African Democratic Congress (ADC) presidential candidate Atiku Abubakar has warned that Nigeria cannot achieve meaningful industrial growth while manufacturers spend about half of their operating costs on energy.
Atiku said the rising cost of diesel and other energy sources was placing severe pressure on Nigerian businesses and forcing manufacturers to spend more to keep their factories operating.
He made the remarks in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, while reacting to the proposed Vienna-listed bond arrangement by the administration of President Bola Tinubu.
Atiku said diesel prices had risen to about N2,000 per litre or more in some industrial areas, making energy one of the biggest expenses facing manufacturers.
Citing figures from the Manufacturers Association of Nigeria (MAN), he said energy-related expenses now account for more than half of manufacturers’ operating costs.
Atiku also said manufacturers spent about N1.34 trillion on alternative energy in 2025, while expenditure in the first half of 2026 had already approached the previous year’s figure.
He said manufacturers in Lagos, Kano, Aba and Nnewi were being forced to allocate a significant portion of their budgets to keeping their factories running, leaving fewer resources for workers’ salaries, raw materials, transportation, loan repayments and profits.
“No economy can industrialise under those conditions,” Atiku said.
“When manufacturers are faced with such high energy costs, they will have no choice but to increase the prices of their products, reduce production, lay off workers or even shut down.”
He said each of those outcomes would affect ordinary Nigerians through higher prices, fewer jobs and lower household incomes.
Atiku also questioned the Federal Government’s decision to seek additional financing through the proposed Vienna bond, arguing that the administration should explain how increased revenues and savings from fuel subsidy removal have been used before taking on additional debt.
“This is the central contradiction Nigerians are entitled to question. Government says revenues are up. It says subsidy removal has saved enormous sums. Oil prices are substantially above the benchmark used for the 2026 budget. Yet borrowing is accelerating, factories are suffocating under energy costs and ordinary Nigerians are still struggling to afford the basics,” he said.
The ADC candidate called on the Federal Government to disclose details of the proposed Vienna transaction, including its financial structure, borrowing cost, repayment terms and the extent of government exposure.
He also demanded greater clarity on government revenue, expenditure, borrowing and outstanding financial obligations.
Nigeria Cannot Industrialise as Manufacturers Spend Half of Costs on Energy – Atiku
