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From Darkness to Light: How Renewable Energy is Empowering Nigeria’s Industrial Workforce

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A group of SME tailors at a Common Facility Centre powered by solar. Credit: SMEDAN

…..From South to North, the ripple effect is undeniable: renewable energy is not just keeping businesses alive,  it’s helping them thrive.

Whenever the power ceases in her modest tailoring shop in Surulere, Amina Yusuf, a 36-year-old garment maker and mother of two, often pauses mid-stitch not from fatigue, but because the familiar melodic hum of her sewing machine fades into an unsettling silence.

For years, erratic electricity supply and soaring fuel prices threatened to undo her small business dream.

“Sometimes, I would spend over ₦25,000 a week on fuel just to keep production going,” she recalled, wiping sweat from her forehead. “But there were days I couldn’t meet customer deadlines because we simply couldn’t afford to run the generator all day.”

In 2024, Amina’s fortune began to change when she became a member of a Common Facility Centre (CFC) established by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The centre, powered by a 120KVA solar system, allows over 500 garment makers to share industrial machines and reliable electricity at a fraction of the usual cost.

“Now, I pay a small fee to use the facility, and my expenses have dropped by more than half,” she said, smiling as she delightfully gaze the rows of humming, solar-powered sewing machines adorning the room. “I can finally focus on my designs instead of worrying about power supply.”

Her story mirrors that of thousands of Nigerian small manufacturers like artisans, welders, bakers, and fabricators, whose operations hinge on affordable and reliable energy. Across the country, renewable power is emerging not just as an alternative, but as a lifeline for Nigeria’s struggling industries.

Powering Progress Through Renewable Energy

According to SMEDAN, energy costs represent a staggering 50%–70% of the total production costs incurred by small-scale manufacturing enterprises. This, the agency says, makes Nigeria’s Micro, Small and Medium Enterprises (MSMEs) globally uncompetitive due to the inadequacies of the public power supply.

“Unreliable power supply has severely impacted Nigeria’s manufacturing sector,” explained Daberuje Onesi-Lawani, Director (Monitoring & Evaluation) in the DG’s Office at SMEDAN.

“In the first quarter of 2024, capacity utilization plummeted to 56.4%, while inventories of unsold products escalated by an astonishing 357.57% to ₦1.24 trillion. Furthermore, the generation of employment diminished by nearly 30%. Manufacturers are now allocating 40–45% of their operational expenditures to self-generated electricity, in stark contrast to a mere 5–10% in nations with reliable power grids,” he remarked.

To cushion the impact, SMEDAN has been making strategic investments in solar-powered Common Facility Centres located in Industrial Development Clusters nationwide.

“The Abuja CFC, for instance, enables over 500 garment makers to operate sustainably,” Onesi-Lawani added. “Ninety-nine per cent of users have reported a 60–70% reduction in operational costs.”

SMEDAN Common Facility Centre Abuja Solar panel during commissioning. Credit: SMEDAN

He emphasized that steady power supply not only boosts production but also engenders a multiplier effect on employment, technical skills, and socio-economic wellbeing.

Private Sector Innovations Driving Change

Industry players such as JA Solar, a global leader in photovoltaic technology, are stepping up efforts to bridge Nigeria’s industrial energy gap through renewable integration and hybrid systems.

“Nigeria’s industrial sector holds immense potential as the backbone of Africa’s largest economy, yet it grapples with chronic power shortages that hinder productivity,” said a JA Solar spokesperson.

“At JA Solar, we are inspired by the opportunity to bridge this gap with high-efficiency photovoltaic modules and integrated energy storage solutions tailored to manufacturing demands.”

The company currently supports over 500 commercial and industrial sites across Africa, with a growing presence in Nigeria through local partnerships and hybrid energy setups.

“Clients report up to 40% reductions in energy costs and 25% increases in operational uptime,” the spokesperson added, citing examples from textile and agro-processing factories where consistent solar power has eliminated downtime and boosted productivity.

However, offering these solutions is not without challenges.

Policy, Finance, and Infrastructure Barriers

According to JA Solar, three main obstacles slow renewable energy adoption in Nigeria’s manufacturing sector: policy inconsistencies and delayed incentives that discourage private investors, high upfront financing costs and limited access to affordable credit, and infrastructure gaps, especially poor grid integration and weak transmission capacity.

JA Solar Supplies High-Efficiency Modules to Zambia’s Largest PV Project. Credit: JA Solar 

Energy analyst Ayodeji Stephens agrees that addressing these barriers will determine how fast Nigeria transitions to a cleaner, industrially competitive economy.

“Without stable energy, we cannot talk about manufacturing recovery,” Stephens said. “The high cost of diesel and petrol erodes MSMEs’ profit margins. But renewable energy offers a sustainable escape if government aligns policies with affordable financing.”

He noted that innovative models like leasing, green bonds, and public-private partnerships (PPPs) could make renewable energy accessible to more businesses.

“Leasing allows factories to pay for solar installations through monthly savings, while green bonds attract long-term institutional capital,” he said. “If Nigeria channels even half of its current fossil fuel subsidies into renewable projects, we could power thousands of MSMEs sustainably.”

