Manufacturers charged to deploy AI, energy-efficient technologies to cut costs

The Manufacturers Association of Nigeria (MAN) has urged manufacturers to embrace Artificial Intelligence (AI), advanced technologies and energy-efficient solutions to tackle rising production costs, strengthen energy security and improve industrial competitiveness.

The call was made at the 2026 Manufacturers Energy Security and Energy Efficiency Summit in Lagos, where industry leaders and government representatives examined the role of technology, sustainable energy supply and structured financing in addressing the energy challenges confronting Nigerian manufacturers.

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The event was jointly organised by Manufacturers Power Development Company Ltd. (MPDCL), GIZ and the Nigerian Energy Support Programme (NESP).

President of MAN, Ifeanyi Okoye, said the industrial energy cost reduction and adoption programme would promote factory rooftop solar installations, battery energy storage systems, captive natural gas solutions, and smart energy management networks.

He said the programme was aimed at addressing the rising cost of energy, which had significantly affected manufacturing operations and competitiveness.

According to him, manufacturers spend about 40 per cent of their profits addressing energy challenges, while high electricity tariffs, unreliable grid supply, and dependence on fossil fuels continued to undermine industrial production.

“The summit is to facilitate access to long-term financing instruments, climate funds, green investments, and asset-financing mechanisms to support manufacturers’ transition to more efficient energy systems,” he said.

In his comment, Director-General of MAN, Segun Ajayi-Kadir, said the adoption of emerging technologies had become critical to improving production efficiency, reducing energy consumption and strengthening the resilience of manufacturing operations.

He noted that AI and smart manufacturing systems could help industries optimise energy use, minimise production losses, lower operating costs and improve product quality, particularly amid persistent electricity supply challenges.

Chairman, Board of Directors, MPDCL, John Aluya, noted that the high cost of self-generation had reduced manufacturers’ profit margins and weakened their competitiveness.

He stressed that reliable and affordable energy was critical to the survival of Nigerian industries, adding that the summit was meant to explore practical solutions, including solar photovoltaic systems, battery energy storage, captive gas power, energy efficiency, and carbon credit monetisation.

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In his keynote address, Ulf Brackmann, Chief Executive Officer of IKAPITAL Family Office & Friends, said AI could significantly boost industrial productivity and create new employment opportunities rather than displace workers, urging manufacturers to take advantage of the opportunities offered by technological innovation.

Brackmann however noted that AI could only cut costs and boost efficiency for manufacturers where factories have dependable electricity and sound digital foundations. He warned manufacturers against seeing AI as an instant solution to their production challenges. 

“AI is very often seen as a magic pill or sold as a magic pill to manufacturers as if it would solve all the problems. No, it doesn’t,” he stated.