MAN and Power Ministry move to cut factory energy costs as Lagos plans summit

Nigerian manufacturers and the Federal Ministry of Power say they will work together to bring down the cost of running factories on electricity, as many plants continue to pay for grid power they barely receive.

The Manufacturers Association of Nigeria (MAN) announced the partnership at its second Energy Security and Energy Efficiency Summit in Lagos. The plan covers solar power, battery storage, factories generating their own electricity and better distribution.

MAN President Dr Ifeanyi Okoye said energy takes close to half of some factories' operating budgets. That pushes up the price of goods and puts jobs at risk, he said.

"When energy expenses claim nearly half of a factory's operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line," Okoye said.

He said many manufacturers run their own generators even while paying grid bills, and called for long-term, low-interest loans to fund the shift to cleaner energy.

Minister warns on illegal connections

Minister of Power Joseph Tegbe told the summit that investigators found about 14 industrial customers along one corridor who owe more than ₦400m in unpaid charges built up over several years.

He said such conduct starves the sector of money needed to keep the lights on and burdens customers who pay honestly. He promised to recover the money and hold those responsible to account.

Tegbe said the government has a four-part plan for the sector: standardising the grid, improving the sector's finances, making better use of existing assets, and expanding supply. A technical audit now in its fourth week will show where repairs are needed most, he said.

He said transmission capacity rose by more than 15,000 megavolt-amperes between 2023 and 2026, with another 1,300MVA added in the past two months. Lagos, which he said accounts for about half of Nigeria's electricity demand, is the first priority corridor, followed by the Niger Delta and Abuja.

MAN's South-East chairman, Ada Chukwudozie, put the gap in naira terms. A generator using about 0.28 litres of diesel per kilowatt-hour costs more than ₦560 per kilowatt-hour in fuel alone when diesel sells above ₦2,000 a litre, she said, against ₦209 to ₦225 for Band A grid customers.

She said pilot projects are under way in Anambra, Enugu, Ebonyi and Abia, including a planned 1.5-megawatt solar installation at Judy Polymer that could cut energy costs by more than half.

The electricity regulator said about $250m from the World Bank-backed Distribution Sector Recovery Programme is available to distribution companies to upgrade their networks. It also pointed to net-billing rules under the Nigerian Electricity Act 2023, which let eligible renewable energy customers send surplus power to the grid and earn credits.

Lagos summit to tackle supply

In Lagos, the state government said it will bring regulators, distribution companies, resellers and suppliers together at the 2026 Lagos Energy Summit from November 10 to 12.

Commissioner for Energy and Mineral Resources Biodun Ogunleye said the talks will cover regulation, metering, renewable energy and alternative fuels, including compressed natural gas and electric vehicles.

The ministry's permanent secretary, Ibilola Kasumu, said the summit will not be a "talk shop" but will put real problems before experts.

The state and the Federal Government are also discussing how to split regulatory responsibilities so Lagos has more control over its energy infrastructure, Ogunleye said.

What happens next: The Lagos summit holds from November 10 to 12. Manufacturers are watching whether the promised financing and grid improvements reach factories, and whether the minister's recovery drive affects their bills.