By Peter Egwuatu

Nigeria stands at a pivotal juncture in its pursuit of sustainable energy solutions. The federal government’s recent announcement to invest ₦100 billion in solar energy infrastructure for public institutions, including a notable ₦10 billion allocation for the Presidential Villa, has ignited discussions nationwide.

This initiative aims to address the country’s persistent power supply challenges, yet it also raises critical questions about resource allocation and the broader implications for economic development.

In this context, we engage with a seasoned Business Analyst, Mr Damilare Davola, to delve into the nuances of this policy.

With a focus on the potential impacts on micro, small, and medium enterprises (MSMEs), the conversation explores the balance between governmental infrastructural improvements and the pressing needs of the private sector. Through this dialogue, we aim to uncover insights that can guide stakeholders in navigating the evolving energy landscape of Nigeria.

Good day, and thank you for joining us. Your recent article on the Nigerian government’s ₦100 billion solar investment generated a lot of interest. To begin, what motivated you to write on this topic?

Mr Damilare Davola: Thank you for having me. As a business analyst with a keen interest in development economics and enterprise sustainability, I’m constantly evaluating how government policies affect the operational environment of small and medium enterprises (SMEs). The recent announcement of a ₦100 billion investment in solar power, with ₦10 billion allocated for the Presidential Villa alone, is a pivotal development. It holds long-term implications for infrastructure, governance priorities, and the private sector—especially SMEs, which are often at the receiving end of inadequate power supply.

Let’s go straight to the heart of it. In your opinion, is this solar investment a positive step?

Mr Damilare Davolat: On the surface, yes—it’s a commendable move. Power instability remains one of the most pressing bottlenecks for productivity in Nigeria. This initiative signals a governmental shift toward renewable energy, which is not just sustainable but increasingly affordable in the long run. However, the issue lies not just in policy intent but in implementation, inclusiveness, and resource allocation. ₦100 billion is a significant figure in an economy where hospitals lack electricity and SMEs struggle with diesel costs. A policy of this magnitude must be inclusive if it is to drive national growth.

What specific impact do you think this solar policy will have on Nigerian SMEs?

Mr Damilare Davola: The potential impact is twofold. On the positive side, if public institutions like ministries, hospitals, and local councils can run more efficiently on solar energy, it can create a ripple effect that stabilizes certain government services SMEs rely on. Furthermore, if the government expands the solar push beyond its institutions, SMEs can enjoy cost savings, improved productivity, and reduced dependence on fossil fuels.

On the flip side, SMEs may feel sidelined if the funds are only applied to elite government enclaves. Already, the ₦10 billion allocation for Aso Rock has raised eyebrows. If not followed with targeted programs for the private sector, especially in the form of financing support or public-private partnerships, the solar policy could further entrench inequality in energy access.

Could you elaborate on the main pros and cons of this policy?

Mr Damilare Davola: Certainly. Let’s start with the pros:

Environmental Sustainability – It reduces Nigeria’s carbon footprint, aligning with global energy transition goals.

Cost Efficiency – Over time, solar power is cheaper than fossil fuel-based alternatives like diesel generators.

Operational Stability for Public Institutions – If successful, it could improve the efficiency of public service delivery.

Demonstration Effect – It sends a signal to the private sector about the viability of solar technology.

Now, the cons:

Exclusion of SMEs – Unless SMEs are included through access to financing or incentives, the initiative benefits a narrow group.

Misallocation Risk – Aso Rock getting ₦10 billion creates a perception of elitism in policy implementation.

Transparency Concerns – Without proper oversight, the funds risk being misused or diverted.

No Clear Policy Linkage to Productive Sectors – Agriculture, healthcare, and manufacturing SMEs still struggle with power. They need inclusion in this plan.

How do you think the government can ensure that SMEs benefit directly from this initiative?

Mr Damilare Davola: The government should adopt a multi-tiered approach:

Dedicated Solar Grants for SMEs: Through institutions like the Bank of Industry (BoI) or Development Bank of Nigeria, earmark funds specifically for SME access to solar energy infrastructure.

Partnership with Solar Companies: Create subsidies or VAT exemptions for solar providers who offer SME packages.

Infrastructure Expansion: Extend the solar roll-out to business hubs and industrial clusters—Aba, Onitsha, Kano, etc.

Policy Reform: Incorporate solar energy adoption into the broader MSME development policies.

Awareness Campaigns: Many SMEs are unaware of existing CBN solar financing interventions. Bridging that knowledge gap is crucial.

You mentioned existing financing structures like those from the CBN and BoI. Are these effective?

Mr Damilare Davola: They are steps in the right direction, but awareness and accessibility remain issues. For instance, the CBN’s Solar Connection Intervention Fund and BoI’s ₦6 billion Solar Energy Fund have low penetration among rural entrepreneurs and artisans. Application processes are often too technical, with collateral requirements many SMEs cannot meet.

Business analysts and consultants must play a role in bridging this gap—by helping SMEs craft bankable proposals, understand repayment structures, and choose the right technologies.

What role do you see business analysts like yourself playing in this transition?

Mr Damilare Davola: A significant one. Business analysts are interpreters between policy and practice. We help demystify data, predict market reactions, and advise SMEs on risk mitigation. For this solar policy, we can:

Conduct feasibility studies tailored to each SME’s needs.

Offer advisory services on ROI for solar investments.

Guide clients on leveraging government and donor grants.

Serve as watchdogs, advocating transparency and inclusivity.

The more we interpret policy in ways SMEs can use, the greater our national development impact.

Lastly, what would your final word be to policymakers, SMEs, and other business analysts reading this?

Mr Damilare Davola: To policymakers: broaden the solar policy to touch every segment of society. Avoid concentrating wealth and power benefits in already privileged spaces.

To SMEs: stay informed, seek professional advice, and explore financing options to embrace the solar transition.

To fellow analysts: let’s go beyond commentary. Let’s help shape action—by supporting implementation, tracking outcomes, and helping SMEs adapt. This moment could redefine Nigeria’s energy economy. Let’s not waste it.

Thank you so much for sharing your insights. We look forward to having you again.

Mr Damilare Davola: Thank you. It’s always a pleasure.