Nigerian manufacturers urged to deploy AI to cut costs
Industry leaders met in Lagos to discuss technology and financing for energy efficiency and competitiveness.
Manufacturers Association of Nigeria (MAN) president Ifeanyi Okoye urged companies to use Artificial Intelligence (AI) and energy-efficient technologies to combat rising production expenses. The call came during a 2026 summit on energy security and efficiency in Lagos, a meeting organised by MPDCL, GIZ, and NESP. Leaders discussed technology, sustainable energy, and financing to address manufacturers' energy challenges.
Okoye stated that manufacturers spend approximately 40 per cent of their profits on energy issues, citing high electricity tariffs and unreliable grid supply. MAN Director-General Segun Ajayi-Kadir added that AI and smart systems can optimise energy use and lower operating costs. John Aluya, Chairman of MPDCL, noted that high self-generation costs reduce profit margins.
The summit aimed to facilitate access to climate funds and green investments for manufacturers transitioning to efficient energy systems. Ulf Brackmann, CEO of IKAPITAL Family Office & Friends, suggested AI could boost productivity and create jobs, but only where factories have dependable electricity and digital foundations. Industrial goods companies on the Nigerian Exchange Limited spent N820.7 billion on energy in the first nine months of 2026.
Why it mattersNigerian manufacturers are facing significant financial pressure due to high energy costs, impacting their profits and competitiveness.