Partnerships for Industrial Transformation

Experts believe collaboration between government, manufacturers, and energy firms is critical.

Existing partnerships, such as private energy firms working with the Rural Electrification Agency (REA), have shown promise. But JA Solar insists more needs to be done to create “tripartite alliances” involving the private sector, manufacturers, and government.

“With tax incentives, clear policy direction, and local assembly plants, we can localise up to 50% of solar component production by 2030,” the spokesperson said. “That is how to reform industrial power from fossil-dependent to hybrid-renewable systems.”

SMEDAN’s Onesi-Lawani added that reinforcing existing industrial clusters and linking them with renewable energy providers could transform Nigeria’s local production landscape.

“Powering clusters with renewable energy doesn’t just reduce costs; it creates value chains, strengthens export capacity, and supports job creation,” he explained.

The Future: A Greener, Stronger Economy

Looking ahead, experts say Nigeria’s industrial power future lies in a hybrid model, a blend of solar, hydro, wind, and gas working in synergy.

“By 2035, renewables could contribute up to 1.7 GW of power to Nigeria’s grid, with solar leading the way,” said Stephens. “If we sustain this growth, the manufacturing sector could rebound sharply, restoring jobs and boosting exports.”

JA Solar projects that full sustainability could be achieved by 2040, provided policies remain consistent and financing mechanisms are deepened.

For entrepreneurs like Amina Yusuf, however, the future is already bright.

“Before, power failure meant losing income,” she said. “Now, I’m producing more and saving more. I even trained two apprentices who plan to open their own solar-powered shops.”

Business &Economy

Blue Economy: Why Nigeria Must Prioritise Maritime Sector for Jobs and Growth

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Nigeria should prioritise the blue economy above all other sectors to drive job creation, reduce poverty and diversify from oil, according to a senior official at the Nigerian Maritime Administration and Safety Agency (NIMASA).

In an opinion piece, Chika Chukwudi — author of Blue Economy: Gateway to a Sustainable Future and a staff member of NIMASA — argued that maritime investment is no longer optional but a “strategic national imperative”.

She said Nigeria’s 850-kilometre Atlantic coastline and access to the Gulf of Guinea position it as a natural maritime powerhouse.

Yet, she noted, the sector contributes far below its potential to national GDP.

“A nation surrounded by water should not be surrounded by economic stagnation,” she wrote.

Why It Matters

Nigeria has long depended on crude oil revenues, leaving its economy exposed to global price shocks.

According to global trade estimates, more than 80% of world trade by volume is carried by sea — a figure experts say Nigeria has not fully leveraged.

Chukwudi argues that expanding ports, fisheries, aquaculture, shipping and coastal tourism could generate millions of jobs across skill levels.

From artisanal fishermen to marine engineers and port managers, she said the sector has unmatched employment capacity.

“If properly harnessed, the blue economy can become Nigeria’s largest employer of labour,” he stated.

Job Creation and Poverty Reduction

Poverty remains most severe in rural and coastal communities, many of which are located near water resources.

Chukwudi said investments in modern fishing techniques, cold storage facilities and export systems could raise incomes at grassroots level.

He added that women in fish processing and marketing, as well as young entrepreneurs in aquaculture, stand to benefit.

Diversification Beyond Oil

For decades, Nigeria’s revenue has fluctuated with oil prices.

Strategic port modernisation, indigenous shipping development and marine renewable energy projects could attract foreign investment and reduce capital flight, Chukwudi said.

She also pointed to opportunities under the African Continental Free Trade Area (AfCFTA), where maritime infrastructure could position Nigeria as a regional trade gateway.

Security and Regional Influence

Beyond economics, maritime investment could strengthen national security.

Improved naval surveillance and port systems may reduce piracy and illegal fishing in the Gulf of Guinea — a region previously identified as a piracy hotspot.

 

 

 

 

 

Some shipping operators argue that port congestion and high operating costs must be addressed before Nigeria can compete with other African maritime hubs.

What’s Next?

Chukwudi called for prioritising maritime education, strengthening institutions and expanding coastal infrastructure.

She urged the Federal Government to finance aquaculture enterprises and support indigenous shipping lines.

“The blue economy is not just another sector; it is a sleeping giant,” she wrote. “Nigeria’s prosperity lies not only beneath its soil, but upon its waters.”

Whether policymakers will elevate maritime investment above competing priorities remains to be seen.

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Nigeria Customs Inspects Tsamiya–Segbana Border After Reopening for Transit Trade

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Nigeria Customs Service (NCS) officials have inspected transit operations along the Tsamiya–Segbana–Kamba corridor in Kebbi State, following the reopening of the border for international trade.

The inspection was led on Monday by the Customs Area Controller for Kebbi Command, Comptroller Mahmoud Matawalle Ibrahim, alongside Comptroller Aminu Sule of the Federal Operations Unit (FOU) Zone B.

