Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, has affirmed the agency’s commitment to addressing the power challenges faced by MSMEs in Nigeria. Recognizing the pivotal role energy plays in businesses, especially for small and medium enterprises, Odii emphasized the need for sustainable solutions.
The Manufacturers Association of Nigeria highlights that energy costs constitute over 30 percent of the operational expenses for businesses in the country. This significant percentage underscores the impact of energy challenges on the overall cost structure of enterprises, affecting their competitiveness and profitability.
Adding to the challenges, the recent increase in petrol prices has exacerbated the difficulties faced by struggling MSMEs. These enterprises already contend with various operational hurdles, making it crucial to explore alternative and sustainable energy sources to mitigate their overall burden.
In an effort to explore viable solutions, Charles Odii conducted an inspection visit to Wuse Market on November 27, 2023. The visit focused on assessing renewable energy solutions provided by Green Village Electricity, a notable player in the sustainable energy sector.
During the inspection, Odii expressed SMEDAN’s willingness to forge partnerships with Green Village Electricity and other stakeholders. The goal is to collaborate in delivering sustainable energy solutions specifically tailored to identified clusters and Common Facility Centres earmarked by SMEDAN.
Engaging directly with MSMEs operating in Wuse Market, Odii sought their perspectives on the adoption of renewable energy. This engagement aimed to understand the practical challenges faced by businesses and gather insights into how renewable energy could contribute to both business growth and environmental conservation.
In response to the findings and discussions during the market visit, the Director General directed Onesi-Lawani Daberuje, who heads the Climate Energy and Sustainable Enterprises division at SMEDAN, to promptly develop an implementation framework. This framework would pave the way for the phased rollout of the renewable energy project, ensuring a systematic and effective approach to addressing energy challenges in MSMEs.
By actively involving stakeholders and seeking input from MSMEs, SMEDAN aims to tailor its initiatives to the specific needs of businesses in different sectors. The collaboration with Green Village Electricity signifies a proactive step towards integrating renewable energy solutions into the operational landscape of MSMEs.
In conclusion, the efforts led by Charles Odii and SMEDAN reflect a commitment to fostering sustainable development in the MSME sector. Recognizing the interconnectedness of energy challenges and overall business viability, the agency is taking strides to facilitate access to reliable and affordable renewable energy for MSMEs. As the implementation framework takes shape, it is anticipated that this initiative will contribute to the resilience and growth of MSMEs while also addressing environmental concerns associated with traditional energy sources.
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