By Constance Athekame, News Agency of Nigeria (NAN)
With a population surpassing 240 million, Nigeria’s rapid growth and economic development are driving a massive surge in the demand for reliable, affordable, and effective energy.
The country’s persistent electricity challenges continue to affect businesses across the country. Frequent power outages, high fuel costs, and dependence on generators increase operating expenses and reduce productivity.
As a result, many businesses are turning to renewable energy, particularly solar power, as a reliable and cost-effective alternative.
By most accounts, solar energy has emerged as one of the most practical renewable energy solutions in Nigeria due to the country’s abundant sunshine and growing demand for stable electricity.
Beyond providing power, solar energy is increasingly helping businesses improve productivity, reduce costs, and expand operations.
One of the most significant benefits of solar power for businesses is the reduction in energy expenses. Many Nigerian businesses spend substantial portion of their income on diesel and petrol generators because of unreliable grid electricity.
A 2025 study on Small and Medium Enterprises (SMEs) in Northern Nigeria found that businesses using solar energy achieved energy cost savings of between 20 and 30 per cent, while also reporting income growth of between 15 per cent and 25 per cent.
This directly aligns with reports of significant income growth and energy cost savings.
The study further revealed that solar adoption contributed to increased productivity and reduced operational costs.
By lowering expenditure on fuel and generator maintenance, businesses can redirect resources toward expansion, staff development, and improved services.
Nigeria’s adventure into solar energy cannot be recounted without mentioning Secure Energy Project, a key player in the industry.
Analysts say reliable electricity is essential for business operations. Frequent power interruptions can lead to production delays, equipment damage, and loss of customers.
That perfectly aligns with the findings from a landmark economic survey on the Impact of solar energy subscription on the market performance published in ScienceDirect.com.
The study analysed 700 MSMEs across Lagos, Kano, and Ondo states and detailed exactly how clean energy adoption transforms bottom line.
The study found out that businesses using solar energy recorded higher monthly incomes and lower electricity expenses.
It also highlighted reliability and affordability as major reasons businesses adopted solar power.
With dependable power supply, businesses can operate for longer hours, meet customer demands efficiently, and improve overall performance.
Recent research shows that renewable energy solutions such as solar power can strengthen SMEs’ resilience and competitiveness by providing reliable electricity, especially in rural and off-grid areas where access to the national grid is limited.
Solar-powered businesses are better positioned to remain operational during power outages, thereby maintaining customer confidence and increasing profitability.
The growth of the solar industry also creates employment opportunities across the renewable energy value chain. Jobs are generated in manufacturing, installation, maintenance, sales, and technical support services.
Nigeria’s renewable energy sector is attracting significant investments.
Through initiatives supported by development partners and the government, solar projects are expanding electricity access to millions of households and businesses.
For example, the World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES) programme aims to provide solar energy solutions to millions of households and micro-businesses across Nigeria.
As investment in solar infrastructure grows, more jobs and business opportunities are expected to emerge.
Businesses that adopt solar energy become less vulnerable to fluctuations in fuel prices and grid failures.
Rising diesel costs have made generator-dependent operations increasingly expensive, encouraging many enterprises to seek cleaner and more affordable alternatives.
By reducing energy-related uncertainties, solar power enables businesses to plan more effectively, increase productivity, and compete more successfully in local and international markets.
Speaking on how solar had improved their businesses; electricity consumers in Chika Community along the Airport Road in the FCT shared their experiences.
Mrs Blessing Okon, a petty trader residing in Chika, said that she started using solar power because of the epileptic power supply in her area.
Okon said that electricity was not stable and her business was suffering adding, that she was running at a loss.
“The power is not stable sometimes it comes for two or three hours in a day, at times it does not come at all.
“Since I started using solar power, my business has improved a lot and I always have cold drinks to sell to my customers, ‘’ she said.
Okon said that before migrating to solar energy, she was using a generator for her business, but fuel became so expensive that she could not make a profit.
Mrs Grace Emeje, also residing in Chika and selling drinks and water, said that unstable power supply made her turn to solar power for her business.
Emeje said that at night, the area was usually dark, but with solar power, it became bright, attracting customers from afar to the shop.
“Solar has helped improve my business compared to before where I have to close early because there is no power supply.
“Also my children usually come to the shop to do their homework since there is no electricity at home, ‘’ she said
Mrs Anita Ibeku, a Fashion designer in Chika, said she moved to solar power for her business to enable meet her customers’ demand.
