Nigeria’s manufacturing sector is losing a significant share of its energy input to avoidable inefficiencies, with weak maintenance culture and poor monitoring systems emerging as key culprits, according to fresh industry findings.
At a high-level stakeholders’ workshop in Lagos, industry leaders warned that unless factories institutionalise structured energy management systems, the sector will continue to bleed resources in an already challenging operating environment defined by high power costs and unreliable grid supply.
Industries lose 15% energy to weak maintenance – MAN
The Manufacturers Association of Nigeria (MAN) disclosed that factories across the country are wasting between 10 and 15 per cent of their energy due to maintenance lapses alone. The revelation followed a Cleaner Production Assessment conducted in 42 industrial facilities spanning four geopolitical zones.
The assessment was carried out under the United Nations Industrial Development Organization (UNIDO)-supported Industrial Energy Efficiency and Resource Efficiency Cleaner Production project, backed by the Global Environment Facility.
Presenting the technical findings, National Expert on Industrial Energy Efficiency and Resource Efficient Cleaner Production, Obafemi Adejumo, said the audit exposed a wide performance gap between Nigerian factories and global best practice benchmarks.
“There is a noticeable disparity between where our industries currently stand and where they should be in terms of energy optimisation,” he told participants.
“Some facilities are making progress, but many others are yet to integrate systematic energy efficiency frameworks.”
Compressed air and steam systems top the loss chart
The data revealed that compressed air systems account for roughly 25 per cent of electricity losses in many plants, primarily due to leakages, over-pressurisation and poor operational controls.
In at least one audited facility, optimisation measures were so effective that management was able to shut down one compressor unit entirely without disrupting output.
Steam systems were identified as an even larger source of inefficiency, contributing nearly 30 per cent of total energy losses in some operations. Inadequate insulation, boiler inefficiencies and excessive flue gas heat discharge were cited as major factors.
Lighting systems accounted for about 18 per cent of avoidable losses, while motor systems frequently ran at partial loads without Variable Speed Drives, leading to further wastage.
The recurring theme across facilities was weak maintenance protocols and reactive rather than preventive equipment servicing — reinforcing the headline finding that industries lose 15% energy to weak maintenance – MAN.
Sub-metering gap hampers accountability
A critical structural weakness highlighted by the report is the widespread absence of sub-metering infrastructure. Without granular monitoring systems, factories are unable to track energy consumption by department, machine cluster or production line.
Industry experts at the event stressed that “what is not measured cannot be managed,” noting that the lack of data-driven oversight prevents effective decision-making and masks inefficiencies that accumulate over time.
The issue extends beyond electricity. According to the project’s National Coordinator, Jacob Oladipo, water management practices across industries are equally problematic. Many facilities extract groundwater through boreholes without monitoring daily usage volumes or recycling process water.
He explained that water reuse and closed-loop systems could significantly reduce operational costs while advancing sustainability targets.
Sectoral differences and regional challenges
The Cleaner Production Assessment revealed sector-specific inefficiencies.
Thermal losses were particularly high in the basic metals and petrochemical industries, while idle machinery and poor operational planning drove avoidable losses in textile and leather factories.
Geographical disparities were also evident.
In Kano and Anambra, grid unreliability compounded inefficiencies, forcing manufacturers to rely heavily on diesel generators — thereby amplifying fuel waste and carbon emissions.
Despite these challenges, the food and beverage sector recorded measurable gains.
A Lagos-based plant reduced compressed air leakages by 20 per cent after implementing corrective measures identified during the audit.
Overall, the report estimates that if integrated industrial energy efficiency strategies are adopted nationwide, factories could achieve energy reductions of 20 to 25 per cent — translating to approximately 500 megawatt-hours of annual savings per plant.
ISO standards as a pathway to reform
To address the structural gaps, MAN is urging manufacturers to adopt ISO 50001 for energy management and ISO 14001 for environmental and resource efficiency systems.
Speaking at the workshop, MAN Director-General Segun Ajayi-Kadir — represented by National Technical Coordinator Dr Oluwasegun Osidipe — described the initiative as a pivotal moment for Nigeria’s industrial transformation.
He said institutionalising energy management systems would not only cut production costs but also strengthen competitiveness in export markets increasingly driven by sustainability metrics.
Energy efficiency, stakeholders emphasised, is not solely an environmental agenda but a financial strategy. Lower fuel consumption reduces overheads, enhances margins and strengthens resilience in volatile energy markets.
Financial leakage hiding in plain sight
Industry executives acknowledged that inefficiencies often go unnoticed until subjected to structured audits. Duro Kuteyi, Chief Executive Officer of Spectra Industries Ltd, described the initiative as an eye-opener for manufacturers.
According to him, energy waste represents hidden financial leakage that erodes profitability.
He noted that waste heat recovery from generators and commercialisation of by-products could transform cost centres into revenue streams.
The consensus among experts was clear: industries lose 15% energy to weak maintenance – MAN, but that loss is reversible with deliberate policy, investment in monitoring systems and executive-level commitment.
Management buy-in critical
Adejumo stressed that closing the efficiency gap requires top management engagement. Without leadership commitment, facility managers lack the authority and budget to implement corrective measures.
He also warned that inefficiencies translate directly into higher carbon emissions, undermining Nigeria’s environmental commitments and exposing exporters to potential carbon border taxes in international markets.
As Nigeria grapples with high energy costs and persistent power supply instability, the call for structured energy management is gaining urgency.
For manufacturers already operating on thin margins, plugging maintenance-driven losses may offer one of the fastest pathways to cost relief and improved competitiveness.
The findings underscore a clear message: efficiency is no longer optional. It is a strategic imperative for industrial survival in a rapidly evolving global economy.
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