Manufacturers seek 30% green tax credit to cut energy cost

Manufacturers have called on the Federal Government to introduce a 30 per cent Green Investment Tax Credit for companies investing in renewable energy and hybrid power solutions, as rising energy costs continue to undermine industrial productivity and push up production costs. Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, in the association's 2025 Annual Report, said the proposed incentive would encourage manufacturers to transition to off-grid renewable energy and hybrid captive power systems, including solar and liquefied natural gas (LNG), to reduce their dependence on expensive and unstable energy sources. The proposal comes as manufacturers' annual expenditure on alternative energy rose by 20.72 per cent to N1.34 trillion in 2025, from N1.11 trillion in 2024, reflecting the growing burden of providing electricity for factory operations.

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