Power Outages, Rising Costs Slow Manufacturing Growth in Nigeria - NESG
Frequent power outages, rising production costs and limited access to credit are slowing manufacturing growth in Nigeria, according to the October 2026 Business Confidence Monitor (BCM) by the Nigerian Economic Summit Group (NESG). The report highlights the challenges faced by businesses in sustaining operations amid persistent infrastructure challenges.
Nigeria's Manufacturing Growth Challenges
- Frequent power outages impede manufacturing operations and increase production costs
- Limited access to credit makes it difficult for businesses to expand and invest
- Increased production costs strain profit margins and hinder growth
Businesses Struggling to Operate
Businesses in Nigeria are facing significant challenges in sustaining operations amid persistent infrastructure challenges. The report highlights the impact of power outages on manufacturing growth.
Vanguard reports that frequent power outages, which last for extended periods, are causing production delays and increasing production costs for manufacturers. This, in turn, affects their profit margins and makes it difficult for them to expand and invest.
NESG Recommendations
The NESG Business Confidence Monitor provides recommendations to address these challenges:
- Improved power supply infrastructure to reduce power outages and stabilize electricity supply
- Increased access to credit for businesses to support expansion and investment
- Development of cost-effective energy alternatives to reduce production costs
NESG suggests that improving power supply infrastructure, increasing access to credit, and exploring cost-effective energy alternatives could help address the challenges faced by the manufacturing sector in Nigeria.
</body> </html><small>Source: AllAfrica Nigeria — read the original story there.</small>
