Minister urges manufacturers to embrace smart energy for global competitiveness

Charles Okonji

In trying to mitigate escalating energy challenges and prices ravaging the manufacturing sector of the Nigerian economy, the Minister of Innovation, Science and Technology, Dr Kingsley Udeh, encouraged the manufacturers to consider a paradigm shift to smart energy solutions and sustainable manufacturing practices.

Udeh warned that failure to align with emerging global standards could negatively impact the country’s exports to the international markets.

He gave this advise on Wednesday in Lagos at the Manufacturers Energy Security and Efficiency Summit, themed, “Innovative Energy for Cost-Effective Smart Manufacturing with Structured Financing.”

The Minister noted that the global manufacturing landscape had moved beyond Industry 4.0 to Industry 5.0, making smart manufacturing increasingly dependent on cheaper, cleaner and more efficient energy rather than low-cost labour alone.

He pointed out that manufacturers must adopt emerging technologies and energy-efficient practices to remain competitive in the evolving global market.

In his own words, “The global manufacturing landscape has shifted permanently from Industry 4.0 to Industry 5.0. Smart manufacturing is no longer just about cheaper labour; it is about cheaper, cleaner and smarter energy.

“If Nigerian manufacturing does not embrace this trend, we will not remain competitive. Energy is the Ministry’s message for today. Nigeria cannot achieve energy security by simply purchasing energy solutions. We must build those solutions ourselves.”

Udeh hinted that research commercialisation, the development of an innovation ecosystem and the establishment of energy efficiency networks were key priorities under the ministry’s three-point agenda.

He noted that the ministry was redirecting research institutes from conventional research activities towards market-driven innovations that could be deployed on factory floors.

He stated that the ministry was promoting the adoption of industrial Internet of Things (IoT) and Artificial Intelligence (AI) technologies to improve energy monitoring and help manufacturers identify sources of energy waste in real time.

He disclosed plans to establish an Energy Efficiency Network in collaboration with the Manufacturers Association of Nigeria (MAN), powered by the National Centre for Technology Management, to provide relevant data for industrial energy management.

He stressed that the ministry was working with the Standards Organisation of Nigeria (SON) to introduce a green manufacturing certification scheme that would give energy-efficient manufacturers a competitive advantage and improve their access to carbon credits.

Commenting on financing, he stated that the ministry was collaborating with the Ministry of Finance and its national partners to establish a green innovation fund that would provide concessional financing for manufacturers adopting locally developed energy technologies.

According to him, “Sustainability without financing is a slogan. We are working with the Ministry of Finance and its national partners to create a green innovation fund that will provide concessional financing for manufacturers who adopt locally innovated energy technologies.”

He cautioned that emerging green trade barriers, particularly in Europe, could increase the cost of accessing international markets for products manufactured with carbon-intensive energy.

“Europe will increasingly impose costs on products manufactured using carbon-intensive energy. If we do not transition to sustainable manufacturing, our exports risk being locked out of international markets.

“This is why embracing the global trend is not romanticism; it is a matter of business survival,” he averred.

He assured manufacturers that the ministry remained open to partnerships that would accelerate technology transfer and sustainable industrial development.

In his speech, the Director-General of MAN, Segun Ajayi-Kadir, noted that the traditional model of industrial operations, which relies heavily on expensive, carbon-intensive diesel generators and passive consumption of grid electricity, was no longer sustainable.

Ajayi-Kadir stressed that Nigerian factories must become smarter, leaner and more technologically advanced to compete locally, within the African Continental Free Trade Area (AfCFTA) and in the global market.

“To remain competitive locally, regionally under AfCFTA, and globally, our factories must become smarter, leaner and more technologically advanced.

“Today, we shift our lenses entirely to smart technology, Artificial Intelligence integration and cutting-edge energy innovations. We set our gaze on access to structured financing that will enable new energy projects and capacitate expansions as part of the growth process to scale production and meet customers’ demand.

“Discussions at the summit examined how AI-powered energy management systems could monitor, predict and optimise factory electricity consumption in real time, thereby eliminating waste across production processes.

“Participants also explored advances in hybrid solar-storage systems, green hydrogen applications and high-efficiency industrial machinery capable of reducing energy consumption per unit of output.

“Energy efficiency extended beyond the adoption of new equipment to include organisational culture, accountability and employee participation.

“MAN, MPDCL and its partners at the German Agency for International Cooperation’s Nigerian Energy Support Programme (GIZ-NESP) had prioritised the expansion of Energy Efficiency Networks (EENs).

“The networks had demonstrated that improved energy management practices, regular energy audits and continuous employee training could deliver immediate energy savings at little or no cost.

“The summit also examined regulatory changes in the electricity sector, including state-level electricity market reforms, net-metering policies and opportunities for manufacturers to generate additional revenue from carbon credits arising from their clean energy investments. Discussions further highlighted the importance of Environmental, Social and Governance (ESG) compliance in improving manufacturers’ access to financing.” Ajayi-Kadir stressed.

On her part, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, said increasing energy supply alone would not address the challenges confronting manufacturers without corresponding improvements in energy efficiency.

She noted that manufacturers must be encouraged to adopt energy-efficient technologies and practices capable of reducing operating costs, improving productivity and strengthening competitiveness.

Eyesan said increased investment in gas production and processing, improved compliance with domestic gas delivery obligations and stronger infrastructure reliability are essential to ensuring a dependable energy supply to industries.

She also called for expanded gas utilisation in manufacturing and greater promotion of energy efficiency across industrial operations.

“The success of upstream petroleum regulation should not be measured solely by the volume of crude oil produced or gas obligations met, but also by the extent to which the country’s resources translate into a reliable domestic energy supply, competitive industries, employment opportunities and national prosperity.

“Nigeria has the resources, the market and the industrial potential to become a leading manufacturing economy in Africa. What is required is sustained investment, dependable infrastructure, regulatory certainty and stronger collaboration among stakeholders,” Eyesan stressed.

She noted that the energy value chain, from the wellhead to industrialisation, must function as a continuous chain of value creation, linking investment to production, processing and delivery, and ultimately ensuring reliable energy for competitive manufacturing.

Eyesan said, “The Nigerian upstream petroleum sector has a critical role to play in making this vision a reality.”