For many Nigerian businesses, clean energy is no longer just an environmental choice, it is becoming a survival strategy as soaring diesel prices, unreliable grid power and rising energy bills threaten profitability.
A new global survey of business executives across 18 countries shows strong support for clean electrification, with Nigerian business leaders ranking energy security and economic growth among its biggest benefits.
The survey, commissioned by the We Mean Business Coalition, E3G, and the Global Renewables Alliance, found that 90 per cent of Nigerian executives believe clean electrification would boost economic growth.
The findings come at a time of rising geopolitical tensions and volatility in global energy markets. More than two-thirds of Nigerian respondents said global instability is likely to push domestic energy prices higher, reinforcing the need for greater investment in clean power and modern electricity infrastructure.
Across all countries surveyed, 91 per cent of executives said electrification would improve energy security.
Power Crisis Continues to Weigh on Businesses
Despite growing confidence in the benefits of clean electrification, unreliable electricity remains one of the biggest challenges facing Nigerian businesses.
According to the World Bank, about 86.6 million Nigerians still lack access to reliable electricity, giving the country the world’s largest electricity access gap.
For manufacturers, the consequences are severe.
Anibe Achimugu, Managing Director and Chief Executive Officer of Arewa Cotton and Allied Products Limited, said persistent grid failures, unstable voltage, unplanned outages, and rising tariffs are threatening industrial productivity.
”Electricity has become one of the biggest threats to industrial survival in Nigeria,” he said.
According to Achimugu, unreliable power regularly disrupts production schedules, damages machinery, and makes it difficult for businesses to meet delivery deadlines. In the cotton, textile, and garment industry, many factories are operating below capacity, while some have shut down because of the high cost of generating their own electricity.
”Reliable electricity is no longer merely an operational issue; it is a strategic requirement for industrialisation, employment generation, and economic competitiveness,” he said.
The financial burden is equally significant. Achimugu noted that alternative power sources account for between 25 and 40 per cent of production costs for many manufacturers, with companies heavily dependent on diesel spending even more.
These challenges help explain why Nigerian executives expressed such strong support for electrification in the survey. Businesses are increasingly seeking reliable, affordable, and predictable power supplies that reduce exposure to fuel price volatility.
Manufacturers, Achimugu said, are exploring clean power solutions, including solar hybrid systems, captive power projects, embedded generation, and energy storage technologies, to improve energy reliability and reduce costs.
However, high upfront costs, limited access to affordable financing, policy uncertainty, and infrastructure gaps continue to slow adoption.
He called for stronger investment in power infrastructure, clean energy-powered industrial clusters, low-interest financing for energy projects, and the removal of import duties and VAT on equipment used to support productive activities.
Small Businesses Feel the Strain
The impact of unreliable electricity is also being felt by small business owners struggling to stay afloat.
Moyin-Ola, who runs a barbing salon in Kwamba, Niger State, said frequent power outages have increased operating costs and made it difficult to serve customers.
”It has been very hard for us. We need the government to do something about electricity,” he said.
Although he uses a low capacity solar system, he said it only provides lighting and cannot power fans or other equipment needed in the salon.
”The solar is just managing. It gives us light, but I can’t even put on fans for my customers,” he said.
He added that running a generator is becoming increasingly unsustainable. With petrol selling for about N1,400 per litre and a haircut costing N700, profit margins have been severely eroded.
”We spend so much on fuel that it is difficult to make a profit and still take care of our families,” he said.
At the time of the interview, he said Kwamba had been without electricity for four days, underscoring the daily challenges faced by many small businesses across the country.
Clean Electrification Gains Momentum
Energy experts say the shift toward clean electrification is increasingly being driven by economics rather than environmental concerns.
Ahmed Abubakar, Managing Director and Chief Executive Officer of DABOTECH Energy Solutions Nigeria Limited, said more businesses are adopting clean power technologies, including solar systems, battery storage, and hybrid energy solutions, as alternatives to unreliable grid supply and expensive diesel generators.
