Manufacturers want power, tax reforms, to grow factory output for competitiveness - Businessday NG

…As firms’ alternative power spend nears N1.4trn in 2025

Nigerian manufacturers want urgent power and tax reforms to lift their factories’ output after firms spent N1.35 trillion in alternative energy generation in 2025.

At BusinessDay’s Manufacturing conference 2026 in Lagos, they argued that Nigeria’s electricity reforms have done little to cushion the adverse effects of poor electricity distribution caused by an inefficient national grid capacity.

They noted that fixing energy infrastructure, cutting tax costs, and improving logistics will help boost their output and competitiveness.

“Electricity supply is irregular, and manufacturers have to solve for alternative power. 35 percent of production costs go to energy,” said Oluchi Odimuko, assistant director, Sectoral and Regulatory Affairs at the Manufacturers Association of Nigeria (MAN), representing Segun Ajayi-Kadir, the director general.