The Energy Challenges And Way Forward For Msmes In Nigeria

Within the quest to discovering lasting options to the vitality challenges that befall Small, Medium and Micro Enterprises in Nigeria (MSMEs), one of many options to this menace is the adoption of fresh vitality sources, corresponding to photo voltaic and wind vitality, which serveas mitigation technique for all nations, together with the creating ones, the place Nigeria falls below, in accordance with world improvement index.

At the moment, we’re nonetheless confronted with challenges on how our Micro Small and Medium Enterprises (MSMES) ought to develop their companies. In accordance a latest survey performed by Local weather Transformation and Vitality Remediation Society (CLIMATTERS), there’s poor energy out there, which is unreliable, the payments are very excessive to pay, companies usually make little or no revenue, normally, companies fold up. The small companies rely on using fossil-powered turbines, which has confirmed to pollute the surroundings. Additionally, fueling and upkeep of the turbines are very costly. The turbines make a lot noise and the smoke impacts our well being dangerously.

In line with the report on poor energy provide by the Electrical energy Energy Distributor in Nigeria, the typical energy provide in Nigeria is 3,851MW. The height common energy provide was fastened in January 2017 and was round 4,425MW. Out of the farthest reaches of town of Lagos, you may even see the actual drawback of unstable energy provide in Nigeria.

Although there have been programmes and occasions for a worldwide marketing campaign and name for a clear and sustainable vitality technology and consumption. The worldwide response to local weather change was launched on the earth summit in Brazil within the yr 1992 with a number of conventions on local weather change and different summit that led to the 2015 Paris Local weather Convention, the place 195 nations, together with Nigeria adopted the primary ever authorized binding world local weather change settlement.However ever since then, nothing tangible has been put in place in Nigeria in the direction of assembly these pledges.

The entire vitality sector remains to be principally depending on the fossil gasoline which slows down the event of different types of vitality within the nation. No less than, 30 % of our populations rely on kerosene for his or her vitality wants, exposing this fraction of our inhabitants to kerosene’s well being hazards. The world well being group (WHO) estimates that respiratory kerosene fumes is the equal of smoking two packets of cigarettes a day and two- thirds of grownup females with lung most cancers in creating nations are non-smokers. Indoor air air pollution by kerosene fumes kills 1.5m folks per yr. Nigerians have spent over N17.5 trillion on the acquisition, upkeep and fuelling of turbines in the midst of 5 years, which is an expenditure of N3.5 trillion in a yr. This contains the sum spent by authorities companies, blue chip corporations, small and medium scale enterprises, banks, different company entities and merchants throughout the nation, which don’t have any different choice however to depend on turbines.

The ever worsening energy provide has led so many corporations to fold up in Nigeria and consequently growing the speed of unemployment and insecurities. Many manufacturing corporations in Nigeria have chosen to relocate to neighboring nations to scale back their expenditure on vitality. Not solely is the excessive value of procuring non-public vitality and a considerable enhance within the industrial tariff for electrical energy affecting Nigerian producers and Micro, Small and Medium Enterprises (MSMEs). In accordance a report, titled “Pushing Off-Grid Renewables for Micro, Small and Medium Enterprises (MSMEs) in Nigeria” revealed by CLIMATTERS IN 2018;a barber who spends N180,000for electrical energy invoice, generator fueling and upkeep, his energy bills in 3years will likely be doubled to N540,000.However in a type the place we’ve got photo voltaic panel to exchange this type of vitality, he can have solely to spend much less and no a lot upkeep is required. A cyber café that spends N366, 000 in per yr on energy expense will likely be spending N1, 098,000 in 3years on energy bills, too, however with a ‘Pay-as-you-go’ choice on renewable vitality,he will likely be supplied on a lease to personal foundation, permitting thecustomers to make preliminary deposits and unfold the repayments of stability prices of the merchandise over an agreed interval.

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We name on our authorities to droop the present 5 % import obligation and 5 % VAT levied on photo voltaic elements that make the product past the buying functionality of many rural dwellers that stand to achieve probably the most from their use. Federal authorities ought to take into account establishing a nationwide clear/renewable vitality fund to be deployed to advertise using photo voltaic panels, vitality environment friendly home equipment and different clear vitality equipments. It may be deployed to provision and distribution of fresh range for rural girls as a way to alleviate the risks of inhaling harmful fumes from firewood which is one other fossil gasoline. Clear prepare dinner range is a greater choice. With clear prepare dinner stoves, our moms don’t have to undergo from the well being associated sicknesses that come out from kerosene.

Federal authorities ought to take into account the elimination of gasoline subsidy and half the financial savings can be utilized to finance clear vitality supply, the federal government also needs to take into account within the type of low tariff, import obligation waivers, ought to be prolonged to uncooked supplies for the native manufacture of renewable vitality machineries and components i.e photo voltaic panels, inverters, small hydro machines, wind propellers, and so on. and the federal government also needs to take into account extending tax credit score, holidays and pioneer standing to corporations producing renewable vitality elements. With this, MSMEs in Nigeria can have a conducive surroundings to do their companies with vitality that’s clear, low cost and sustainable.

By ChidiKingsley Anyanwu
Programme Assistant,
Local weather Transformation and Vitality Remediation Society (CLIMATTERS)

[email protected]
THE ENERGY CHALLENGES AND WAY FORWARD FOR MSMEs IN NIGERIA

Within the quest to discovering lasting options to the vitality challenges that befall Small, Medium and Micro Enterprises in Nigeria (MSMEs), one of many options to this menace is the adoption of fresh vitality sources, corresponding to photo voltaic and wind vitality, which serveas mitigation technique for all nations, together with the creating ones, the place Nigeria falls below, in accordance with world improvement index.

