Olufemi Adeyemi

Nigerian Manufacturers Could Save Up to 25% in Energy Costs Through Efficiency Measures, MAN Study Reveals

Maintenance lapses and inefficient energy practices are causing significant waste across Nigerian factories, according to findings by the Manufacturers Association of Nigeria (MAN). The association reported that such lapses account for between 10 and 15 per cent of energy losses, while most industrial facilities lack sub-metering systems needed to track and manage consumption effectively.

The findings were presented at the National Stakeholders’ Sensitisation Workshop on ISO 50001 and 14001 standards in Lagos on Tuesday, following a Cleaner Production Assessment (CPA) conducted across 42 industries in four geopolitical zones. The study, carried out under the GEF-UNIDO Industrial Energy Efficiency (IEE) and Resource Efficiency Cleaner Production (RECP) Project, examined sectors including food and beverages, basic metals, wood and wood products, textiles and leather, and petrochemicals.

Presenting the technical findings, IEE and RECP National Expert Obafemi Adejumo said the study revealed a wide gap between current industrial practices and global best standards. “What I have noticed is that there is a big gap between where we should be and where we are at the moment. Not all parts of the industry are doing well with energy efficiency. Some industries are already doing well, but a lot of other industries have not really plugged into it,” he explained.

The CPA identified compressed air systems as a major source of electricity waste, accounting for about 25 per cent of losses due to leaks and improper use. In some plants, optimising these systems enabled operators to shut down one compressor entirely. Steam systems accounted for 30 per cent of losses, while lighting contributed 18 per cent. The assessment also highlighted significant thermal losses from poor insulation and flue gases in boilers and furnaces, inefficient motor systems running at partial loads, and the absence of Variable Speed Drives.

The report noted that most facilities lack sub-metering, making energy management difficult. “Data gaps are a serious issue. Most facilities lack sub-metering, making it difficult to manage what isn’t measured,” the assessment stressed.

Idle equipment in textile and leather factories, coupled with a weak maintenance culture, contributed to avoidable energy losses of up to 15 per cent. Grid unreliability in states like Kano and Anambra further amplified losses, while thermal inefficiencies were particularly pronounced in the basic metal and petrochemical sectors.

Despite these challenges, some successes were recorded. In the food and beverage sector, a Lagos-based plant reduced compressed air leaks by 20 per cent following system optimisation. The CPA estimated that, with integrated industrial energy-efficiency measures, industries could achieve 20 to 25 per cent energy reduction—equivalent to about 500 megawatt-hours of savings per plant annually.

The association urged manufacturers to adopt ISO 50001 and ISO 14001 standards to institutionalise energy management and cleaner production. Jacob Oladipo, National Project Coordinator for the GEF-UNIDO IEE/RECP Project, explained that ISO 50001 focuses on energy efficiency, while ISO 14001 addresses resource efficiency and cleaner production.

The study also exposed poor water management practices. “We discovered that industries extract their water from boreholes and attach no importance to its usage. They use fresh water and discard it without knowing the volume used per day. If you are producing and you don’t know the volume of water you are using, how will you know the volume of water that you are wasting?” Oladipo said. He added that recycling water reduces overall consumption and enhances resource efficiency. “One of the cardinal principles of resource efficiency is that you produce with less waste. If you recycle your water, it reduces the amount of water you use at the end of the day because water is not going out into the drain,” he noted.

Adejumo emphasised that awareness and commitment from top management are critical to bridging the energy-efficiency gap. “If the top management doesn’t buy into it, the ordinary facility manager will not be able to do it,” he said. He also highlighted the broader benefits of efficiency: “If you can reduce energy consumption, then your cost of production will be reduced. When you save energy costs in your facility, you boost the sustainability of your organisation and make it competitive.”

Inefficiencies, he warned, also increase carbon emissions. “If you burn more fuel because of inefficiencies, then you have more emissions into the atmosphere. We must work on that on a national scale,” Adejumo added.

IEE & RECP National Expert, Obafemi Adejumo, presents findings to stakeholders at the Manufacturers Association of Nigeria's Sensitisation Workshop on ISO 50001 and 14001 standards in Lagos on Tuesday. Photo: MAN
Duro Kuteyi, Chief Executive Officer of Spectra Industries Ltd, praised the initiative for exposing hidden financial leakages in factories. “The IEE and RECP initiative is an innovative system that shows industrialists where they are losing money, and now they can prevent it,” he said. He encouraged factories to recover waste heat from generators and commercialise waste streams. “Even in the use of a generator, the heat coming from it can be converted to do other things in the factory. From the waste generated, we had already put energy into that waste, so it should not be trashed. The waste should be commercialised to compensate for part of the energy used,” he explained.

Kuteyi urged industrial leaders to personally undergo ISO training to understand and implement energy management practices effectively. “It is better for the industrialist himself to understand this so that he can pass it down. Everybody stands to benefit if he wants to,” he said.

In his welcome address, MAN Director-General Segun Ajayi-Kadir, represented by National Technical Coordinator Dr Oluwasegun Osidipe, described the project as a defining moment for the sector. “The implementation of the GEF-UNIDO Industrial Energy Efficiency, Resource Efficiency and Cleaner Production Project marks a defining moment in our collective journey towards sustainability,” he said.

Ajayi-Kadir stressed that manufacturers must champion sustainable practices to enhance competitiveness and resilience. “As we embrace the principles of energy efficiency, we will not only be reducing our carbon footprint but also saving on energy costs. In return, the efficiency, competitiveness, and resilience of operations will be enhanced to meet the increasing demand of our global marketplace,” he said. He also called on policymakers to create an enabling environment to support energy management systems and cleaner production, noting that optimising resource use and investing in energy-efficient technologies can safeguard the environment and foster sustained economic growth.