Renewable Energy Transition: MAN Urges Manufacturers to Leverage Electricity Act 2023 Amidst $121bn Fuel Savings Projection
The Manufacturers Association of Nigeria (MAN) has intensified its advocacy for the widespread adoption of renewable energy solutions, urging industry players to enhance operational efficiency and mitigate the persistent challenges of unreliable electricity supply and escalating self-generation costs. This call to action aligns with the government’s ambitious vision for a diversified power generation mix, which projects substantial economic benefits.
Segun Ajayi-Kadir, Director General of MAN, highlighted that embracing renewable energy is crucial for Nigerian manufacturers facing the dual burden of inconsistent power and the high expense of generating their own electricity. These remarks follow pronouncements by the Minister of Power, Joseph Tegbe, who detailed Nigeria’s potential to save $121 billion in fuel costs by transitioning to a power generation framework dominated by renewable energy sources. The Minister presented these projected savings as a significant economic boon for businesses, households, and the government alike.
Speaking at the Lagos Chamber of Commerce and Industry’s (LCCI) 2026 Renewable Energy Outlook Conference, Minister Tegbe underscored that Nigeria’s Energy Transition Plan (ETP) positions renewable energy not merely as an environmental imperative but as a core economic strategy. The ETP forecasts that a 90% renewable energy penetration in the national power mix could yield fuel savings of $121 billion. While acknowledging the estimated annual capital expenditure of approximately $10 billion above business-as-usual requirements, the Minister framed this as a necessary and mobilizable investment rather than a financial burden.
The conference, themed “Nigeria’s Energy Transition Agenda: Power Sector Transformation for Industrial Competitiveness,” served as a critical forum for government officials and private sector stakeholders to deliberate on the future trajectory of renewable energy and necessary power sector reforms. Minister Tegbe outlined the ETP’s target of achieving a total installed electricity generation capacity of 277 gigawatts by 2060, with solar energy projected to be the predominant source. He noted that Nigeria, alongside South Africa, led Africa in solar power growth in 2025, a position sustained by the nation’s extensive solar resources, growing private investment, and supportive government policies.
Natural gas, the Minister clarified, will continue to play a vital role as a transition fuel during the scaling up of renewable energy deployment. With proven reserves of approximately 202 trillion cubic feet, Nigeria possesses sufficient gas resources to maintain reliable baseload capacity while renewables are integrated. “Gas is not our destination. But it is an indispensable companion on the journey,” Tegbe stated.
The Minister specifically urged manufacturers, processors, logistics operators, and technology firms to embrace renewable energy solutions and capitalize on the opportunities presented by the Electricity Act 2023. He declared, “The era of the diesel generator as your primary power source is drawing to a close. Embedded generation, industrial mini-grids, renewable energy procurement agreements, and direct connections to renewable independent power producers are now legally enabled under the Electricity Act 2023.”
Furthermore, Minister Tegbe revealed that the President Bola Tinubu administration’s energy reforms have attracted over $2 billion in new private sector investments, with sector revenues nearly doubling between 2023 and 2025, from approximately N850 billion to over N1.5 trillion. He called upon the organised private sector to actively support these reforms through advocacy and participation in state electricity market consultations, ensuring that tariff frameworks, grid access rules, and renewable energy procurement mechanisms are commercially viable.
Abba Aliyu, Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), emphasized that renewable energy must evolve beyond rural electrification to become a primary driver of industrial growth, manufacturing expansion, and digital infrastructure development. He posited that the increasingly electricity-intensive global economy, fueled by artificial intelligence, data centres, electric mobility, and advanced manufacturing, demands reliable, affordable, and clean power for countries to remain competitive.
Aliyu articulated that Nigeria can leverage renewable energy to bolster manufacturing, create employment, enhance exports, and establish itself as a regional clean energy hub, provided the transition is managed effectively. He advocated for mini-grids, solar-plus-storage systems, and distributed energy resources to be recognised as critical industrial infrastructure capable of powering markets, agro-processing clusters, technology parks, manufacturing corridors, and commercial hubs. “A mini-grid that powers homes changes lives. But a mini-grid that powers homes, a rice mill, a cold room, a welding cluster, a clinic, a digital services hub and a market changes an economy. That is the shift REA is driving, from energy access to productive power,” Aliyu explained.
The REA boss reiterated that manufacturers’ continued reliance on diesel generators inflates production costs, erodes competitiveness, and impedes expansion. He urged policymakers and investors to expedite the deployment of solar energy, mini-grids, and distributed renewable power systems, ensuring robust regulation, grid integration, and market coordination. Aliyu noted that the Electricity Act 2023 and the Nigerian Electricity Regulatory Commission’s Mini-Grid Regulations 2026 have significantly expanded avenues for commercially viable distributed energy projects and private sector investment nationwide.
The LCCI conference concluded with a consensus on the necessity for enhanced collaboration between the government and the private sector to unlock investment, improve energy reliability, and facilitate Nigeria’s transition to a more competitive, renewable-powered economy.
MAN’s Director General, Ajayi-Kadir, reiterated that while affordable and reliable energy is fundamental to industrial development and economic transformation, manufacturers have consistently borne the brunt of inadequate public power supply. He stated, “In Nigeria, however, manufacturers continue to grapple with the twin challenge of unreliable public electricity supply and the escalating cost of self-generation through diesel, gas and other alternative energy sources.” This persistent energy deficit, he added, has weakened manufacturers’ competitiveness, deterred investment, increased production costs, and constrained the sector’s growth and resilience.
Ajayi-Kadir concluded that the deployment of renewable energy infrastructure presents a pragmatic approach to fostering an energy-resilient economy and alleviating the financial pressure of high energy costs on businesses. Investments in clean energy, he asserted, will bolster industrial productivity, strengthen quality assurance systems, and enhance the competitiveness of ‘Made-in-Nigeria’ products and services. He stressed the imperative for public institutions and private sector operators to embrace innovation and sustainability in addressing Nigeria’s energy challenges, noting that the transition to energy-efficient and renewable technologies will reduce operating costs, attract investment, and support the nation’s climate resilience objectives. MAN remains committed to collaborating with stakeholders to advance policies and initiatives promoting industrial growth, innovation, and competitiveness.
