Manufacturers Call for Natural Gas Shift to Maximise Production

March 6, 2026

Manufacturers in southeast Nigeria have urged a shift from diesel to natural gas to lower soaring energy costs and boost industrial growth, warning that unreliable and expensive power supply threatens the survival of factories.

Adaora Chukwudozie, chair of the South-East region of the Manufacturers Association of Nigeria, said the transition to gas-based energy could stabilise power supply for industries and strengthen the competitiveness of locally manufactured goods.

She spoke in Awka, the capital of Anambra State, during an energy stakeholders’ forum organised by the state government and Shell Nigeria Gas under the theme “Bridging the Energy Gap for Manufacturers.”

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“For many manufacturers, the cost and reliability of power determine whether factories expand, stagnate or shut down,” Chukwudozie said.

She said gas infrastructure within industrial clusters could help reduce production costs and stabilise energy supply in key manufacturing hubs such as Nnewi and Onitsha.

Chukwudozie added that collaboration between energy providers, government regulators and industry stakeholders would be needed to unlock the benefits of gas-driven industrialisation, including transparent pricing and supportive policies to encourage small and medium-sized manufacturers to adopt the transition.

Officials at the forum said reliable gas infrastructure could help transform Anambra into a model for sustainable industrial energy in Nigeria and across West Africa.

The state government said it was working to harness local gas reserves to support industrialisation and provide more reliable electricity.

Julius Chukwuemeka, Anambra’s commissioner for power and water resources, said the government was exploring piped natural gas as a cheaper and more stable energy source for businesses, particularly during national grid disruptions.

“The state has abundant gas reserves around the Omambala region and the Ogbaru axis, and we are working to harness these resources for industrial growth,” he said.

He added that the government had earmarked more than 5,000 hectares of land for a proposed industrial city but noted that stable power supply would be essential for the project to succeed.

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Raph Gbobo, general manager of Shell Nigeria Gas, said the company was committed to working with the state to develop cost-effective gas solutions that could help industries reduce reliance on diesel.

Industry experts at the forum also highlighted challenges facing industrialisation in the state, including energy shortages, poor infrastructure, limited access to long-term financing and regulatory bottlenecks.

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Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa

Prosper Okoye

Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa

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