The presidential candidate of the African Democratic Congress (ADC), 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 businesses, forcing manufacturers to commit a significant portion of their resources to keeping their factories operational.
He spoke 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 President Bola Tinubu administration.
According to Atiku, diesel prices had risen to about N2,000 per litre or more in some industrial areas, making energy costs a major burden for 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 said manufacturers spent about N1.34 trillion on alternative energy in 2025, while expenditure in the first half of 2026 had already approached the same level.
He noted that manufacturers in Lagos, Kano, Aba and Nnewi were being forced to allocate a large share of their operating budgets to powering their factories, leaving fewer resources for workers’ salaries, raw materials, transportation, loan repayments and profit.
“No economy can industrialise under those conditions. 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.
“Whichever option they choose, ordinary Nigerians will bear the consequences through higher prices, fewer jobs and lower household incomes,” Atiku said.
The former vice president also questioned the Federal Government’s decision to seek additional financing through the proposed Vienna bond despite claims of increased government revenues.
He argued that the administration should first account for existing revenues and savings from the removal of fuel subsidy before seeking additional loans.
“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.
Atiku called on the Federal Government to disclose full details of the proposed Vienna transaction, including its financial structure, borrowing cost, repayment terms and the extent of government exposure.
He said Nigerians deserved greater transparency on how government revenue was generated and spent, as well as details of the country’s borrowing and financial obligations.
