More than 60% of manufacturing companies in Nigeria have been forced to exit the national grid due to unreliable power supply, according to the Minister of Power, Adebayo Adelabu.
The Minister made this announcement during the release of the National Integrated Electricity Policy (NIEP) and the public presentation of the Integrated Resource Plan (IRP). He revealed that many manufacturers have resorted to self-generating power due to unreliable electricity supply.
He explained that this situation has driven up production costs and rendered Nigerian goods less competitive in the global market.
The IRP report was produced in collaboration with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF).
Adelabu emphasized that the launch of the new policy would help transform Nigeria’s power sector and encourage the return of manufacturing firms that had disconnected from the national grid.
He also mentioned that the policy document has already been submitted for approval by the Federal Executive Council (FEC).
Adelabu stated, “Currently, over 60% of our manufacturing industry is completely off-grid. They rely on self-generation, not because they are located in rural or semi-urban areas, but because they have access to electricity. However, the reliability of this access is a major concern. Many manufacturing processes are highly sensitive and cannot afford even a minute-long dip in power supply. As a result, these industries choose self-generation despite its high cost, rather than risking unreliable grid electricity.”
He further explained, “This situation makes our locally produced goods less competitive. To drive economic growth, industrialization, and national development, we must ensure grid reliability. If we can restore these companies to the grid, it will lower production costs, reduce inflation, and make Nigerian products more competitive against imports.”
Adelabu also estimated that $32.8 billion needs to be invested in the power sector by 2030 to achieve universal electricity access. He noted that $17 billion of this amount is expected from the public sector, while approximately $15.8 billion will come from the private sector.
