MAN says many firms operating below 30% capacity amid rising electricity tariffs and worsening access to finance…..
The Manufacturers Association of Nigeria (MAN) has raised fresh concerns over the deteriorating state of industrial activity in the South-East, warning that escalating energy costs and limited access to funding are pushing more factories toward closure.
The warning was issued in Awka, Anambra State, during the MAN South-East Stakeholders’ Industry Conversation, where industry players gathered to assess worsening electricity challenges, billing concerns, and declining manufacturing output across the region.
Chairman of MAN for Anambra, Enugu and Ebonyi States, Ada Chukwudozie, said many surviving manufacturers are currently operating at less than 30 per cent of installed capacity due to rising electricity tariffs, unstable power supply, and high cost of alternative energy sources.
She said the harsh operating environment had made the stakeholder engagement necessary, stressing that manufacturing remains a critical driver of economic growth, job creation, and industrial development.
Chukwudozie warned that without urgent intervention, the South-East risks deeper industrial decline, with far-reaching consequences for employment and regional economic stability.
“The manufacturing sector cannot thrive in an environment of uncertainty,” she said.
She called for urgent reforms in the electricity sector, insisting that performance must be guided by transparency, accountability, and clearly defined service benchmarks such as agreed supply hours, actual delivery levels, and compensation mechanisms where utilities fail to meet obligations.
She also urged regulators to strengthen oversight of electricity distribution companies and prioritise stable power supply to industrial clusters across the region.
Stakeholders at the forum echoed similar concerns, noting that manufacturers are increasingly struggling to absorb rising production costs driven largely by unreliable electricity supply and expensive alternative energy options.
They warned that without affordable and stable power, more companies may be forced to scale down operations or shut down entirely, further weakening the region’s industrial base.
In a keynote address, former Chairman and Chief Executive Officer of the Nigerian Electricity Regulatory Commission (NERC), Sam Amadi, called on South-East state governments to deliberately prioritise electricity supply to industrial hubs.
He also advocated pricing frameworks that support industrial expansion and encourage manufacturers to invest in increased production capacity.
The stakeholders’ meeting brought together manufacturers, regulators, and industry experts to explore practical solutions to Nigeria’s persistent power challenges and their impact on industrial productivity.
