Nigeria manufacturers face rising power costs and supply chain gaps

Nigerian manufacturers are facing significant operational hurdles due to rising energy costs and supply chain vulnerabilities. Data from the Manufacturers Association of Nigeria (MAN) reveals that spending on alternative electricity sources rose by approximately 21 percent, reaching N1.34tn in 2025, up from N1.11tn in 2024. This surge is driven by persistent grid unreliability, with daily power supply dropping from 16.7 hours in the first half of 2025 to 13.1 hours in the second half.

To mitigate dependence on expensive diesel generators and imported industrial components, there is a growing push toward local technological solutions. The MAN has endorsed Arridex’s 3D manufacturing hub in Lagos, highlighting the potential of additive manufacturing to produce critical parts locally. Reducing reliance on foreign-sourced machinery and components could help shield the industrial sector from foreign-exchange volatility, high freight costs, and global supply disruptions.