The Federal Government is planning to establish dedicated electricity transmission infrastructure linking available power generation to major industrial clusters across the country in a move aimed at improving electricity supply to manufacturers and reducing production costs.

The Minister of Power, Joseph Olasunkanmi Tegbe, disclosed this on Monday at the Manufacturers Energy Security and Energy Efficiency Summit in Lagos.

He said the government was considering a dedicated transmission connection between Alaoji and the Agbara industrial area in Ogun State to improve electricity delivery to manufacturing facilities.

“We are looking at dedicated transmission infrastructure that will connect available power generation to major manufacturing hubs, including the proposed connection between Alaoji and the Agbara industrial area,” Mr Tegbe said.

He explained that strengthening the link between electricity generation and industrial demand would help manufacturers access more reliable power and reduce their dependence on expensive alternative energy sources.

“Improving the connection between available generation and industrial demand is critical to ensuring that manufacturers have access to more reliable electricity and reducing the cost of production,” he added.

Four-pronged strategy

The minister outlined a four-pronged strategy to address Nigeria’s electricity challenges.

The plan focuses on improving liquidity and sustainability in the power sector, optimising existing generation and transmission assets, developing energy zones and expanding critical infrastructure.

According to him, the approach is intended to improve electricity delivery while ensuring that existing power resources are better utilised to meet the needs of businesses and industries.

Many Nigerian manufacturers currently depend on diesel, gas and other independent power sources to sustain operations because of unreliable grid electricity, increasing their operating expenses.

MAN launches energy cost reduction programme

The announcement coincided with the launch of the Manufacturers Association of Nigeria’s Industrial Energy Cost Reduction and Clean Energy Adoption Programme (IECRECAP).

The initiative is designed to help businesses access more affordable and sustainable energy solutions.

It is being implemented through the Manufacturers Power Development Company Limited, in collaboration with the Nigerian Energy Support Programme, implemented by GIZ, the Federal Ministry of Power and other partners.

MAN President, Dr Ifeanyi Okoye, identified high energy costs, unreliable grid electricity and increasing dependence on self-generation as major challenges undermining industrial productivity and the competitiveness of Nigerian manufacturers.

“High energy costs and unreliable grid electricity have continued to undermine industrial productivity and the competitiveness of Nigerian manufacturers,” he said.

Mr Okoye called for sustainable financing arrangements tailored to industrial energy projects, including investments in rooftop solar systems, battery storage, captive gas generation and smart energy management.

He said manufacturers needed practical and affordable energy solutions that would not place additional financial pressure on their businesses.

“Reliable and affordable energy is essential to strengthening local manufacturing capacity and ensuring that Nigerian products can compete effectively in regional and international markets,” he added.