”Businesses want predictable energy costs, fewer interruptions, and less dependence on diesel generators,” he said.
According to Abubakar, rising diesel prices, increasing electricity tariffs, and persistent grid challenges are encouraging companies to seek cleaner and more efficient electricity solutions.
While the initial cost of many clean power technologies remains high, he said advances in technology and lower operating costs are making such investments increasingly attractive.
”The initial capital cost is still high, but many businesses recover value through reduced diesel consumption, lower maintenance, and improved uptime,” he said.
The survey findings support this trend. Across all countries surveyed, large majorities of business leaders said electrification would strengthen competitiveness, improve resilience, and reduce long-term energy costs.
However, significant barriers remain. These include limited access to affordable financing, foreign exchange pressures, import duties on equipment, poor-quality products, and shortages of skilled installers.
Looking ahead, Abubakar expects clean electricity solutions to play a much larger role in Nigeria’s commercial and industrial sectors.
”Grid power will remain important, but businesses will increasingly combine grid, solar, battery storage and, in some cases, generators. The future is hybrid,” he said.
Clean Power Delivers Savings
For some businesses, the benefits of cleaner electricity solutions are already translating into significant cost savings.
Bala Danjuma, a real estate manager, said the installation of a solar power system has been a game changer for his properties, helping to reduce operating costs and improve energy reliability.
Before switching to the system, the properties relied heavily on diesel generators because of poor electricity supply.
”We had a lot of challenges before the installation of the solar system. Because of the poor power supply, especially here in Jabi, we consumed between 5,000 and 6,000 litres of diesel every month,” he said.
Following the installation, diesel consumption dropped dramatically.
”With the installation of the solar system, we now use only about 1,000 litres of diesel in a month,” he said.
His experience reflects a growing trend among businesses investing in cleaner power solutions to reduce dependence on diesel generators and manage rising energy costs.
Reforms Yet to Ease Pressure
The Federal Government has introduced several reforms aimed at improving electricity supply and attracting investment into the power sector.
The Electricity Act 2023 has opened the sector to greater state participation in electricity generation, transmission, and distribution, while the National Integrated Electricity Policy and the Nigeria Integrated Resource Plan seek to expand generation capacity, improve grid reliability, and support clean power development and electrification.
The Rural Electrification Agency is also expanding off-grid and mini-grid projects in underserved communities.
Despite these efforts, businesses and energy experts say implementation has yet to keep pace with the scale of the challenge.
Transmission bottlenecks, weak distribution networks, and inadequate grid infrastructure continue to constrain economic activity and limit access to reliable electricity.
According to the survey, 61 per cent of executives want quicker planning approvals and improved grid connections, while more than half support the expansion and digitalisation of electricity networks.
Many believe a stronger electricity system would lower long-term energy costs by reducing dependence on generators and improving overall efficiency.
Growing Pressure for Action
Support for electrification is not limited to Nigeria. The survey found strong backing from business leaders in countries including Australia and Türkiye, with more than 90 per cent expecting to transition to electrified operations by 2035.
Bruce Douglas, Chief Executive Officer of the Global Renewables Alliance, said businesses are already moving ahead of government policy.
”Businesses know which way the wind is blowing. Their competitiveness now depends on how fast they can electrify with clean power. Governments must focus on building and modernising grids,” he said.
The findings point to a growing alignment between business priorities and the transition to cleaner electricity. However, they also highlight a widening gap between corporate ambition and the infrastructure needed to support it.
For business owners, the debate is less about emissions targets than about keeping the lights on, serving customers, and remaining profitable. As more companies pursue clean power and electrification solutions, pressure is mounting on Nigeria’s electricity sector to provide the reliable, affordable, and modern energy systems needed to sustain economic growth and business competitiveness.
Whether that momentum translates into widespread business transformation will depend largely on how quickly reforms, investment, and infrastructure improvements can close the country’s persistent power gap.
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