LCCI seeks incentives to drive clean energy adoption

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Energy
October 29, 2026 12:45 am

LCCI President, Leye Kupoluyi

The Lagos Chamber of Commerce and Industry has urged the Federal Government to introduce tax incentives, reduce import costs and provide affordable financing to encourage small and medium-sized enterprises to adopt cleaner energy sources.
The President and Chairman of Council of the LCCI, Engr. Leye Kupoluyi, made the call at the annual conference of the chamber’s Liquefied Natural Gas Group, held at Commerce House, Victoria Island, Lagos, on Monday, under the theme, ‘Empowering SMEs Through Affordable Clean Energy’.
Kupoluyi said the high cost of energy remained a major challenge for Nigerian businesses, undermining productivity, competitiveness and business survival.
He called for tax incentives, accelerated capital allowances and reduced import-related costs for clean energy equipment, battery storage systems, energy-efficient machinery and essential components that are not competitively available locally.
“The government should consider appropriate tax incentives, accelerated capital allowances, and reduced import-related costs for qualifying clean energy equipment, battery storage systems, energy-efficient machinery, and essential components that are not competitively available locally,” he said.
The LCCI president said small and medium-sized enterprises contributed significantly to employment, innovation, local production, entrepreneurship and the development of domestic value chains, but continued to face financial and infrastructure challenges.
“The theme is both timely and strategic. It speaks directly to one of the most pressing challenges confronting Nigerian businesses today: the high cost of energy and its implications for productivity, competitiveness, business survival, and economic growth,” he said.
According to him, unreliable electricity supply had forced many businesses to depend on petrol and diesel generators, exposing them to fluctuating fuel prices, high maintenance costs, equipment breakdowns and production interruptions.Make PUNCH part of your everyday experience.Add us to your Preferred Sources
He said manufacturers, food processors, cold-chain operators, hospitality businesses, technology companies and other energy-intensive enterprises are particularly affected by the challenges.
Kupoluyi also called for collaboration among the government, development finance institutions, commercial banks and private investors to establish dedicated financing schemes for SMEs seeking to switch to cleaner energy sources.
“The high upfront cost of solar systems, battery storage, gas conversion equipment and energy-efficient machinery remains a significant barrier to adoption. Government, development finance institutions, commercial banks and private investors should collaborate to establish dedicated clean energy financing windows for SMEs,” he stated.
He identified natural gas as an opportunity to support industrial development, particularly where it could replace more expensive and less efficient fuels.
According to him, liquefied natural gas, compressed natural gas and other gas-based solutions could support manufacturing businesses and industrial clusters, especially in areas with inadequate electricity supply, provided the necessary infrastructure and affordable distribution systems are available. Ikeja Electric apologises for failing 20-hour power supply target VIDEO: Late Wigwe’s daughter holds traditional wedding in Lagos EFInA urges SMEs to explore funding beyond bank loans
Also speaking at the conference, the Chairperson of the LPG and Downstream Natural Gas Sectoral Group of the LCCI, Jacqueline Addy, said energy costs directly affected businesses’ expenses, profit margins, growth and capacity to create jobs.

She noted that restaurants, bakeries, food vendors, caterers and hospitality operators depended heavily on energy for their daily operations.
Addy said liquefied petroleum gas offered a cleaner and practical alternative to traditional cooking fuels when properly adopted and safely used.
“However, we recognise that the transition to cleaner energy must be supported by affordability, accessibility, awareness, and, above all, safety,” she said.
At the event, the Eko Gas Scheme 3.0 distributed 100 free LPG cylinders, alongside the necessary accessories, to support small businesses in adopting cleaner energy.
According to Addy, the initiative was designed to reduce the initial cost of switching to LPG, improve access to clean energy and encourage safer and more efficient business operations.
About 100 SMEs selected across Lagos State’s 57 local government and local council development benefited from the scheme. The beneficiaries included caterers, roadside akara sellers and other food vendors who depend on cooking energy to run their businesses.
The Chief Commercial Officer of Gas Termination and Distribution Limited, Abubakar Folami, said the scheme was launched by the Lagos State Government in partnership with the LCCI and industry stakeholders to encourage households, roadside food vendors and small businesses to switch from traditional fuels, including firewood, charcoal and kerosene, to LPG.
The Managing Director of Gasavant Africa, Engr. Chukwuemeka Iheme, reaffirmed the company’s commitment to expanding access to cleaner and more affordable energy solutions for small businesses.
He maintained that energy affordability and safety should remain central to Nigeria’s transition to cleaner fuels, adding that initiatives such as the Eko Gas Scheme 3.0 could translate discussions about energy access into practical support for entrepreneurs.
“Small businesses are vital to Nigeria’s economy, but the cost and reliability of energy remain significant challenges to their productivity and growth. At Gasavant Africa, we believe that expanding access to LPG, alongside proper safety education, can help businesses manage operating costs, improve efficiency and adopt cleaner energy practices,” he said.
Iheme added that sustainable clean energy adoption required collaboration among industry operators, government institutions, business associations and local communities. He said Gasavant Africa remained committed to initiatives promoting responsible LPG use, strengthening safety awareness and improving access to energy solutions for Nigerian businesses.

Dare Olawin
Dare Olawin is a journalist at Punch Newspapers with over a decade of reporting experience. He began his career as a community reporter and now covers the energy sector, including oil, gas, electricity, and renewables. Dare’s work reflects hands-on newsroom experience, professional development through workshops and conferences, and a strong commitment to accurate and insightful journalism.

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