As Nigeria and other countries across the globe continue to face surge in energy prices, driven by escalating geopolitical tensions in the Middle East, Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, has called for the adoption of deliberate adjustments by businesses and supportive policy interventions from government to absorb the rising energy costs. In a statement, Dr. Muda called for the implementation of key strategic measures that both businesses—particularly small and medium enterprises (SMEs)—and government should adopt to mitigate the impact of the current energy crisis. For businesses, he said improving energy efficiency remains the quickest and most cost-effective strategy for them to manage rising energy costs. SPONSOR AD “Firms should undertake a comprehensive review of their energy consumption patterns with the objective of minimizing waste and maximizing productivity per unit of energy used,” he said. He said businesses should intensify efforts to improve energy efficiency within their operations as a key strategy for managing rising fuel costs. “This includes optimising generator operating hours, deploying energy-efficient machinery and equipment, strengthening internal energy management practices, and promoting energy conservation among staff. Even relatively modest improvements in energy efficiency can yield significant reductions in fuel consumption and operating expenses, thereby helping to cushion the impact of escalating energy prices on business sustainability,” Yusuf added. He added that the current crisis highlights the strategic importance of energy diversification and as Nigerian businesses remain excessively dependent on diesel and petrol generators for electricity generation, it exposes them to significant fuel price volatility. “Businesses should therefore gradually explore alternative energy solutions such as solar power systems, hybrid energy systems combining solar with generators, and gas-powered generators in locations where gas infrastructure is available. While the upfront investment cost may appear significant, the long-term savings from renewable and hybrid energy solutions are becoming increasingly compelling in the face of persistently high fuel prices,” Yusuf said. On the other hand, he said the government should expand fiscal and regulatory incentives that encourage businesses to adopt renewable energy solutions. “This may include tax incentives for solar installations, import duty waivers for renewable energy equipment and fiscal support for investments in energy-efficient technologies. Such measures would help reduce the structural energy cost burden faced by Nigerian businesses.” He added that access to affordable financing remains one of the major barriers preventing SMEs from investing in alternative energy systems. “Government, development finance institutions and commercial banks should therefore create dedicated financing windows to support investments in renewable energy solutions and energy-efficient equipment. Reducing the cost of financing will accelerate the transition to cleaner and more affordable energy systems for businesses.”