Cormart Nigeria Limited, a member of Tropical General Investments (TGI) Group, has pivoted to gas as its primary power source, reducing emissions while shielding its operations from rising diesel costs and grid instability.
The company now operates five gas engines with a combined capacity of 5 MW, 1.5 MW at its head office in Ilupeju and 3.5 at its production facility along KM 51 Lagos–Ibadan Expressway. This transition relegates the previously used 2.0 MW and 3.1 MW diesel engines at both locations to backup application.
The move responds to a familiar challenge for Nigerian manufacturers: high energy costs and growing pressure to meet environmental standards.
How Cormart achieved the transition and why it works
Cormart’s energy infrastructure Centers on gas engines supplied and maintained by Clarke Energy, complemented by grid connections and diesel engine that provide backup power. The gas-first model prioritises cleaner combustion and predictable fuel costs over diesel’s price volatility.
According to Cormart’s Technical Manager, Jawwad Alasa, the shift was driven by operational realities.
“Energy costs have risen across the country. Integrating gas with grid electricity has helped us keep production stable without compromising efficiency,” Alasa explained.
While gas engines require a higher upfront investment, they are more cost-effective in the long run. A recent minor overhaul completed at Clarke Energy’s Lagos facility in six weeks returned one engine to optimal performance after 40,000 hours of operation, highlighting the growing capacity for the in-country technical support.
Cormart has also deployed energy-efficiency measures such as steam-leak detection systems, regular energy audits, and upgraded lighting infrastructure, further reducing costs and emissions.
What this means for Nigerian manufacturing
Manufacturers in Nigeria continue to face an energy squeeze. Grid supply is unreliable, diesel is expensive, and pressure to reduce emissions is increasing, especially for companies serving international markets.
Self-generated power can account for up to 30 – 40% of production costs. Diesel, once the default backup, has become harder to sustain due to price volatility and foreign exchange exposure.
Gas offers a more stable alternative. It is locally available, less exposed to foreign-exchange risk and produces fewer emissions than diesel. With Nigeria’s extensive gas reserves, it also provides more reliable long-term option.
Yiannis Tsantilas, Managing Director for Clarke Energy in Sub-Saharan Africa, positioned Cormart’s approach within broader food security and economic development objectives. “While affordable food production is the core of a sustainable food value chain, it is equally important to adopt more efficient and reliable energy alternatives to lower production costs and increase the availability of affordable products for the Nigerian population,” he said.
The chemical and food raw materials distributor’s operations directly affect downstream manufacturers in sectors from beverages to pharmaceuticals, meaning its energy costs ripple through multiple supply chains.
The positive impact of Cormart’s energy transition
Cormart reports more stable production and lower energy costs since making the switch. The move has reduced downtime linked to diesel supply disruptions and improved overall operational efficiency.
Lower operating costs have improved the company’s competitive position in a market where imported alternatives often have a pricing edge. The emissions reduction supports relationship management with multinational clients, who are increasingly focused on sustainability.
However, scaling this model across Nigeria depends on access to gas infrastructure. While Lagos offers relatively strong pipeline access, manufacturers in other regions may face higher entry costs.
Industry observers note that Cormart’s gas-first, locally serviced, efficiency-driven approach provides a practical template for emissions reduction that doesn’t sacrifice output, addressing the core challenge for Nigerian manufacturers, balancing environmental objectives against immediate operational demands.
