By Tom Garba
As Nigeria grapples with persistent electricity shortages, soaring fuel prices and rising operating costs, thousands of small and medium-scale enterprises (SMEs) are fighting for survival. For many business owners, the combination of unreliable grid power and expensive generators has become a major threat to profitability and growth.
Yet amid the challenges, a quiet energy revolution is taking place.
Across markets, business centres, salons, pharmacies and workshops, entrepreneurs are increasingly turning to solar power as a practical alternative—cutting costs, improving productivity and creating jobs in the process.
For some, the transition has meant the difference between shutting down and expanding.
A Business on the Brink
For Mr. Tunde, owner of BOS a computer business centre at POWA Plaza in Nyanya, on the border of the Federal Capital Territory and Nasarawa State, the future of his business looked bleak after the removal of fuel subsidies.
His business depended heavily on electricity to provide services such as typing, photocopying, printing, scanning, online registrations and Computer-Based Tests (CBTs). However, erratic power supply and rising fuel costs steadily eroded his profits.
“I started this business shortly after graduating in 2012. It helped me buy my first car, get married and support my family,” Tunde recalled.
The business was on the verge of shutting down completely. I had already disengaged two staff members because I couldn’t afford to keep them.
“But after fuel subsidy removal, everything became difficult. Almost all the money I was making was going into fuel, electricity bills and generator maintenance.”
According to him, monthly energy expenses averaged between ₦200,000 and ₦220,000, with daily fuel purchases alone costing between ₦6,000 and ₦8,000.
“The business was on the verge of shutting down completely. I had already disengaged two staff members because I couldn’t afford to keep them,” he said.
The turning point came when a neighbour Ms Joy, who worked as a solar power marketer suggested he explore renewable energy.
“That was the best decision I ever made concerning my business,” he said.
Solar Through Instalments
Like many Nigerian entrepreneurs, Tunde initially believed solar power was beyond his financial reach.
When he was first introduced to the technology in August 2023, he could not afford the ₦600,000 required for a 1.5kVA system.
Instead, the supplier offered an instalment arrangement.
“I didn’t have the money at once. The company allowed me to pay in three instalments. The system charged whenever there was electricity at night, and I used the stored power during the day while others were buying fuel.”
The arrangement enabled him to gradually transition away from generator dependence.
Encouraged by the results, he later expanded the system and invested an additional ₦1.9 million in another branch of his business.
According to him, the money came largely from savings generated after reducing fuel consumption and generator maintenance costs.
“The solar practically financed itself,” he said.
Recovering ₦2.5 Million in One Year
In April 2024, Tunde purchased solar panels and became fully independent of the national grid for his business operations.
The impact was immediate.
He no longer needed to spend money on fuel, generator servicing or daily electricity purchases.
“The biggest surprise was going through an entire week without spending one naira on power,” he said.
“I couldn’t believe it.”
Within one year, he had recovered the total ₦2.5 million investment through operational savings.
More importantly, customers returned.
“My shop always has electricity now. People can walk in and print documents, make photocopies or register for examinations immediately without waiting for a generator to be switched on.”
Customers keep trooping in. I now employ more people and can pay salaries comfortably.
Business improved so significantly that he opened another branch and expanded his workforce.
“Customers keep trooping in. I now employ more people and can pay salaries comfortably.”
Similar Success Stories
Tunde’s experience is not unique.
Mr. Okechukwu Omiyi, owner of a Exploit barbing salon on Calvary Street in Nyanya, said solar power transformed his business.
He installed a solar system in 2022 consisting of a lithium battery, a 2.5kVA hybrid inverter and four 600-watt solar panels for about ₦900,000.
Before switching, he spent between ₦70,000 and ₦120,000 monthly on fuel in addition to electricity bills.
“Now I only pay my electricity bill. I no longer buy fuel,” he said.
According to him, maintenance costs over the past five years have been less than ₦100,000.
“I have absolutely no regrets.”
For Madam Favor, owner of UTC Pharmacy in Nyanya, the decision to adopt solar was inspired by another entrepreneur’s success story.
She installed a 1.5kVA solar system with lithium batteries in early 2026 through a payment plan.
Before the installation, her monthly energy expenditure ranged between ₦150,000 and ₦200,000.
