Manufacturers raise alarm over N1.35trn alternative power costs, 18,935 job losses
AI Executive Briefing
Gemini Flash AI~45s readThe Chemical and Non-Metallic Products Employers Federation (CANMPEF) has reported that despite national economic growth and improved foreign exchange stability in 2025, the manufacturing sector remains under severe pressure. The federation highlighted that high energy costs and financing hurdles have led to significant job losses and stagnant industrial output.
Context & Background
- ✦The Nigerian manufacturing sector is currently facing a disconnect between broader macroeconomic gains and factory-floor realities, characterized by high energy costs and limited access to affordable credit.
- ✦Manufacturers are calling for a more coherent tax framework and targeted relief for industrial inputs, similar to the relief provided for pharmaceutical raw materials.
Key Figures & Named Entities
•Chief Devakumar Edwin, President of CANMPEF and Vice President of the Dangote Group, led the call for urgent government intervention.•Manufacturing sector growth was recorded at 1.41% in 2025, while the sector's contribution to real GDP dropped to 8.05%.
Outlook & Next Steps
The outlook for 2026 depends on whether economic stabilization translates into lower operating costs. Manufacturers are closely monitoring the implementation of the new tax framework and potential environmental levies.
Key Takeaways
AI Summary- Nigerian manufacturers spent an estimated N1.35 trillion on alternative power in 2025, marking a 23% increase from the previous year.
- The manufacturing sector experienced 18,935 job losses in the first half of 2025, significantly higher than the 10,891 losses recorded in the same period of 2024.
- Despite a 3.87% national economic growth rate in 2025, the manufacturing sector's growth remained sluggish at 1.41%, with its contribution to real GDP falling to 8.05%.
Key Facts:March 2025 to March 2027: The Federal Government implemented import-duty and value-added tax relief on 875 pharmaceutical raw materials.24.48% in January to 15.15% in December 2025: Headline inflation declined from its January level to a year-end figure.January 1, 2026: New tax reforms aimed at harmonizing levies took effect.
Editorial Excerpt
“Nigeria’s economy grew by 3.87 per cent in 2025, up from 3.38 per cent in 2024, while headline inflation declined and the foreign exchange market became more stable"
Frequently Asked Questions About This Story
Why are manufacturers struggling despite improvements in macroeconomic indicators?
Manufacturers are grappling with high operating costs, specifically soaring energy expenses, expensive credit, weak consumer demand, and the burden of multiple taxes and levies.
What is the primary constraint identified by CANMPEF regarding electricity?
The primary constraint is the gap between demand and supply; while installed capacity exceeds 13,000MW, actual generation remains below 5,000MW against an estimated demand of 18,345MW.