At the moment, we’re nonetheless confronted with challenges on how our Micro Small and Medium Enterprises (MSMES) ought to develop their companies. In accordance a latest survey performed by Local weather Transformation and Vitality Remediation Society (CLIMATTERS), there’s poor energy out there, which is unreliable, the payments are very excessive to pay, companies usually make little or no revenue, normally, companies fold up. The small companies rely on using fossil-powered turbines, which has confirmed to pollute the surroundings. Additionally, fueling and upkeep of the turbines are very costly. The turbines make a lot noise and the smoke impacts our well being dangerously.

In line with the report on poor energy provide by the Electrical energy Energy Distributor in Nigeria, the typical energy provide in Nigeria is 3,851MW. The height common energy provide was fastened in January 2017 and was round 4,425MW. Out of the farthest reaches of town of Lagos, you may even see the actual drawback of unstable energy provide in Nigeria.

Although there have been programmes and occasions for a worldwide marketing campaign and name for a clear and sustainable vitality technology and consumption. The worldwide response to local weather change was launched on the earth summit in Brazil within the yr 1992 with a number of conventions on local weather change and different summit that led to the 2015 Paris Local weather Convention, the place 195 nations, together with Nigeria adopted the primary ever authorized binding world local weather change settlement.However ever since then, nothing tangible has been put in place in Nigeria in the direction of assembly these pledges.

The entire vitality sector remains to be principally depending on the fossil gasoline which slows down the event of different types of vitality within the nation. No less than, 30 % of our populations rely on kerosene for his or her vitality wants, exposing this fraction of our inhabitants to kerosene’s well being hazards. The world well being group (WHO) estimates that respiratory kerosene fumes is the equal of smoking two packets of cigarettes a day and two- thirds of grownup females with lung most cancers in creating nations are non-smokers. Indoor air air pollution by kerosene fumes kills 1.5m folks per yr. Nigerians have spent over N17.5 trillion on the acquisition, upkeep and fuelling of turbines in the midst of 5 years, which is an expenditure of N3.5 trillion in a yr. This contains the sum spent by authorities companies, blue chip corporations, small and medium scale enterprises, banks, different company entities and merchants throughout the nation, which don’t have any different choice however to depend on turbines.

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The ever worsening energy provide has led so many corporations to fold up in Nigeria and consequently growing the speed of unemployment and insecurities. Many manufacturing corporations in Nigeria have chosen to relocate to neighboring nations to scale back their expenditure on vitality. Not solely is the excessive value of procuring non-public vitality and a considerable enhance within the industrial tariff for electrical energy affecting Nigerian producers and Micro, Small and Medium Enterprises (MSMEs). In accordance a report, titled “Pushing Off-Grid Renewables for Micro, Small and Medium Enterprises (MSMEs) in Nigeria” revealed by CLIMATTERS IN 2018;a barber who spends N180,000for electrical energy invoice, generator fueling and upkeep, his energy bills in 3years will likely be doubled to N540,000.However in a type the place we’ve got photo voltaic panel to exchange this type of vitality, he can have solely to spend much less and no a lot upkeep is required. A cyber café that spends N366, 000 in per yr on energy expense will likely be spending N1, 098,000 in 3years on energy bills, too, however with a ‘Pay-as-you-go’ choice on renewable vitality,he will likely be supplied on a lease to personal foundation, permitting thecustomers to make preliminary deposits and unfold the repayments of stability prices of the merchandise over an agreed interval.

We name on our authorities to droop the present 5 % import obligation and 5 % VAT levied on photo voltaic elements that make the product past the buying functionality of many rural dwellers that stand to achieve probably the most from their use. Federal authorities ought to take into account establishing a nationwide clear/renewable vitality fund to be deployed to advertise using photo voltaic panels, vitality environment friendly home equipment and different clear vitality equipments. It may be deployed to provision and distribution of fresh range for rural girls as a way to alleviate the risks of inhaling harmful fumes from firewood which is one other fossil gasoline. Clear prepare dinner range is a greater choice. With clear prepare dinner stoves, our moms don’t have to undergo from the well being associated sicknesses that come out from kerosene.

Federal authorities ought to take into account the elimination of gasoline subsidy and half the financial savings can be utilized to finance clear vitality supply, the federal government also needs to take into account within the type of low tariff, import obligation waivers, ought to be prolonged to uncooked supplies for the native manufacture of renewable vitality machineries and components i.e photo voltaic panels, inverters, small hydro machines, wind propellers, and so on. and the federal government also needs to take into account extending tax credit score, holidays and pioneer standing to corporations producing renewable vitality elements. With this, MSMEs in Nigeria can have a conducive surroundings to do their companies with vitality that’s clear, low cost and sustainable.

ChidiKingsley Anyanwu is a Programme Assistant, Local weather Transformation and Vitality Remediation Society (CLIMATTERS) [email protected]

Disclaimer: “The views/contents expressed on this article are the only real accountability of Chidi Anyanwu and don’t essentially replicate these of The Nigerian Voice. The Nigerian Voice won’t be accountable or chargeable for any inaccurate or incorrect statements contained on this article.”

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One comment

  1. Well thats quite alright.. Thanks anyways ….