The Centre for the Promotion of Private Enterprise (CPPE) is calling on the Nigerian government to broaden incentives for renewable energy adoption as a way to help businesses cope with rising costs across the country.
The call comes as global energy prices soar, driven mainly by geopolitical tensions in the Middle East, which have pushed up operating costs for businesses.
In an advisory note released on Sunday, the organisation highlighted that the situation in Nigeria is especially challenging, as many businesses rely heavily on petrol and diesel generators due to the unreliable power supply.
Muda Yusuf, CEO of the CPPE, says that rising fuel prices are piling onto existing economic challenges such as high inflation, steep interest rates, and shrinking consumer spending power.
Yusuf cautioned that without intentional policy backing and operational tweaks, growing energy costs could seriously cut into profit margins and threaten the long-term viability of businesses, especially small and medium-sized ones. He added that boosting energy efficiency is still one of the fastest and most budget-friendly ways for companies to handle rising fuel costs.
The CPPE therefore advised businesses to review their energy consumption patterns, optimise generator operating hours and adopt energy-efficient equipment in order to minimise fuel usage. It also encouraged firms to gradually diversify their energy sources by exploring alternatives such as solar power systems, hybrid energy solutions and gas-powered generators where infrastructure is available.
Beyond operational adjustments, the organisation said businesses should also strengthen logistics and supply chain efficiency to reduce transportation-related fuel costs. Measures such as optimising transport routes, consolidating deliveries and improving fleet management systems could significantly lower energy-related operating expenses.
The CPPE added that government policy support remains critical for long-term cost stability, urging authorities to expand fiscal incentives for renewable energy investments, strengthen domestic refining capacity and improve electricity supply reliability. According to the organisation, these measures would reduce the heavy dependence on diesel and petrol generators and enhance the competitiveness of Nigeria’s business environment.
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