The Manufacturers Association of Nigeria, South East branch, has raised fresh concerns over the growing number of factories shutting down in the region as a result of rising energy costs and limited access to funding.
The warning was issued by the Chairman of MAN for Anambra, Enugu and Ebonyi States, Lady Ada Chukwudozie, during a stakeholders’ industry conversation held in Awka, Anambra State, where key players in the manufacturing sector gathered to review ongoing challenges affecting production.
The meeting focused on issues around electricity supply, billing practices and the steady decline in industrial output across the South East.
Chukwudozie explained that many of the factories still operating in the region are struggling to function at even thirty percent of their installed capacity due to high electricity tariffs, expensive alternative energy sources and difficulty in securing credit facilities.
She noted that the situation in the sector has become so difficult that it prompted the engagement with stakeholders, stressing that manufacturing remains a major driver of jobs, growth and economic development in the region.
She warned that without urgent intervention, more companies may be forced to shut down, further worsening unemployment and weakening the region’s industrial base.
According to her, the sector cannot survive in an unstable operating environment, adding that consistency and predictability in power supply are essential for industrial growth.
She also called for reforms in the electricity sector that would ensure transparency in billing, accountability from service providers and clear standards on supply levels, including agreed hours of electricity delivery and compensation when expectations are not met.
Chukwudozie urged regulators to strengthen oversight of electricity distribution and prioritise improved power supply to industrial areas across the South East.
Participants at the meeting expressed concern that manufacturers are already battling rising production costs driven by unreliable electricity and the increasing cost of alternative energy.
They warned that if the situation continues, more companies may be forced to reduce operations or shut down entirely.
Former Chairman of the Nigerian Electricity Regulatory Commission, Dr Sam Amadi, who delivered the keynote address, called on South East governments to prioritise electricity supply to industrial clusters through targeted policies.
He also recommended pricing structures that would support manufacturers to expand production and sustain growth.
The stakeholders’ forum brought together industry leaders, regulators and manufacturers in a bid to explore workable solutions to the energy crisis affecting industrial productivity in the region.
