Deployment of renewable to increase Nigerian MSMES’ income by $ 10bn

THEREare indications that Micro Small and Medium Enterprises ( MSMES) in Nigeria may increase their revenue by over $ 10 billion going by the adoption of solar energy to power businesses.

With persistent grid collapse and erratic electricity supply, experts have described as sacrosanct for businesses in the country, the deployment of renewable through offgrid solutions.

A new report by Boston Consulting Group ( BCG) and

All- On, a Shell- funded impact investment company, which analysed solar energy implementation on Health, Education and Food Security outcomes as well as its effect on the Environment and Commercial Activity in the country, stressed on the many opportunities for solar in Nigeria.

According to the report, deploying solar to around 15 to 20 million MSMES in markets without reliable grid electricity could increase income at these companies by $ 7 billion to $ 10 billion. That is about 40 per cent of yearly

MSMES earnings in the country.

The report rated Nigeria’s solar off- grid market as one of the fastest growing in Africa, increasing at a 22 per cent average yearly rate during the past five years.

Regretting, however, that the development underperformed its peers in Africa in penetration of off- grid solar, experts at the companies insisted that Nigeria has a long way to go before its solar market could be considered robust.

“Nigeria’s installed photovoltaic ( PV) panel per capita amounts to only about one watt compared to an average of eight watts in similar emerging markets, indicating a big opportunity for further growth in the country. Given the dynamics favouring solar deployment in the country, Nigeria's PV per capita could reach five – eight GW by 2030,” the group said.

The report noted that Nigerian Primary Health Centres ( PHCS) with solar electricity witnessed a 60 to 70 per cent improvement in antenatal care coverage and a 40 to 60 percent reduction in vaccine waste.