Get Guardian on GoogleNigerian manufacturers risk losing access to international markets unless they embrace cleaner energy sources and more efficient production technologies, the Minister of Innovation, Science and Technology, Dr Kingsley Udeh, has warned.
He gave this warning at the Manufacturers Energy Security and Efficiency Summit, themed: “Innovative Energy for Cost-Effective Smart Manufacturing with Structured Financing,” where he urged industries to align their operations with emerging global manufacturing standards.
Udeh said the global manufacturing landscape had moved beyond Industry 4.0 to Industry 5.0, making affordable, cleaner and smarter energy increasingly central to industrial competitiveness.
According to him, manufacturers must adopt emerging technologies and energy-efficient practices while developing local solutions to reduce production costs and remain competitive.
“Smart manufacturing is no longer just about cheaper labour; it is about cheaper, cleaner and smarter energy. If Nigerian manufacturing does not embrace this trend, we will not remain competitive. Nigeria cannot achieve energy security by simply purchasing energy solutions. We must build those solutions ourselves,” he said.
Outlining the ministry’s intervention plans, Udeh identified research commercialisation, innovation ecosystem development and energy efficiency networks as priorities under its three-point agenda.
He said the ministry is redirecting research institutes from conventional research activities towards market-driven innovations that could be deployed on factory floors.
He also disclosed plans to promote industrial Internet of Things (IoT) and Artificial Intelligence (AI) applications for real-time energy monitoring, enabling manufacturers to identify waste and optimise power consumption.
He added that they are working with the Manufacturers Association of Nigeria (MAN), through the National Centre for Technology Management, to establish an Energy Efficiency Network that would provide relevant data and support improved industrial energy management.
According to him, the ministry is also collaborating with the Standards Organisation of Nigeria (SON) to introduce a green manufacturing certification scheme that would give energy-efficient businesses a competitive advantage and improve their access to carbon credits.
On financing, he said discussions are ongoing with the Ministry of Finance and other national partners to establish a green innovation fund offering concessional financing to manufacturers adopting locally developed energy technologies.
He warned that emerging green trade regulations, particularly in Europe, could impose additional costs on products manufactured with carbon-intensive energy, threatening the competitiveness of Nigerian exports.
“Europe will increasingly impose costs on products manufactured using carbon-intensive energy. If we do not transition to sustainable manufacturing, our exports risk being locked out of international markets. This is not romanticism; it is a matter of business survival,” he said.
Also speaking, MAN’s Director-General, Segun Ajayi-Kadir, said the traditional model of industrial operations, which relies heavily on expensive, carbon-intensive diesel generators and passive consumption of grid electricity, is no longer sustainable.
He said Nigerian factories must become smarter, leaner and more technologically advanced to compete locally, under the African Continental Free Trade Area (AfCFTA) and in the global market.
Ajayi-Kadir said the summit’s focus is on practical applications of smart technologies, AI integration and energy innovations, alongside access to structured financing for new energy projects and expansion of existing manufacturing capacity.
He noted that energy efficiency extends beyond equipment upgrades to include organisational culture, accountability and employee participation.
According to him, MAN, MPDCL and partners under the German Agency for International Cooperation’s Nigerian Energy Support Programme (GIZ-NESP) have prioritised the expansion of Energy Efficiency Networks (EENs).
He said the networks have demonstrated that improved energy management, regular energy audits and continuous employee training could deliver immediate savings at little or no cost.
He further disclosed that the summit has also recognised manufacturing plants that have established benchmarks in reducing energy waste and carbon footprints, urging other factory owners to adopt similar practices.
Discussions at the summit examined the application of AI-powered energy management systems to monitor, predict and optimise factory electricity consumption in real time, as well as advances in hybrid solar-storage systems, green hydrogen applications and high-efficiency industrial machinery to reduce energy consumption per unit of output.
Participants also examined regulatory developments in the electricity sector, including state-level electricity market reforms, net-metering policies and opportunities for manufacturers to earn additional revenue through carbon credits generated from clean energy investments.
The discussions further highlighted the importance of Environmental, Social and Governance (ESG) compliance in improving manufacturers’ access to financing.
Meanwhile, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said increasing energy supply alone would not resolve the challenges confronting manufacturers without corresponding improvements in energy efficiency.
She called for greater adoption of energy-efficient technologies and practices to reduce operating costs, improve productivity and strengthen industrial competitiveness.
Eyesan identified increased investment in gas production and processing, improved compliance with domestic gas delivery obligations and stronger infrastructure reliability as essential to ensuring dependable energy supply to industries.
She also advocated expanded gas utilisation in manufacturing and greater promotion of energy efficiency across industrial operations.
