Cormart Nigeria Limited has pivoted to gas as its primary power source, reducing emissions while shielding its operations from rising diesel costs and grid instability.

The company now operates five gas engines with a combined capacity of 5MW, comprising 1.5MW at its head office in Ilupeju and 3.5MW at its production facility along the KM 51 Lagos–Ibadan Expressway. This transition has effectively relegated the previously used 2.0MW and 3.1MW diesel engines at both locations to backup roles.

The shift underscores a growing trend among Nigerian manufacturers grappling with persistent energy challenges, including high operating costs, unreliable grid supply and increasing environmental compliance pressures.

Cormart’s Technical Manager, Jawwad Alasa, said the transition was necessitated by prevailing operational realities in Nigeria’s industrial landscape.

Industry data show that while gas-powered systems require higher initial capital investment, they deliver lower lifecycle costs compared to diesel. This advantage is increasingly critical as manufacturers seek to optimise production expenses amid economic headwinds.

A recent minor overhaul conducted at Clarke Energy’s Lagos facility further highlights the growing in-country technical support capacity. The six-week intervention restored one of Cormart’s engines to optimal performance after 40,000 hours of operation, demonstrating improved maintenance capabilities within the domestic market.

Beyond fuel switching, the company has implemented a series of energy-efficiency measures, including steam-leak detection systems, routine energy audits and upgraded lighting infrastructure.

These interventions have collectively contributed to reducing operational costs and emissions footprint.

Industry estimates indicate that self-generated power accounts for as much as 30 to 40 per cent of total production costs for manufacturers, significantly eroding margins and competitiveness.

Managing Director for Clarke Energy in Sub-Saharan Africa, Yiannis Tsantilas, said the transition aligns with broader economic and food security objectives.

“While affordable food production is the core of a sustainable food value chain, it is equally important to adopt more efficient and reliable energy alternatives to lower production costs and increase the availability of affordable products for the Nigerian population,” he said.