Renewables
LCCI urges tax breaks and finance to boost SME clean energy
The Lagos Chamber of Commerce and Industry has called for fiscal incentives and affordable credit to help small businesses transition to sustainable power sources.
Key points
- LCCI president Leye Kupoluyi highlighted high operational expenses driven by unreliable grid electricity and volatile fuel prices.
- The chamber recommends tax waivers, accelerated capital allowances, and lower import tariffs on clean energy hardware.
- The Eko Gas Scheme 3.0 distributed free liquefied petroleum gas cylinders to one hundred local businesses in Lagos.
Small and medium-sized enterprises in Nigeria require targeted fiscal support and accessible credit facilities to overcome high power expenses, according to the Lagos Chamber of Commerce and Industry. Speaking at an industry event in Lagos, LCCI President Leye Kupoluyi stated that erratic public electricity forces companies to rely on expensive petroleum-powered generators, which limits productivity and competitiveness.
Mr Kupoluyi advocated for reduced import levies on renewable generation equipment, battery storage units, and energy-efficient industrial machinery. He also urged commercial lenders, development finance institutions, and government bodies to establish specialized credit windows to mitigate the steep initial capital requirements of switching to gas or solar power.
What happened
During the annual gathering of the chamber's Liquefied Natural Gas Group, stakeholders discussed strategies to expand access to cleaner fuels. Jacqueline Addy, chairperson of the LCCI's LPG and Downstream Natural Gas Sectoral Group, noted that energy expenditures severely restrict profit margins for hospitality firms and food vendors.
As part of the proceedings, the Eko Gas Scheme 3.0 handed out one hundred complimentary liquefied petroleum gas cylinders and accessories. Beneficiaries included caterers and small-scale food operators from across the fifty-seven local government areas in Lagos State. Abubakar Folami of Gas Termination and Distribution Limited explained that the initiative aims to substitute traditional cooking fuels such as charcoal and firewood with safer alternatives.
Why it matters
Transitioning small businesses away from traditional biomass and expensive diesel generators is critical for Nigeria's broader economic stability. According to World Bank data from 2024, only 28 percent of the Nigerian population has access to clean cooking solutions, compared to a global average of 75.4 percent. Furthermore, electricity consumption stands at just 140.6 kilowatt-hours per person annually, starkly trailing the global average of 3,708.5 kilowatt-hours. Addressing these structural gaps through targeted equipment financing and localized gas distribution can lower operating costs for enterprises while improving public health and environmental outcomes.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
22.0% of electricity in Nigeria was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
