By: The guardian

Nigerian manufacturers are facing a severe crisis due to the country's consistent and debilitating power outages. This issue has been highlighted by the World Bank’s Energy Progress Report 2025, which ranked Nigeria as the African nation with the worst power supply. The situation is characterized by frequent national grid collapses and daily blackouts that cripple industrial operations.

The chair of the Pan-African Manufacturers Association (PAMA), Mansur Ahmed, has expressed deep concern over the impact of these outages. He stated that the unreliable power supply has forced manufacturing companies to drastically reduce their operating hours or shut down temporarily. This has severely disrupted production cycles and increased operational costs across the sector.

A primary consequence of the grid's unreliability is the massive financial burden placed on manufacturers, who are compelled to rely on expensive alternative energy sources. According to the Manufacturers Association of Nigeria (MAN), local manufacturers spent N1.11 trillion on alternative power last year, a sharp increase of 42.3% from the previous year. This reliance on costly diesel generators significantly drives up production expenses.

The root causes of the power crisis are multifaceted and long-standing. Key issues identified include outdated power infrastructure, rampant vandalism, poor maintenance of existing facilities, and a critical lack of investment in generation capacity. These systemic failures have created an energy deficit that the national grid has been unable to address.

The economic repercussions are profound, threatening Nigeria's economic stability and eroding investor confidence. Ahmed lamented that the manufacturing sector, which is a vital driver for structural transformation and inclusive growth, is being severely constrained. The result is stunted productivity, lost investment opportunities, and an industry unable to compete effectively.

Data from a World Bank Enterprise survey underscores the severity of the problem, revealing that Nigerian firms experience an average of 190 days of power downtime per year. This figure starkly contrasts with other African nations like South Africa, Kenya, and Senegal, which experience only a few days of downtime annually, highlighting the extreme nature of Nigeria's energy poverty.

In response to the crisis, industry leaders are calling on the government to implement significant and immediate reforms. Key recommendations include expanding and strengthening the national grid, implementing market-based pricing reforms, integrating energy policy with industrial strategy, and promoting private sector investment in renewable and decentralised energy solutions to provide more reliable power.