Decarbonisation emerging as profit driver for manufacturers, says expert
A chemical engineer and circular-economy advocate, Olanlokun Deborah, has said decarbonisation is fast shifting from an environmental obligation to a major profit driver for Nigerian manufacturers. She noted that the
A chemical engineer and circular-economy advocate, Olanlokun Deborah, has said decarbonisation is fast shifting from an environmental obligation to a major profit driver for Nigerian manufacturers.
She noted that the transition is creating new opportunities for companies to cut operating costs, improve efficiency, and strengthen long-term competitiveness.
Deborah explained that beyond environmental benefits, decarbonisation is opening pathways for innovation and helping manufacturers gain access to global markets that increasingly demand greener and more sustainable supply chains.
Speaking on the evolving industrial landscape, Deborah explained that manufacturers adopting low-carbon strategies are not only reducing emissions but also strengthening competitiveness and long-term resilience.
According to data from the University of Cambridge Institute for Sustainability Leadership, Africa emitted about 5 gigatonnes of carbon dioxide equivalent (GtCO₂e) in 2022, accounting for 9.3 per cent of global emissions.
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The report shows that Nigeria, South Africa, Egypt, Algeria, and Ethiopia together account for more than half of the continent’s total emissions.
Read Also: Climate Change: Decarbonisation strategy
Experts estimate that Africa will require about $2.5 trillion by 2030 to meet its decarbonisation targets, with Nigeria expected to bear a significant share. Under its Nationally Determined Contribution (NDC), the country aims to cut emissions by 20 per cent relative to business-as-usual levels by 2030, though the industrial sector’s contribution remains limited.
To accelerate progress, the Federal Government has introduced initiatives such as the National Industrial Decarbonisation Programme and the Energy Transition Plan, providing frameworks for manufacturers to reduce emissions, adopt renewable energy, and access carbon markets and green finance.
In the petroleum sector, the Nigerian Upstream Petroleum Regulatory Commission has rolled out a decarbonisation template requiring companies to deploy low-carbon technologies, improve energy efficiency, and integrate renewable energy into operations.
“Decarbonisation for Nigerian manufacturers involves shifting to renewable energy, improving energy efficiency, using low-carbon fuels like green hydrogen, adopting circular economy practices, and exploring carbon capture,” Deborah said.
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She noted that beyond environmental benefits, the transition can lower energy costs, reduce operational risks, enhance brand value, create jobs, and position companies competitively in a rapidly changing global market.
Deborah projected that Nigeria could generate over N1 trillion annually by measuring, verifying, and monetising carbon savings from clean energy projects, effectively turning emissions reductions into bankable assets.
“The global focus on environmental, social and governance (ESG) standards and low-carbon operations is unlocking green finance, enabling manufacturers to invest in renewable energy, upgrade machinery, and adopt cleaner fuels while reducing dependence on volatile fossil fuel markets,” she added.
She further explained that sustainable practices are driving innovation across waste management, renewable energy, and product development, creating new markets for green products and supporting local production.
Providing practical pathways, Deborah advised manufacturers to adopt fuel-flexible engines capable of running on biofuels, hydrogen, or ammonia, integrate solar and other renewable sources, and embed circular economy principles to minimise waste and maximise resource reuse.
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“Smaller firms can achieve quick savings through targeted energy-efficiency measures such as steam-trap management and thermal insulation, while larger companies can explore electrification and carbon capture to reduce unavoidable emissions,” she said.
She stressed that early adoption would help manufacturers avoid regulatory pressure and stranded assets while positioning them for growth in the emerging global green economy.
With expanding access to government frameworks, carbon markets, and green finance, analysts say decarbonisation is increasingly becoming a strategic profit engine rather than merely an environmental responsibility, offering long-term resilience for Nigeria’s sector.
