring transactions, allocating risks and implementing social sector partnerships.

The lessons, the statement said, would help inform Nigeria’s own pipeline of social infrastructure PPP projects.

The forum built on its inaugural edition in 2024, which brought together more than 30 African PPP units to discuss climate-resilient infrastructure.

See also  FG unveils new strategy to tackle housing deficit

Source: punchng.com

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