Anambra Manufacturers Push Gas Shift Over High Diesel Cost

Manufacturers in Anambra State have highlighted the severe impact of rising diesel and fuel costs on their operational viability, calling for a strategic shift to gas-based energy to ensure industrial survival and growth.

Ada Chukwudozie, Chairman for the Manufacturers Association of Nigeria (MAN) covering the Southeast zone, stated that exorbitant and unreliable power costs are a primary threat to industrial competitiveness. She noted that for many factories, these expenses directly determine expansion, stagnation, or closure.

Chukwudozie posited that transitioning from diesel dependence to natural gas is a critical strategic pathway for sustainable industrial development. She emphasised that Anambra’s established industrial clusters in Nnewi, Onitsha, Awka, and Nkpor are uniquely positioned to benefit from such a transition.

The transition, however, requires coordinated effort. Chukwudozie stressed the need for deliberate collaboration between energy providers, government, regulators, and industry stakeholders. She cited initiatives by firms like Shell Energy as examples of how private sector players can catalyse this change.

Key enablers for manufacturers, particularly small and medium enterprises (SMEs), include the development of reliable gas infrastructure within clusters, transparent pricing structures, and supportive government policy incentives. According to Chukwudozie, affordable and consistent gas supply would lower production costs, stabilise energy access, and enhance the competitiveness of locally made goods.

If effectively implemented, a coordinated gas infrastructure programme could position Anambra as a flagship model for sustainable industrial energy in Nigeria and West Africa. The call underscores a pressing need to address Nigeria’s long-standing power deficit, which has forced industries to rely on expensive captive power solutions, eroding profit margins and hindering economic diversification. The path forward hinges on translating policy intent into tangible infrastructure and market mechanisms that de-risk the transition for the manufacturing sector.