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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.

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“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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Nigeria, Indonesia trade tops $3bn annually — envoy reveals

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Nigeria and Indonesia’s bilateral trade has consistently exceeded $3bn annually, the Indonesian Ambassador to Nigeria, Bambang Suharto, has said.

The ambassador said the trade relationship had positioned Nigeria as one of Indonesia’s foremost trading partners in Africa, while calling for greater economic cooperation between both countries.

“Our bilateral trade has consistently surpassed USD 3 billion annually, cementing Nigeria’s position as one of Indonesia’s foremost trading partners in Africa,” he said.

Suharto said Nigeria supplied an essential source of energy contributing to Indonesia’s energy security.

“Nigeria supplies the essential source of energy that contributes to Indonesia’s energy security, while Indonesian products have become household staples for Nigerian consumers and businesses,” Suharto said.

He said some Indonesian products had also become established in Nigeria through local production and Nigerian workers, describing the development as evidence of the value of economic partnerships beyond the exchange of goods.

He added, “Yet, there remains considerable room to grow. Together, Indonesia and Nigeria represent a vibrant market of more than 550 million people, defined by young populations, dynamic businesses, and substantial natural and human resources.”

According to him, the combined economic potential provided a foundation for expanding trade, investment, technological exchange and employment opportunities.

Suharto said Indonesian companies operating in Nigeria were contributing to the bilateral relationship through investment, job creation and corporate social responsibility initiatives.

“Our ultimate ambition is not simply to trade more, but to cultivate a resilient partnership in which businesses on both sides thrive, local industries develop, and our people directly reap the benefits of the opportunities we create together,” he said.

He said Indonesia also attached importance to educational and cultural exchanges with Nigeria, noting that its scholarship programmes had enabled Nigerian students to study in Indonesia and establish lasting relationships.

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In his remarks, the Permanent Secretary, Ministry of Foreign Affairs, Ambassador Dunoma Umar Ahmed, said Nigeria and Indonesia had considerable scope to deepen their economic partnership.

Ahmed said Nigeria was particularly interested in Indonesia’s experience in industrialisation, manufacturing, digital transformation, infrastructure development, agriculture, maritime development and the expansion of small and medium-sized enterprises.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment,” he said.

The permanent secretary urged greater interaction between the private sectors, chambers of commerce, financial institutions and business communities of both countries.

He identified agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy and creative industries as areas with significant potential for increased trade and investment.

Ahmed also called for efforts to address practical constraints to bilateral commerce, including market access, business information connectivity and the facilitation of contracts between businesses in both countries.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment.

“Our two countries should therefore continue to encourage greater interaction between our private sectors, chambers of commerce, financial institutions, and business communities. There is significant potential for increased trade and investment in areas including agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy, and the creative industries,” Dunoma said.

Source: punchng.com

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Airlines face disruptions as fuel costs soar

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Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

Passengers who bought Air Peace tickets last Friday spent the night at the Abuja airport following flight cancellations and delays.

The PUNCH learnt that on Friday alone, Lagos, Maiduguri and Asaba-bound passengers remained at the Nnamdi Azikiwe International Airport as the airline delayed boarding for several hours and cancelled a number of flights.

Passengers who spoke with our correspondent claimed that the airline had failed to provide reasons for the disruptions.

Our correspondent gathered that Lagos-bound passengers scheduled to take off from Abuja at about 4:00 pm, as well as another set scheduled to depart earlier, remained at the airport until late that night.

While Lagos-bound passengers left the same night, Asaba- and Maiduguri-bound passengers spent the night at the airport, leading to a series of protests within the aerodrome.

Meanwhile, an airport source who refused to give her name for fear of reprimand had told our correspondent at the time that the passengers might still be airlifted before midnight to avoid disruptions to Sunday’s operations.

The source said, “Truly, many passengers sat helplessly at the airport. I learnt from the workers that it was a fuel-related issue, but only the airline can really explain what happened.”

When contacted, the spokesperson for the Nigeria Civil Aviation Authority, Michael Achimugu, told our correspondent that he gathered that the airline had been speaking with the passengers as events unfolded. He confirmed that issues relating to a lack of fuel had grounded the airline’s aircraft.

Achimugu did not, however, provide further information on why the airline was experiencing a shortage of fuel.

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Achimugu said, “Yes, my CPOs have reported to me that the airline has been unable to fly the passengers because of fuel-related issues. I also learnt they have been updating the passengers, but you know when passengers get angry, they may not even listen to whatever information they are being provided with.”

When asked what exactly the issue was, he said, “What my CPOs told me is what I have told you. When we have more information, we will let you know.”

Efforts to speak with the airline’s spokesperson, Efe Osifo-Whiskey, were unsuccessful. He neither picked up his calls nor responded to text messages seeking clarification at the time.

Also, in a statement by the airline, Air Peace said the delay was caused by the unavailability of Jet A1 aviation fuel. Air Peace added that the fuel shortage also affected other airlines.

The Air Peace statement read partly, “The initial delays to our Abuja operations were occasioned by the unavailability of Jet A1 aviation fuel, which affected Air Peace and other airlines operating from the Abuja airport. Upon the availability of fuel, our affected flights commenced operations accordingly.

