Nigerian Manufacturers Turn to Adaptive Automation as Energy Costs Soar

Fadekemi Ajakaiye

Rising energy costs and persistent supply chain disruptions are pushing Nigerian manufacturers to embrace a new generation of software-driven industrial automation as they seek to improve efficiency, cut operating costs and build more resilient production systems.

Manufacturers spent ₦1.35tn on alternative energy in 2025, a 21 per cent increase from the previous year, according to the Manufacturers Association of Nigeria. Energy now accounts for between 35 and 40 per cent of production costs for many factories, while the World Bank estimates that unreliable electricity costs Nigeria about $29bn annually, equivalent to nearly 7 per cent of gross domestic product.

The mounting cost pressures are accelerating interest in software-defined automation, a technology that enables industrial plants to reconfigure production systems through software rather than relying on fixed hardware. Industry executives say the approach allows manufacturers to respond more quickly to equipment failures, changing production requirements and supply chain disruptions without replacing entire control systems.

Unlike conventional automation systems, where equipment is designed to perform fixed tasks, software-defined automation allows operators to update or reprogramme industrial processes digitally, reducing downtime and extending the lifespan of existing infrastructure.

Schneider Electric, one of the companies promoting the technology across Africa, said the shift could help manufacturers reduce operational costs by simplifying maintenance and reducing dependence on specialised replacement parts.

The company said operators using its Foxboro industrial control systems have reduced spare-parts inventories by as much as 70 per cent, while avoiding lengthy production interruptions by replacing hardware upgrades with software-based configuration changes.

Speaking on the trend, the Country Sales Director for Schneider Electric, Sub-Saharan Africa, Elijah Daniel, said manufacturers across Nigeria and the region should begin viewing automation as an evolving business capability rather than a one-time capital investment.

“The operators who will lead the next decade are the ones building plants that can adapt, not just the ones building plants to spec,” Daniel said.

He argued that adaptive automation enables manufacturers to respond more quickly to unexpected operational disruptions, including equipment failures, changing market demand and supply chain constraints.

The growing interest comes as manufacturers contend with multiple challenges beyond electricity shortages. Delays in importing industrial equipment, foreign exchange volatility and rising maintenance costs have increased pressure on companies to maximise existing production assets instead of investing in entirely new facilities.

Industry analysts say software-based automation could help reduce dependence on imported spare parts by allowing multiple industrial functions to be managed through programmable systems rather than dedicated hardware components.

The trend is also gaining momentum across Sub-Saharan Africa, where industrial operators are investing in technologies that improve operational resilience. The regional industrial process automation market is projected to expand from about $817m in 2025 to more than $1.5bn by 2030, driven largely by demand from the oil and gas, manufacturing and pharmaceutical sectors.

For Nigeria, where more than 70 per cent of manufacturers rely on self-generated electricity to sustain operations, greater automation flexibility could help companies minimise costly production interruptions while improving efficiency in an increasingly challenging operating environment.

Although adaptive automation cannot resolve Nigeria’s chronic electricity shortages, industry executives say it can reduce some of the operational risks facing manufacturers by enabling factories to adjust more quickly to changing business conditions.