Minister Of Power, Adelabu: 60% Of Manufacturers Go Off-Grid Due To Unstable Power Supply

Minister Of Power, Adelabu: 60% Of Manufacturers Go Off-Grid Due To Unstable Power Supply

The Minister revealed this during the launch of the National Integrated Electricity Policy (NIEP) and the public presentation of the Integrated Resource Plan (IRP). He noted that many manufacturers have resorted to generating their own power…..READ MORE

According to him, this shift has significantly increased production costs, making Nigerian goods less competitive in the market.

The IRP report was developed in collaboration with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF).

Adelabu emphasized that the introduction of the new policy is expected to transform Nigeria’s power sector and encourage manufacturing companies that had disconnected from the national grid to return. He added that the policy document has been submitted to the Federal Executive Council (FEC) for approval.

He explained, “Currently, over 60% of our manufacturing sector operates entirely off-grid. These businesses are not located in remote or semi-urban areas; they have access to electricity but face issues with reliability.

“We know that certain manufacturing processes cannot tolerate even a brief power interruption. Instead of risking production disruptions due to an unreliable grid, these companies prefer self-generation, despite its high cost.

“As a result, the cost of locally produced goods remains high, making them less competitive. To boost industrial growth, economic development, and national progress, we must ensure reliable electricity supply. This will encourage off-grid companies to reconnect, reducing production costs, lowering inflation, and enabling Nigerian-made products to compete with imports.”

Adelabu further estimated that Nigeria needs an investment of $32.8 billion in the power sector by 2030 to achieve universal electricity access. Of this amount, $17 billion is expected from the public sector, while the private sector is projected to contribute around $15.8 billion.