Key points
- Businesses are increasingly adopting solar energy to reduce operating costs
- Studies show solar users are recording lower energy expenses and higher incomes
- Solar adoption is improving productivity and business resilience
- Stakeholders support local solar manufacturing but oppose an immediate import ban
- Experts say supportive policies and financing are needed to expand adoption
Main story
Nigerian businesses are increasingly turning to solar energy to reduce operating costs and improve productivity amid persistent electricity supply challenges, according to a report by Constance Athekame of the News Agency of Nigeria (NAN).
The shift comes as many businesses struggle with frequent power outages, rising fuel costs and heavy reliance on generators, which continue to increase operating expenses and limit productivity. Studies cited in the report show that solar adoption is delivering measurable financial benefits. A 2025 study on Small and Medium Enterprises (SMEs) in Northern Nigeria found that businesses using solar energy achieved energy cost savings of between 20 and 30 per cent, while recording income growth of between 15 and 25 per cent.
Another study involving 700 MSMEs across Lagos, Kano and Ondo states found that businesses using solar power reported higher monthly incomes, lower electricity expenses and improved operational reliability. Business owners interviewed in the Federal Capital Territory said solar energy had helped them maintain operations, preserve products, extend business hours and improve customer service.
Industry stakeholders also noted that the growing solar sector is creating jobs across installation, maintenance, sales and technical support while attracting investments into Nigeria’s renewable energy market.
However, concerns remain over plans to restrict solar panel imports. While stakeholders support local manufacturing, they have urged the government to adopt a gradual transition to avoid making solar systems less affordable for businesses and households.
The issues
- Unreliable electricity supply and its impact on businesses
- Rising fuel and generator operating costs
- Expanding renewable energy adoption among SMEs
- Balancing local manufacturing goals with affordability
- Energy access and economic competitiveness
- Policy uncertainty around solar panel imports
What’s Being Said
“Businesses using solar energy achieved energy cost savings of between 20 and 30 per cent, while also reporting income growth of between 15 per cent and 25 per cent.” — Findings from a 2025 study on SMEs in Northern Nigeria highlighting the economic benefits of solar adoption.
“Let me be clear, we wholeheartedly support local manufacturing of solar panels.” — Joseph Ibrahim, Nigeria Campaign Director, Secure Energy Project, supporting efforts to build domestic production capacity.
“If we rush this, we risk making solar power too expensive for the millions, who currently rely on it for survival.”— Ibrahim, warning that a sudden policy shift could undermine access to renewable energy.
“Affordability will be an issue, so we advocate that there should be a phase ban instead of an immediate one.” — Femi Asonibare, Team Lead, Environmental Sustainability and Green Economy, advocating a gradual transition toward local manufacturing.
What’s Next
Stakeholders expect solar adoption to continue growing as businesses seek alternatives to unreliable grid electricity and expensive generator-powered operations. Attention is also likely to focus on government decisions regarding solar panel imports, local manufacturing incentives and financing mechanisms aimed at expanding renewable energy access.
Bottom line
Solar energy is increasingly becoming a cost-saving and productivity-enhancing solution for Nigerian businesses, but stakeholders say policies supporting local manufacturing must be carefully implemented to preserve affordability and expand access.
