CPPE urges Nigerian businesses to adopt energy efficiency amid rising fuel costs
The Centre for the Promotion of Private Enterprise (CPPE) has warned Nigerian businesses and the government to adopt proactive measures to cushion the impact of rising energy costs driven by escalating Middle East geopolitical tensions. The advisory, released by CPPE CEO Muda Yusuf, highlights that businesses heavily reliant on petrol and diesel generators due to poor electricity supply face intensified cost pressures. Fuel price increases exceeding 25% in major cities have worsened operating expenses, transportation costs and distribution charges, threatening SME survival and profit margins. CPPE recommends immediate energy efficiency measures including reducing waste, optimizing generator usage and deploying energy-efficient equipment. Businesses should also diversify energy sources through solar power, hybrid systems and gas generators where infrastructure exists. For government, CPPE calls for tax incentives for renewable energy adoption, import duty waivers for equipment and affordable financing for SMEs. Strengthening domestic refining capacity and improving electricity supply reliability are also critical to reduce Nigeria's vulnerability to global energy shocks. Without these interventions, rising energy costs could significantly erode business sustainability and dampen economic growth.