Power Remains Biggest Obstacle to Industrial Growth — Minister

The Minister of State for Industries, Senator John Enoh, has identified inadequate and costly electricity supply as one of the biggest obstacles to Nigeria’s industrial growth, warning that businesses are spending heavily to generate power for their operations.

Enoh said Nigeria’s recent economic growth was encouraging but stressed that the country must sustain reforms and accelerate efforts to translate economic expansion into improved living standards and greater industrial productivity.

Nigeria’s economy grew by 4.43 per cent year-on-year in the second quarter of 2026. Enoh said the performance demonstrated that reforms were beginning to produce results, but noted that persistent structural challenges, particularly electricity supply, continued to limit the country’s industrial potential.

He explained that manufacturers and other industrial operators were being forced to spend more on alternative sources of electricity, increasing their production costs and making locally manufactured goods less competitive.

The minister said the Federal Government had recognised the importance of addressing these challenges as part of its broader industrialisation strategy. He pointed to the recently launched Nigerian Industrial Policy as the framework for strengthening manufacturing, improving investment and supporting sustainable industrial expansion.

The policy, approved by the Federal Executive Council before its launch in February 2026, is intended to provide a coordinated approach to industrial development and support President Bola Tinubu’s ambition of growing Nigeria’s economy to $1tn by 2030.

Enoh stressed that power was not the only issue affecting industrial development, with infrastructure, financing, investment and competitiveness also requiring attention. However, reliable and affordable electricity remains particularly important because of its direct impact on the cost of production.

The minister’s comments come amid growing concerns over the burden of energy costs on Nigerian manufacturers. Industry stakeholders have repeatedly warned that businesses relying on diesel generators face substantially higher operating expenses than competitors in countries with more reliable electricity.

The National Sugar Development Council recently estimated that Nigerian manufacturers spent about N1.34tn generating their own electricity in 2025, while industrial electricity costs were significantly higher than those in major Asian manufacturing economies.

Enoh said sustained reforms, investment and effective implementation of the industrial policy would be necessary to ensure that economic growth translates into stronger manufacturing, more jobs and broader prosperity.