The Manufacturers Association of Nigeria (MAN) has called on manufacturers to accelerate the adoption of Artificial Intelligence (AI), advanced technologies and energy-efficient solutions to reduce production costs, improve energy security and strengthen the competitiveness of the country’s industrial sector.

The appeal was made at the 2026 Manufacturers Energy Security and Energy Efficiency Summit held in Lagos, where industry stakeholders and government representatives discussed how technological innovation, sustainable energy supply and structured financing could address persistent energy challenges facing Nigerian manufacturers.

The summit was jointly organised by Manufacturers Power Development Company Ltd. (MPDCL), GIZ and the Nigerian Energy Support Programme (NESP).

Speaking at the event, MAN President, Ifeanyi Okoye, highlighted the association’s industrial energy cost reduction and adoption programme, which is designed to encourage manufacturers to invest in factory rooftop solar installations, battery energy storage systems, captive natural gas solutions and smart energy management networks.

He explained that the initiative was developed in response to escalating energy expenses, which have placed considerable pressure on manufacturing operations and weakened the competitiveness of businesses.

According to Okoye, manufacturers currently spend approximately 40 per cent of their profits managing energy-related challenges. He identified high electricity tariffs, unreliable grid supply and continued dependence on fossil fuels as major constraints affecting industrial production.

He said the summit would provide manufacturers with opportunities to access financial support for transitioning to more sustainable and efficient energy systems.

“The summit is to facilitate access to long-term financing instruments, climate funds, green investments, and asset-financing mechanisms to support manufacturers’ transition to more efficient energy systems,” he said.

Also speaking, MAN Director-General, Segun Ajayi-Kadir, emphasised that embracing emerging technologies was increasingly important for improving manufacturing efficiency, reducing energy consumption and strengthening operational resilience.

He explained that Artificial Intelligence and smart manufacturing systems could help businesses manage energy consumption more effectively, reduce production losses, minimise operating expenses and enhance product quality, particularly against the backdrop of persistent electricity supply challenges.

Chairman of the MPDCL Board of Directors, John Aluya, highlighted the financial burden associated with self-generated electricity, noting that its high cost had continued to erode manufacturers’ profit margins and undermine their ability to compete.

He stressed that access to reliable and affordable energy remained essential to the survival of Nigerian industries. He added that the summit was designed to identify workable approaches to the country’s industrial energy challenges.

Among the solutions discussed were solar photovoltaic systems, battery energy storage, captive gas power, improved energy efficiency and carbon credit monetisation.

Delivering the keynote address, Ulf Brackmann, Chief Executive Officer of IKAPITAL Family Office & Friends, spoke on the potential of Artificial Intelligence to transform industrial productivity and generate additional employment opportunities rather than displace workers.

He encouraged manufacturers to explore the opportunities presented by technological innovation and integrate AI into their operations to improve productivity.

However, Brackmann cautioned that manufacturers would struggle to achieve the full benefits of AI without dependable electricity and adequate digital infrastructure.

He warned against regarding artificial intelligence as an immediate solution to the industry’s operational and production difficulties, stressing that its effectiveness depended on the availability of essential infrastructure.

“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 stated.

SOURCE:Vanguard