Nigerian industries are losing between 10 and 15 percent of their total energy consumption due to weak maintenance practices and inefficient energy management systems, according to findings released by the Manufacturers Association of Nigeria (MAN).
The assessment, presented at a national stakeholders’ sensitisation workshop in Lagos, revealed widespread operational inefficiencies across factories, significantly increasing production costs in an already energy-constrained industrial environment.
The findings were based on a Cleaner Production Assessment conducted in 42 industrial facilities across four geopolitical zones under the Global Environment Facility–United Nations Industrial Development Organization Industrial Energy Efficiency and Resource Efficiency Cleaner Production Project.
The study covered key manufacturing sectors including food and beverages, textiles and leather, petrochemicals, wood processing, and basic metals.
Presenting the report, Industrial Energy Efficiency and Resource Efficiency Cleaner Production National Expert, Obafemi Adejumo, said the results exposed a significant gap between current industrial practices and internationally accepted efficiency standards.
More Read
According to him, while a few companies have adopted modern energy management systems, a large portion of Nigeria’s industrial base continues to operate below optimal efficiency levels.
“There is a big gap between where industries should be and where they currently are in terms of energy efficiency,” Adejumo noted, adding that many factories have yet to integrate structured monitoring and optimisation systems.
One of the most critical findings of the assessment was the absence of sub-metering systems in most facilities, limiting the ability of operators to accurately track electricity consumption across production units.
Energy experts say the lack of measurement tools prevents industries from identifying waste sources, ultimately leading to higher operational expenses.
Compressed air systems emerged as a major contributor to electricity losses, accounting for approximately 25 percent of wasted energy. Much of the loss was linked to air leaks, excessive pressure settings, and improper equipment usage. In some facilities, system optimisation enabled operators to shut down an entire compressor, generating substantial energy savings.
Steam systems represented the largest single source of inefficiency, responsible for roughly 30 percent of total losses due to poor insulation, heat escape, and inefficient boiler operations. Lighting systems contributed an additional 18 percent of avoidable energy waste.
The report also identified thermal losses from furnaces and boilers, inefficient electric motors operating under partial loads, and limited adoption of Variable Speed Drives as major challenges affecting industrial productivity.
Maintenance culture was highlighted as a recurring weakness, particularly in textile and leather factories where idle or poorly serviced equipment significantly increased electricity consumption.
Regional infrastructure challenges further compounded inefficiencies. The assessment found that unreliable grid power supply in industrial hubs such as Kano and Anambra forced manufacturers to rely heavily on alternative energy sources, increasing costs and energy losses.
More Read
Despite the challenges, the study recorded notable improvements in some facilities. A Lagos-based food and beverage plant successfully reduced compressed air leaks by 20 percent following targeted optimisation measures.
Overall, the assessment estimates that Nigerian industries could reduce energy consumption by between 20 and 25 percent if comprehensive efficiency measures were implemented. This could translate into energy savings of about 500 megawatt-hours annually per plant — equivalent to tens of thousands of dollars in reduced electricity costs depending on tariff levels.
MAN is therefore urging manufacturers to adopt international standards such as ISO 50001 for energy management and ISO 14001 for environmental and resource efficiency.
National Project Coordinator of the GEF-UNIDO Industrial Energy Efficiency project, Jacob Oladipo, said institutionalising such standards would help industries systematically monitor consumption, reduce waste, and improve competitiveness.
Industry analysts note that improving energy efficiency has become increasingly critical for Nigerian manufacturers facing rising energy prices, currency pressures, and growing global sustainability requirements.
The association stressed that strengthening maintenance systems and investing in energy monitoring technologies could deliver immediate cost savings while supporting long-term industrial sustainability and productivity growth.
