LCCI demands cheaper energy loans for small businesses

By Diden Abigail Owuntarose

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government, financial institutions and private investors to provide affordable financing and incentives to help small businesses adopt cleaner and cheaper energy sources amid rising operating costs.

The President and Chairman of Council of the LCCI, Leye Kupoluyi, made the call during the chamber’s Eko Gas Scheme 3.0 programme in Lagos, themed “Empowering SMEs Through Affordable Clean Energy”.

Kupoluyi said high energy costs and unreliable electricity supply remained major challenges confronting small and medium-sized enterprises (SMEs), affecting their productivity, competitiveness and ability to remain in business.

He explained that many businesses had been forced to depend on petrol and diesel generators because of unreliable power supply, exposing them to fluctuating fuel prices, high maintenance expenses and frequent production interruptions.

According to him, the high initial cost of installing solar systems, battery storage, gas conversion equipment and energy-efficient machinery prevents many small businesses from switching to more affordable energy alternatives.

He therefore urged the government, development finance institutions, commercial banks and private investors to establish dedicated clean energy financing schemes that would enable SMEs to access low-interest loans.

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The LCCI president also called for targeted tax incentives, accelerated capital allowances and reduced import-related costs on clean energy equipment and essential components not readily available locally.

He further advocated investment in gas processing, transportation, storage and distribution infrastructure to improve access to affordable energy across the country.

Kupoluyi noted that decentralised power solutions, including industrial mini-grids, embedded electricity generation and shared energy facilities, could reduce businesses’ dependence on the national grid.

He said the objective should be to lower energy expenses while improving reliability, productivity and environmental sustainability.

Meanwhile, the Chairperson of the LCCI LPG and Downstream Natural Gas Sectoral Group, Jacqueline Addy, said the chamber’s Eko Gas Scheme 3.0 was designed to provide practical support for small businesses.

She disclosed that the initiative was distributing 100 free liquefied petroleum gas (LPG) cylinders and accessories to selected beneficiaries, including restaurants, bakeries, caterers and food vendors across Lagos State.

Addy stressed that access to affordable energy must be accompanied by adequate safety awareness, proper equipment and responsible handling of gas installations.

Also speaking, the Chief Commercial Officer of Gas Terminalling and Distribution Limited, Abubakar Folami, said switching from petrol or diesel to LPG, compressed natural gas and liquefied natural gas could reduce energy costs by between 35 and 50 per cent, depending on the business and energy requirements.

He emphasised the need for financing support to enable small businesses to overcome the high initial cost of converting their equipment.

The chamber maintained that affordable and reliable energy remains essential to improving the competitiveness of Nigerian businesses, supporting employment and strengthening the country’s productive sector.