Energy expert and Vice President, Upstream, Women in Energy Network (WIEN), Engr. Ifeoma Ukabiala, has called on Nigerian businesses to adopt smarter energy management strategies, warning that the rising cost and unreliable supply of electricity are threatening business profitability and economic growth.
Ukabiala made the call while delivering her address as Special Guest of Honour at the Lagos Country Club Business Forum 3.0, where she urged business leaders to treat energy management as a critical business strategy rather than an operational afterthought.
Speaking on the challenges facing Nigerian businesses, she noted that frequent national grid collapses, increasing diesel costs and inadequate electricity supply have significantly raised production expenses, particularly for manufacturers and small businesses.
She cited figures indicating that Nigerian manufacturers spent approximately ₦1.35 trillion on alternative power sources in 2025, representing a 23 per cent increase from the previous year. She also noted that energy accounts for about 35 per cent of production costs in the manufacturing sector.
According to her, unreliable electricity supply costs Nigerian businesses billions of dollars annually in lost productivity, damaged equipment, operational downtime and reduced competitiveness.
Ukabiala explained that businesses must look beyond their electricity tariffs and calculate the actual cost of power consumed across the national grid, diesel generators and renewable energy sources.
She identified five key strategies for improving energy resilience: measuring energy consumption, reducing waste, diversifying power sources, negotiating effective energy contracts and strengthening corporate energy governance.
She encouraged businesses to embrace energy efficiency measures, including LED lighting, inverter air conditioners and energy-efficient industrial equipment, while exploring solar power, battery storage, natural gas and embedded power solutions.
On the country’s energy challenges, the upstream industry professional identified weaknesses across Nigeria’s gas-to-power value chain, including outstanding debts to power generation companies, pipeline constraints and distribution inefficiencies.
She stressed the need for stronger collaboration among upstream, midstream and downstream operators, government agencies, regulators and business organisations to improve domestic gas supply and electricity generation.
Ukabiala also highlighted opportunities emerging from the Electricity Act 2023 and the establishment of the Lagos State Electricity Regulatory Commission (LASERC), noting that the development of a decentralised electricity market could create opportunities for private-sector investment and more reliable power supply.
She particularly advocated embedded and cluster power solutions for industrial estates, explaining that businesses could achieve better energy costs by aggregating their electricity demand and entering into long-term supply agreements.
Addressing concerns about the cost of transitioning to renewable energy, she said businesses could explore energy-as-a-service arrangements, leasing, pay-as-you-go solutions and financing facilities to reduce the burden of upfront investment.
She further warned that environmental, social and governance (ESG) reporting was becoming increasingly important, urging businesses to begin documenting their energy consumption and emissions in preparation for emerging sustainability reporting requirements and demands from international customers and investors.
As part of her recommendations, Ukabiala proposed a 30-90-365-day energy action plan, urging businesses to establish their actual energy costs within 30 days, implement efficiency improvements within 90 days and develop an appropriate energy mix within 12 months.
She also called on policymakers to ensure a stable and transparent electricity market, expand embedded power infrastructure, introduce fair electricity tariffs and strengthen metering across the sector.
The energy expert concluded that businesses that deliberately manage their energy consumption, diversify their power sources and adopt effective energy governance would be better positioned to withstand Nigeria’s electricity challenges and remain competitive.
She urged business owners, policymakers and stakeholders across the energy value chain to work together, stressing that sustainable solutions to Nigeria’s power crisis would require collective action.