“However, our Abuja-Maiduguri service could not subsequently operate as planned because the tower in Maiduguri, which had given an extension for our flight to come in, later came back, as at the time of our calling for boarding, to state that the airport had become VFR and would no longer fly beyond sunset.”

While apologising to passengers, Air Peace added, “Throughout the disruption, passengers were duly informed of the delays and provided with refreshments. Following the cancellation, affected Maiduguri passengers were also provided with hotel accommodation, with arrangements made to operate the flight the following day.

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“We sincerely regret the inconvenience caused to our esteemed passengers and appreciate their patience and understanding. At Air Peace, the safety and wellbeing of our passengers remain paramount, and we will continue to prioritise these considerations in all our operations.”

However, sources among marketers said the product was available, although at a higher price. One of the sources told our correspondent that, “Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.

“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”

An airline source who also refused to give his name told our correspondent that a litre of Jet A1 currently sells for about N2,130 in Lagos and Abuja, while the price ranges between N2,180 and N2,230 per litre at airports outside the two major aviation hubs, depending on the location.

The source said although aviation fuel was available, the major challenge confronting airlines was the high cost of procuring the product, which he said had continued to drive up their operating expenses.

He added that the situation was particularly difficult for indigenous carriers because most of their revenues were generated in naira, while a substantial portion of their operating costs was either dollar-denominated or linked to foreign exchange.

According to the source, the high cost of operations has left several indigenous airlines struggling to remain in business, with some having to source funds from other areas to meet their aviation fuel obligations.

He called on the government to intervene in the situation to prevent total collapse of the operating carriers.

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Also, the Managing Director of Aero Contractors, Ado Sanusi, confirmed that the product is available in the country, dismissing the allegation of its scarcity. He, however, agreed that the cost of the product remained a major concern for operators.

Sanusi, who spoke against the backdrop of concerns over Jet A1 availability, said the emergence of the Dangote refinery has helped in making the product available. According to him, Jet A1 currently sells for about N2,000 per litre in Lagos, while the price is slightly higher outside Lagos by approximately N100 per litre.

He said: “I am not aware of the scarcity of aviation fuel in Nigeria. With the Dangote refinery, how can we experience scarcity of the product locally? The only problem is that it is expensive to purchase. Presently, the product goes for N2,000 per litre in Lagos, while it is slightly more expensive outside Lagos with about N100 difference.”

Sanusi also clarified that Aero Contractors was not indebted to aviation fuel marketers, saying the airline had a policy of settling its fuel bills as soon as they were presented.

“I can’t comment on any other airline’s debts, but one thing is sure: at Aero Contractors, we are not indebted to fuel marketers. We pay all our bills as and when due. For clarity’s sake, what I am saying is that once the bill is submitted to us, we settle it immediately at Aero Contractors. That’s the way we work here,” he said.

Source: punchng.com

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Thales to develop Nigeria’s new satellite

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Thales Alenia Space has signed a contract with the Federal Government-owned NIGCOMSAT Ltd to build NigComSat-2A, a new geostationary telecommunications satellite that will boost digital connectivity across Africa.

In a release on Wednesday, the firm said it signed the deal in Cannes, France, on September 14,  2026.

It noted that the French-Italian joint venture, owned 67 per cent by Thales and 33 per cent by Leonardo, will develop the satellite to deliver high-quality television broadcasting, reliable broadband internet and modern digital services including voice calls and streaming.

According to the release, NigComSat-2A, with a launch mass of nearly four tonnes, will cover West and Central Africa through to Southern Africa.

It is designed to improve access in underserved and remote communities where terrestrial networks remain limited. Its expected in-orbit service life exceeds 15 years and will be based on Thales Alenia Space’s Spacebus B2 platform.

NigComSat’s Managing Director and Chief Executive Officer, Nkechi Egerton-Idehen, described the contract as a major step forward for Nigeria.

“The signing of this contract represents a bold step in Nigeria’s journey toward digital transformation,” she said.

“NigComSat-2A will not only strengthen our nation’s satellite communications capacity but also expand access to reliable broadband and digital services for millions of Africans, especially in underserved and remote communities. This project underscores NIGCOMSAT’s commitment to driving connectivity, fostering innovation, and enabling economic growth across the continent. We are proud to partner with Thales Alenia Space in delivering a satellite that will empower Africa’s digital future.”

Also, the President and Chief Executive Officer of Thales Alenia Space, Hervé Derrey, welcomed the partnership, saying, “I would like to thank NIGCOMSAT for placing their trust in our company.

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“NigComSat-2A geostationary satellite will enable NIGCOMSAT to strengthen its competitive position by delivering reliable, high-quality services that meet the growing demand for connectivity and digital content worldwide. This announcement also underscores the success of our Spacebus B2 product line, renowned for its reliability, robustness and time-to-market efficiency.”

NIGCOMSAT Ltd, established on  April 4, 2006, under the Federal Ministry of Communications, Innovation and Digital Economy, owns and operates Nigeria’s geostationary communications satellites. Its current satellite, NigComSat-1R, launched in December 2011, was the first of its kind in Sub-Saharan Africa.

The new satellite is expected to support Africa’s expanding digital economy by providing greater flexibility and resilience in communications infrastructure, particularly in areas where ground-based networks are difficult to deploy.

Officials said it would contribute to digital inclusion, economic opportunity and wider access to information across the continent.

Source: punchng.com

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