Nigeria’s Power Shortage Costs Manufacturers N10.1tn

The Manufacturers Association of Nigeria has highlighted that the country’s inadequate electricity supply is impeding the profitability of manufacturers, resulting in an annual economic loss estimated at N10.1tn. This amount represents approximately two percent of the country’s Gross Domestic Product.

According to the association,, the unfavorable circumstances have placed the country in a highly unfavorable position for conducting business, ranking at 171 out of 190 countries.
The manufacturers issued a statement in response to President Bola Tinubu’s endorsement of the Electricity Bill.

MAN has stated that the existing power supply is insufficient to meet the energy needs of both the manufacturing sector and the entire population.

However, the association acknowledged that the effective implementation of the Electricity Act 2023 has the potential to bring about significant transformation in the manufacturing sector.

The statement partly read, “As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariff to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.

“The country’s epileptic power supply is one of the prominent reasons for the relocation of some of our members. Provided the new Act adequately addresses the challenges in the power sector, we are quite optimistic that such development will encourage the inflow of manufacturing FDI, boost the performance of the sector and increase the sectoral contribution to the economy.”

Furthermore, MAN expressed optimism that if effectively utilized, such substantial revenue can help address the infrastructure gaps in numerous states without imposing additional tax burdens on manufacturers.