Nigerian manufacturers spent a combined N1.83 trillion on diesel in March and April, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The expenditure reflects rising reliance on self-generated power due to unstable electricity supply. Diesel spending increased from N849.6 billion in March to N980.9 billion in April, with daily consumption rising from 14.5 million litres to 17.3 million litres over the same period. The fuel powers generators that run production machinery, assembly lines, cold storage units and other essential operations in industrial facilities. Without diesel, many factories would be unable to operate at full capacity or risk shutting down entirely. The Manufacturers Association of Nigeria (MAN) stated that energy costs account for about 40 per cent of operating expenses, a burden worsened by recent diesel price hikes. Executive Director of Universal Luggage Industries in Lagos, Frank Onyebu, said frequent power outages have disrupted production and inflated costs. "Just today alone, we've had two major power outages. Our machinery has been affected, and our production costs have gone through the roof," Onyebu said. He added that unsold stock has piled up in warehouses, forcing the company to sell below cost. Onyebu called on the government for intervention, warning that many manufacturers may collapse without support. MAN Director-General Segun Ajayi-Kadir noted the unsustainable strain on businesses. Industry stakeholders are urging reforms in the power sector to reduce dependence on diesel and ease the financial pressure on manufacturers.
Frank Onyebu says his factory faces repeated outages and soaring diesel costs, yet continues to sell below cost to move stock. This means manufacturers are operating at a loss while funding their own energy supply. The N1.83 trillion spent on diesel in two months could have expanded production or created jobs if grid power were stable. Instead, businesses are burning cash just to stay open.
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