Business Management

FG targets solar-based 8-hour power supply for MSMEs in 2024 

FG targets solar-based 8-hour power supply for MSMEs in 2024

In a televised interview on December 31, 2023, via Channels Television, Temitola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs, emphasized the Tinubu administration’s commitment to securing alternative power sources for Micro, Small, and Medium Enterprises (MSMEs).  

This initiative aims to sustain these businesses considering the ongoing challenges posed by the unreliable electricity supply across the country.  

Adekunle-Johnson highlighted the administration’s proactive efforts to address the critical issue facing MSMEs.  

He said they are working diligently to provide reliable power alternatives, recognising the pivotal role MSMEs play in the nation’s economic growth and stability.

This initiative seeks to ensure the continued operation and vitality of these enterprises amidst the persisting electricity supply challenges.  

He said: 

  • “I am aware that we are in deep discussions with the Rural Electrification Agency (REA) to ensure solar power access for MSMEs across many markets, so, what we are doing is when you have a market that has a cluster of small businesses maybe a thousand or thereabouts, we are trying to power those markets to ensure that these MSMEs some into their business daily and have a guaranteed 8-hours of light. I am aware that before the second quarter of 2024, this will be ramped up significantly.”  
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He further mentioned that a similar initiative had been implemented during the previous administration, particularly in the Ariaria market located in Abia state.

Additionally, there are ongoing discussions aimed at extending this initiative to benefit numerous market clusters across various states.   

The objective is to provide alternative power sources specifically tailored for these market clusters.   

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Highlighting the importance of considering solar energy, he emphasized that it presents a viable solution for Micro, Small, and Medium Enterprise (MSME) owners.   

He stressed the significance of this shift by noting the considerable daily expenses incurred by business owners in running generators for power supply.  

Hence, advocating for a transition to solar power due to its potential cost-effectiveness and sustainability for these businesses.  

He highlighted an example of someone earning N10,000 daily, which isn’t entirely a profit; let’s say around N5,000 is actual profit. Now, this person ends up spending about N3,000 every day just to keep the generator running.  

If this business owner operates for 30 days, the reality is that they are earning less because a significant portion of their earnings is invested in ensuring the survival of the business.  

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According to him, this challenge is a priority that the administration is actively addressing behind the scenes to support businesses and their sustainability in the country. The aim is to alleviate these burdens and create an environment where businesses can thrive. 

  

MSME loan facility – January 2024  

Additionally, he highlighted a forthcoming development: by the end of January 2024, MSMEs across the nation will gain access to a single-digit loan, specifically a 9% loan from the Bank of Industry.

This initiative means that MSMEs can approach the Bank of Industry branches nationwide and secure loans at this favourable interest rate, providing them with enhanced financial support. 

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