The Manufacturers Association of Nigeria (MAN) has unveiled an ambitious electricity initiative aimed at reducing power tariffs for manufacturers in the Southeast by 42.5 per cent, a development industry stakeholders say could significantly lower production costs, improve competitiveness and accelerate industrial growth in the region.
Under the initiative, electricity costs for participating manufacturers are expected to drop from N209 per kilowatt-hour to N130 per kilowatt-hour through a dedicated power supply scheme to be coordinated by the newly established MAN Power Development Company Limited (MPDCL).
The initiative was unveiled on Friday at the MAN Southeast Industrial Energy Solutions and Investment Symposium held in Awka, Anambra State, with the theme: “From High Energy Costs to Affordable Power: An Opportunity for Manufacturers.”
Chairman of MAN Southeast Zone, covering Anambra, Ebonyi and Enugu states, Dr. Ada Chukwudozie, said the project represents a strategic intervention designed to tackle one of the biggest obstacles confronting Nigerian manufacturers—high and unreliable energy costs.
She explained that the dedicated power programme would provide industries with affordable, reliable and sustainable electricity while reducing dependence on diesel-powered generators that have substantially increased production costs over the years.
According to her, the initiative is expected to improve productivity, encourage expansion of existing factories, attract fresh investments and strengthen the competitiveness of Nigerian products in both domestic and export markets.
“Energy is not merely another production input; it is the engine of productivity. It powers our factories, drives efficiency, protects competitiveness and determines our capacity to grow.
“When energy becomes unreliable or unaffordable, production costs rise, investment slows, expansion becomes difficult and competitiveness suffers,” Chukwudozie said.
She disclosed that MPDCL, working with financial institutions, technology providers and implementation partners, had developed an integrated framework that would enable manufacturers to migrate to more efficient and affordable energy solutions.
A Major Burden on Nigerian Manufacturers
The initiative comes against the backdrop of persistent complaints by manufacturers over soaring energy costs, which have remained one of the leading drivers of high production expenses in Nigeria.
Many industries spend hundreds of millions of naira annually on diesel and gas to power their operations because of unreliable electricity from the national grid. Rising energy costs have contributed to factory closures, lower capacity utilisation, reduced profitability and higher prices of locally manufactured goods.
In recent years, the Manufacturers Association of Nigeria has repeatedly warned that escalating electricity tariffs, foreign exchange volatility, high interest rates, multiple taxation and logistics bottlenecks are eroding the competitiveness of the country’s manufacturing sector.
Analysts believe that a reduction of over 40 per cent in electricity costs could provide significant relief to manufacturers, particularly small and medium-scale industries operating in the Southeast.
The initiative also aligns with Nigeria’s broader efforts to deepen industrialisation, increase non-oil exports and leverage opportunities under the African Continental Free Trade Area (AfCFTA), where competitive production costs are essential for manufacturers seeking access to regional markets.
Soludo Backs Private Sector-Led Energy Solutions
Declaring the symposium open, Governor Chukwuma Soludo of Anambra State, represented by the Secretary to the State Government, Mrs. Chiamaka Nnake, described affordable and reliable electricity as the foundation of sustainable industrial development.
He reaffirmed the state government’s commitment to creating an enabling environment for businesses through reforms that encourage private sector investment in electricity generation and distribution.
According to the governor, Anambra has continued to strengthen its electricity ecosystem through the operationalisation of the Anambra State Electricity Regulatory Commission (ASERC), infrastructure development and policies designed to expand private participation in the state’s electricity market.
He said industrial transformation could only be achieved through strong collaboration among governments, manufacturers, financial institutions, technology providers and investors.
Soludo commended MAN and the MAN Power Development Company Limited for designing what he described as a practical and innovative solution to the energy challenges confronting industries.
Renewable Energy to Drive the Initiative
Managing Director of Sabrud Consortium, Mr. Chiso Nwangwu, said the renewable energy company would provide end-to-end technical support for the initiative.
According to him, the company specialises in the design, procurement, construction and maintenance of solar power systems, battery energy storage facilities and electrical infrastructure for industrial, commercial and institutional clients.
He said the partnership would deliver sustainable energy solutions capable of improving industrial productivity while reducing manufacturers’ dependence on fossil fuels.
Electricity Reform Opens New Opportunities
Delivering the keynote address, Chairman of the Anambra State Electricity Regulatory Commission (ASERC), Prof. Frank Okafor, said predictable and affordable electricity remains indispensable for industrial competitiveness.
He noted that continued investment, sound regulation and efficient energy management were necessary to make electricity more affordable for businesses.
Okafor urged consumers to embrace energy efficiency measures while assuring investors that Anambra remained open to innovative projects capable of lowering electricity costs across the state.
Industry Leaders Launch MPDCL
The high point of the symposium was the official unveiling of the MAN Power Development Company Limited (MPDCL) by the National President of MAN, Chief Francis Meshioye, alongside the Anambra State Commissioner for Power and Water Resources, Mr. Casmir Agamadu, and other industry leaders.
Also present at the event was the Managing Director of Juhel Pharmacy, Dr. Eric Okoye, who chaired the occasion.
Why the Initiative Matters
The Southeast hosts one of Nigeria’s largest concentrations of manufacturing and industrial enterprises, spanning pharmaceuticals, food and beverages, plastics, chemicals, textiles, construction materials and agro-processing.
Industry experts believe that if successfully implemented, the dedicated power scheme could become a model for industrial clusters across Nigeria, particularly following the implementation of the Electricity Act 2023, which decentralised electricity regulation and empowered states to establish independent electricity markets.
The initiative is also expected to complement President Bola Tinubu’s industrialisation agenda by lowering production costs, improving the competitiveness of locally manufactured products, stimulating investment, creating jobs and enhancing Nigeria’s export potential under AfCFTA.
For manufacturers grappling with rising operating costs, the proposed reduction in electricity tariffs offers more than immediate financial relief. It represents a strategic step towards restoring industrial confidence and positioning Nigeria’s manufacturing sector for sustained growth in an increasingly competitive regional and global marketplace.
