A new Industrial Energy Consumption Survey conducted by the Energy Commission of Nigeria (ECN) in collaboration with the United Nations Industrial Development Organisation (UNIDO) has revealed that more than 40 percent of industries in key industrial hubs across Nigeria have disconnected from the national grid due to persistent power supply challenges.
The findings were unveiled in Abuja by Okon Ekpenyong, Industrial Energy Efficiency Consultant to the ECN, during a one-day National Sensitisation Workshop on Industrial Energy Efficiency and Best Practices in Nigeria, supported by UNIDO.
According to the survey, which covered Lagos, Ogun, Abuja, Kaduna, Kano, Port Harcourt, Warri, and Onitsha, industries are increasingly relying on diesel and compressed natural gas (CNG) to power operations.
The report also highlighted a staggering 300 percent rise in electricity tariffs, with unit prices jumping from 69.75 in 2023 to 209.5 in 2024. About 76 percent of industries surveyed are still on estimated billing systems, while nearly half of them remain unaware of basic housekeeping energy-saving measures.
Alarmingly, 90 percent of the industries lack a formal energy policy, and 76 percent are unfamiliar with the internationally recognised ISO 50001 Energy Management Standards.
Ekpenyong noted several challenges impeding industrial energy efficiency in the country, including fragmented policymaking, limited awareness of the benefits of industrial energy efficiency, and a lack of comprehensive industry databases for mapping and planning.
In his welcome address, Dr. Mustapha Abdullahi, Director General/Chief Executive Officer of ECN, described the workshop as part of the implementation of the Global Environment Facility (GEF)–supported project titled “Improving Nigeria’s Industrial Energy Performance and Resource Efficient Cleaner Production through Programmatic Approaches and the Promotion of Innovation in Clean Technology Solutions (NIG IEE/RECP Project).”
He explained that the initiative seeks to accelerate the adoption of industrial energy efficiency (IEE) and cleaner production practices to enhance enterprise productivity and environmental performance. “Energy efficiency is a way of managing energy consumption through efficient technologies and practices that minimise waste, ensuring less energy is used to deliver the same services,” Abdullahi said.
Highlighting the economic strain of high energy prices and subsidy removal, Abdullahi urged industries and policymakers to embrace energy efficiency and conservation to reduce operational costs and improve competitiveness.
He called for the development of knowledge-driven policies and regulatory frameworks that can address the negative impacts of poor energy access on the industrial sector.
Dr. Reuben Bamidele, National Programme Officer for UNIDO, commended the ECN for its commitment to the project, noting that energy costs now account for nearly 40 percent of industrial production expenses in Nigeria.
He emphasized the need for continuous collaboration between the public and private sectors to address energy inefficiencies and improve power reliability for industries.
The ECN and UNIDO stressed that the adoption of energy management systems like ISO 50001 and greater awareness of energy-efficient practices could significantly reduce production costs, boost competitiveness, and drive sustainable industrial growth in Nigeria.