“I decided to move to solar to meet my target and satisfy my customers’ demand,” she said.
Ibeku said that since she started using solar, her business had greatly improved, adding that she no longer had a problem with electricity shortages because her business needs a constant power supply.
More so, in Bwari , FCT , consumers said that solar was the best option for businesses to grow.
Mr Ugwu Chinedu, who sells drinks and water, said that solar was the best option for doing business as there was always constant electricity.
“I have tested it; the issue of fuel has put so many people into debt.
“Solar does not have that problem; it makes you enjoy constant power supply.
“In this shop, I do not have a generator and I have three fridges and all of them use solar and with that I am able to preserve my drinks.’’
Chinedu said that solar had improved his business 100 per cent as he always have cold drinks to sell to his customers.
“When we saw that the business was growing and could not meet up with the demand of customers, I decided to increase the capacity of our solar.’’
According to him, solar is expensive, but they are of different capacities depending on the kind of business you are doing.
For instance, a business requiring a refrigerator should opt for a higher capacity, whereas a business with no such need can select a smaller model.
“It all depends on the kind of business you are doing and this will determine what you will go for,’’ he said.
Also, Mr David Paul, a Frozen food and yoghurt vendor in Bwari, said that he decided to use solar for his business due to the epileptic power supply in his area.
He said that from January to March, there was no power supply in his area and he lost so much money; hence he moved to solar.
Paul said that since he started using solar for his business, it had improved tremendously.
“Solar is the best option for businesses and it is cost effective,’’ he said.
Nonetheless, stakeholders say Federal Government’s plan to ban the importation of solar panels could be counterproductive if rushed.
Experts and stakeholders in Nigeria’s energy sector advocate a gradual phase-out of solar panel imports rather than an outright ban.
Mr Joseph Ibrahim, Nigeria Campaign Director, Secure Energy Project, said discussions were growing on restricting imports to boost manufacturing.
“Let me be clear, we wholeheartedly support local manufacturing of solar panels.
“We want to see factories in our states, jobs for our youth, and a supply chain that begins and ends on our soil.”
Ibrahim, also a member of the Solar Power Nigeria Coalition, said the best path forward was not a sudden policy shift but a phased roadmap implemented carefully over three to five years.
“If we rush this, we risk making solar power too expensive for the millions, who currently rely on it for survival,” he said.
“We cannot allow our market to be flooded with substandard products that fail our consumers,” he said.
He emphasised the importance of quality assurance and regulatory enforcement across the sector.
Sharing similar sentiments, Mr Femi Asonibare, Team Lead, Environmental Sustainability and Green Economy, said renewable energy had emerged as a critical solution to Nigeria’s persistent electricity challenges and supply gaps nationwide.
He cited a report by the Global Initiative for Food Security and Ecosystem Preservation, stating many Nigerians remained unaware of the proposed solar import ban and its potential implications.
According to him, the report also indicates that many respondents prefer a phased ban scenario, supported by incentives for importing raw materials needed to sustain local manufacturing efforts.
“They advocated for phase ban with collaboration with some incentives for importing raw material.’’
Asonibare highlighted the need for coordinated policy measures to support industry transition.
“Affordability will be an issue, so we advocate that there should be a phase ban instead of an immediate one,” he said.
Mr Lucky Abing, Nigeria National Coordinator, GreenFaith Africa, said the country was at a critical moment in its energy transition, requiring careful policy decisions to avoid deepening existing access challenges.
Abing said discussions about banning solar panel imports raised concern, noting millions still lacked reliable energy access, describing the situation as both an infrastructural gap and a development crisis.
“But while we commend the government’s efforts and stakeholders, this implementation gap continues to slow progress,” he said.
Observers are of the opinion that solar power is no longer just an alternative source of electricity in Nigeria; it is becoming a catalyst for business growth and economic development.
It has also helped in reducing operating costs, improving productivity, supporting SMEs, creating jobs, and enhancing competitiveness, solar energy is helping businesses overcome one of Nigeria’s greatest development challenges: unreliable power supply.
Industry experts say as Nigeria continues its transition toward renewable energy, increased investment in solar technology, supportive government policies, and accessible financing will be critical to ensuring that more businesses benefit from clean, reliable, and sustainable energy solutions. (NANfeautures)
Edited by Chijioke Okoronkwo
***If used, please credit the writer and the News Agency of Nigeria.