Get Guardian on GoogleThe CEO of IKAPITAL Family Office & Friends, Dr Ulf Brackmann, has said artificial intelligence can cut costs and boost efficiency for Nigerian manufacturers, but only where factories have dependable electricity and sound digital foundations.
Brackmann spoke in an interview at the 2026 Manufacturers Energy Security and Energy Efficiency Summit in Lagos, where he addressed technology, investment and skills development in the country’s manufacturing sector.
He warned manufacturers against seeing artificial intelligence (AI) as an instant solution to their production challenges.
“AI is very often seen as a magic pill or sold as a magic pill to manufacturers as if it would solve all the problems. No, it doesn’t,” he said.
According to him, AI can support specific areas of production, including energy use, product quality, machine performance and overall process efficiency.
Brackmann stressed, however, that the technology would only be effective when businesses had established efficient operational processes and reliable digital sytems.
Manufacturers, he said, must first ensure their production processes run efficiently and that relevant operational data is available, a requirement that makes digitalisation necessary.
He identified unreliable and expensive electricity as a major obstacle to the adoption of advanced technology and expanding production, adding that investors would be reluctant to support manufacturers who cannot keep their machines running.
“How can you scale a business if you have no power to do so, and if the power is just pricing out and killing your margins?” he asked.
On efforts to attract investment and technology, Brackmann said his organisation is working with the Manufacturers Association of Nigeria (MAN) to connect local manufacturers with international investors and technology providers, including energy, software and AI firms, based on each company’s business case.
The partnerships, he explained, are intended to help manufacturers secure the funding and technology they needed to expand their businesses, while skills could also be developed locally where expertise is lacking.
Brackmann said, reliable electricity, improved production processes and appropriate technology, would make Nigerian manufacturers more competitive and attract long-term investment.
