Energy commission unveils new policy to reduce electricity costs for industry players in Nigeria

The initiative, unveiled during a validation workshop in Abuja, is expected to significantly enhance Nigeria’s industrial energy performance and drive sustainable economic growth.

The policy, titled “Improving Nigeria’s Industrial Energy Performance and Resource Efficient Cleaner Production through Pragmatic Approaches and the Promotion of Innovation in Clean Technology Solutions,” was unveiled by the Director-General of the ECN, Dr. Mustapha Abdullahi.

He emphasized that the new regulations would enable industrial players to conserve energy, thereby reducing operational costs and improving overall efficiency.

Dr. Abdullahi stated, “We are unveiling the new regulations and also a policy for industrial players to be able to use electricity and conserve it safely. With that, we are sure that electricity costs will be reduced. There are two key things here to note; energy generation and energy efficiency. If you generate energy, no matter the volume of that energy, if you are having 20,000 megawatts, if you are not using that efficiently, then it will be wasted.” 

The policy is part of a broader effort to address Nigeria’s energy challenges, particularly in the industrial sector, where high electricity costs have long been a barrier to competitiveness and growth.

By promoting energy conservation and the adoption of clean technologies, the ECN aims to create a more sustainable and cost-effective energy ecosystem.

The ECN also launched a compendium of industrial energy efficiency policies, regulations, and standards, which serves as a consolidated resource for policymakers, industry stakeholders, and regulators.

According to Dr. Abdullahi, the compendium will guide decision-makers in establishing robust policy frameworks for the adoption of Industrial Energy Management Systems (EnMS) across the country.

He described the compendium as a “living document” that will be updated regularly to reflect emerging policies and technological advancements.

He said that the Compendium was not exhaustive and would therefore continue to exist as a living document, as it will need to be updated as new policies emerge in the future.

Dr. Abdullahi stressed the importance of collaboration among key stakeholders, including Ministries, Departments, and Agencies (MDAs), non-governmental organizations (NGOs), and the private sector, to ensure the successful implementation of the policy. He noted that an inclusive approach is critical to achieving synergy, coordination, and consistency in promoting energy efficiency and conservation best practices.

“Appropriate policy and legislative frameworks are essential for promoting national energy efficiency and conservation best practices in any sector of the economy,” he added.

The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ayayi-Kadiri, commended the ECN for the initiative, describing it as a critical step toward driving sustainable economic growth and environmental protection. Represented by Michael Olufemitan, MAN’s Liaison Officer, Ayayi-Kadiri highlighted the potential of the policy to unlock new opportunities for job creation, economic diversification, and environmental sustainability.

“Our nation’s industrial sector holds significant potential to not only enhance productivity, but also reduce environmental impact through the adoption of clean technologies and sustainable practices. By focusing on resource efficiency and innovation, we can unlock new opportunities for job creation, economic diversification, and environmental sustainability,” he said.

The new policy is expected to yield significant economic and environmental benefits for Nigeria.

The new policy is expected to yield significant economic and environmental benefits for Nigeria.

The policy also aligns with Nigeria’s broader energy transition goals, including the push for renewable energy adoption and the reduction of reliance on fossil fuels.