S/East companies shutting down due to rising energy costs – MAN

The Manufacturers Association of Nigeria (MAN) has warned that the manufacturing sector in the South‑East is deteriorating, citing rising energy costs and limited access to finance as key factors driving companies to shut down.

Lady Ada Chukwudozie, MAN chairman for Anambra, Enugu and Ebonyi states, made the remarks during the MAN South‑East Stakeholders’ Industry Conversation in Awka, Anambra State.

The meeting was called to discuss issues around electricity regulation, billing transparency and the decline in industrial productivity across the region.

Chukwudozie noted that the few factories still operating are running at less than 30 percent of their installed capacity because of soaring electricity tariffs, high energy costs and a lack of credit facilities.

She said the difficult operating environment prompted the roundtable, emphasizing that manufacturing remains vital for economic growth, industrialisation and job creation.

“The manufacturing sector cannot thrive in an environment of uncertainty,” she warned, adding that without urgent action the South‑East’s industrial activity could worsen, threatening employment and regional economic stability.

Chukwudozie called for power‑sector reforms grounded in transparency, accountability and measurable performance standards. She urged the adoption of agreed electricity supply hours, accurate delivery levels and compensation mechanisms when supply consistently falls short.

She also urged regulatory authorities to strengthen oversight of electricity providers and improve power supply to industrial clusters across the South‑East.

Participants at the forum expressed concern that manufacturers are increasingly unable to cope with rising production costs, exacerbated by unreliable electricity supply and the growing expense of alternative energy sources. They warned that without affordable and stable energy, more companies may scale down or shut down entirely.

In his keynote address, former Chairman and Chief Executive Officer of the Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, urged South‑East governments to adopt deliberate policies that prioritise electricity supply to industrial clusters. Amadi also advocated pricing frameworks that would encourage manufacturers to expand production and invest in growth.

The meeting brought together manufacturers, regulators and other industry stakeholders to explore practical solutions for revitalising industrial output and addressing the persistent power challenges affecting businesses in the region.

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