It was aimed at ensuring that only legitimate transit goods move through the route, without diversion into Nigeria’s local markets.

Why it matters

The Tsamiya–Segbana corridor links Nigeria to Benin and Niger Republics, serving as a strategic route for regional trade under ECOWAS transit arrangements.

Authorities say poor monitoring in the past allowed smuggling and diversion of goods, costing governments revenue and undermining fair trade.

The border was reopened following approval by the Comptroller-General of Customs, Bashir Adewale Adeniyi, as part of wider efforts to balance trade facilitation with border security.

What customs officials are saying

Addressing stakeholders during the inspection, Comptroller Matawalle said the exercise was designed to enforce approved transit procedures across Nigeria’s international borders.

“The purpose of this assignment is to ensure strict compliance with approved procedures governing the transit of legitimate goods across the international borders of Benin and Niger Republics through Kebbi State,” he said.

He stressed that transit trucks must not be diverted from their approved destinations for local consumption.

The comptroller also appealed to traditional rulers and host communities to work with customs officers to ensure smooth truck movement and a peaceful operational environment.

Security and enforcement assurances

Comptroller Aminu Sule, who represents the Federal Operations Unit, assured stakeholders of enforcement support along the corridor.

He said the Service would provide “the necessary assistance to facilitate trade across international borders, in line with its mandate.”

The FOU is responsible for intercepting smuggled goods and enforcing compliance beyond border posts.

Regional and diplomatic reactions

Officials from neighbouring countries welcomed the reopening of the corridor and Nigeria’s renewed engagement.

Customs representatives from Benin and Niger Republics expressed appreciation to President Bola Ahmed Tinubu, the Kebbi State Government, and the Comptroller-General of Customs for approving the transit arrangement.

They said the decision had created space for dialogue and improved regional cooperation.

Community and stakeholder response

The District Head of Kamba, Alhaji Mamuda Zarumai (Sarkin Shikon Kamba), described the initiative as beneficial to both local communities and the wider economy.

He pledged to caution residents to cooperate fully with customs officials.

He noted that the initiative was “for the overall benefit of Nigerians.”

Speaking for traders and transport operators, Alhaji Idi Bagudo, Chairman of Stakeholders in Kebbi State, promised full compliance with transit regulations.

He assured authorities that stakeholders would not condone any diversion of trucks from their intended destinations in the Niger Republic.

What happened next

The inspection ended with customs officers escorting transit trucks from Kamba across the border to Tungan Kado in the Niger Republic.

Officials say similar monitoring exercises will continue to ensure the corridor remains secure, transparent, and economically viable.

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Nigeria Targets Seven-day Cargo Clearance as PEBEC, NPA Push Port Reforms

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Nigeria loses billions of naira each year to congestion, paperwork delays, and inefficiencies at its ports—costs that are ultimately passed on to businesses and consumers.

Reducing cargo dwell time is seen as critical to lowering import costs, boosting trade competitiveness, and improving the ease of doing business.

What’s happening

The Presidential Enabling Business Environment Council (PEBEC), working with the Nigerian Ports Authority (NPA), has concluded a three-day stakeholder engagement aimed at reducing cargo dwell time to seven days.

The meeting, held at the Lagos Port Complex in Apapa, brought together regulators and private sector operators under the Business Environment Enhancement Programme Accelerator (BEEPA).

It followed a “shadowing” exercise in which officials observed vessel berthing and cargo clearance processes at both Tincan Island Port and Lagos Port Complex.

Government’s position

Speaking at the session, PEBEC Director General Zahrah Mustapha said the focus was shifting from identifying problems to implementing solutions.

“Nigeria loses significantly every day due to operational inefficiencies,” Mustapha stated.

“These are not just numbers; they represent missed opportunities, jobs not created, and delayed economic growth. This reform is about resilience and unlocking the nation’s economic potential.”

She said the reform effort brings together regulators and private sector players to ensure transparency and accountability.

According to PEBEC, the goal is to reduce cargo dwell time while also improving vessel turnaround time at Nigerian ports.

NPA response and reforms

Earlier, the Managing Director of the Nigerian Ports Authority, Abubakar Dantsoho, reaffirmed the agency’s support for PEBEC’s reform agenda.

He said the NPA is working with the International Maritime Organisation (IMO) to deploy a Port Community System (PCS).

The system is expected to serve as the digital backbone for Nigeria’s National Single Window, helping to eliminate manual processes and align port operations across agencies.

The NPA says this digital shift will reduce bottlenecks and speed up cargo processing.

Track record

The Ports Authority noted that it achieved a 100% success rate in implementing PEBEC reforms.

In 2025, the NPA ranked fifth among government agencies assessed, recording an 84.2% compliance score.

Officials say this performance provides a foundation for deeper reforms at the ports.

Industry and public impact

For importers and exporters, faster cargo clearance could mean lower storage costs, fewer delays, and more predictable supply chains.

What’s next

PEBEC and the NPA say the recommendations from the engagement will be rolled out in the coming months.

They aim to close gaps identified during the port inspections and create a more efficient maritime environment to support seamless trade.

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