Today, she spends only about ₦10,000 monthly on electricity units while relying primarily on solar power.
“As revenue increases, expansion definitely follows,” she said.
Her workforce has already grown from two employees to five.
The Cost Barrier
Despite increasing interest, high upfront costs remain the biggest obstacle to widespread adoption.
A cold-room operator Mr Phillip Jonah said he still relies on diesel generators despite recognising solar’s advantages.
“I’ve considered solar, but removing ₦2 million from my business now would automatically shut me down,” he said.
He described erratic electricity supply as a major challenge, noting that power outages sometimes last between two and four days.
During such periods, he depends entirely on generators.
While he believes solar is ultimately cheaper than fuel, financing remains a hurdle.
“Ten litres of diesel now costs about ₦26,000 and may not last a full day. Then you still need to service the generator.”
Yet he remains hesitant.
The reason? Cost.
His concerns reflect those of many Nigerian business owners who acknowledge solar’s long-term benefits but struggle to raise the initial capital required.
Financing Models Expanding Access
Industry experts argue that financing solutions are gradually making solar more accessible.
According to Engr. Jamiu Abdulsalam, Chief Executive Officer of Jameel Technology and Solar Solutions, three major financing models currently dominate the market.
The first is outright purchase.
The second allows customers to pay approximately 75 per cent upfront and spread the balance over several months.
The third is an “easy-buy” arrangement where customers make a small down payment and pay the balance in weekly or monthly instalments.
“Many SMEs now adopt flexible payment plans because they cannot afford the full cost immediately,” Abdulsalam explained.
Such arrangements are helping bridge the affordability gap while expanding renewable energy adoption.
Rising Costs Threaten Progress
While adoption is increasing, solar providers warn that prices have risen sharply over the past three years.
We do not yet have the capacity to meet national demand.
According to Abdulsalam, systems that sold for between ₦600,000 and ₦700,000 in 2023 now cost between ₦1.5 million and ₦2.5 million.
He attributed the increase to growing demand, higher transportation costs and international supply chain disruptions linked to geopolitical tensions.
“Solar prices have doubled in recent years,” he said.
Nevertheless, many business owners still view solar as more economical than long-term dependence on generators.
Import Ban Debate Raises Concerns
The Federal Government’s proposal to encourage local production and eventually restrict solar imports has generated concern among industry stakeholders.
Many business owners fear that an outright import ban could increase costs and slow adoption.
Abdulsalam believes local manufacturing should be strengthened before any restrictions are introduced.
“We do not yet have the capacity to meet national demand,” he said.
“If imports are banned now, prices will rise significantly, fake products could flood the market, and only a few people will be able to afford solar systems.”
Several entrepreneurs interviewed for this report shared similar concerns.
They urged government to support domestic manufacturers through tax incentives, financing support and industrial policies before considering import restrictions.
“Support local producers first so they can manufacture quality products in sufficient quantities,” one business owner said.
A Pathway to Economic Growth
Energy analysts Mr Benjamin Uche say the rise of decentralised solar power presents a significant opportunity for Nigeria.
I tell every business owner to consider solar. It’s cheaper than fuel, cheaper than generator maintenance, and customers love the quiet environment. No noise, no smoke—just power.
Beyond reducing pressure on the national grid, solar adoption can help SMEs lower costs, improve competitiveness and create jobs.
For millions of small businesses, reliable electricity remains one of the biggest constraints to growth.
As fuel prices continue to rise and power shortages persist, renewable energy is increasingly becoming an economic necessity rather than a luxury.
Back in Nyanya, Tunde believes solar power saved his livelihood.
What began as a desperate attempt to avoid shutting down has evolved into a growth strategy that enabled expansion, job creation and long-term stability.
“I tell every business owner to consider solar,” he said.
“It’s cheaper than fuel, cheaper than generator maintenance, and customers love the quiet environment. No noise, no smoke—just power.”
His story reflects a broader reality emerging across Nigeria: while the country’s energy crisis continues, many entrepreneurs are proving that solar power may offer one of the most practical routes to survival, resilience and growth.
Read Also: Solar Now Nigeria’s Lifeline as FG Cancels World Bank’s $717m Loan Meant to Support Reform
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