The Manufacturers Association of Nigeria has called on the Federal Government to urgently implement a 30 per cent Green Investment Tax Credit for industrial firms investing in renewable energy and hybrid power systems, as rising energy costs continue to undermine industrial productivity and push up production costs across the country.
​The appeal was voiced on Monday morning, October 19, 2026, by the Director-General of the association, Segun Ajayi-Kadir, during an executive industry briefing held at the organization’s headquarters in Ikeja, Lagos.
​Addressing business executives and industry leaders, Ajayi-Kadir explained that energy expenditures now account for well over 40 per cent of total manufacturing costs in the country.
The persistent unreliability of the public power grid has forced factory owners to rely heavily on expensive self-generation using diesel and compressed natural gas, exposing industrial operations to severe fuel price volatility and squeezing operating margins to unprecedented levels.
​Under the proposed framework, the 30 per cent tax credit would serve as a vital fiscal incentive, allowing manufacturing companies to offset the significant upfront capital required to deploy solar power, biomass generators, gas hybrid units, and industrial battery storage.
Ajayi-Kadir emphasized that such targeted tax relief would help businesses lower long-term operating overhead, maintain competitive pricing for consumers, and safeguard thousands of industrial jobs nationwide.
​In addition to the tax credit, the association urged federal policymakers to implement a broader suite of supportive measures, including standardised industrial gas pricing, dedicated power corridors with priority grid allocation for manufacturing hubs, and full import duty waivers on clean energy hardware such as solar panels, industrial inverters, and high-capacity storage units.
​The Manufacturers Association of Nigeria confirmed it will formally submit the policy draft to the Federal Ministry of Industry, Trade and Investment and the Federal Ministry of Finance ahead of the upcoming national fiscal policy review.
