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Revisiting The Electricity Question In Nigeria

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The question as to whether the Nigeria’s tech ecosystem can truly develop without steady power supply has always been agitating my mind.

This question keeps coming up because of the epileptic power supply that has consistently been the lot of the citizens of this country for way over 5 decades now. The epileptic power supply has constantly left most of our small, medium and large scale businesses in Nigeria in dire straits. This is because they power their businesses with generators which run on fuel and this shoots up the operating/running expenses of these businesses.

It is no longer news that many industries in Nigeria have either closed shop and relocated to other countries that have relatively stable electricity or disengage a number of their staff and increased the work load of those remaining in a bid to reduce operating/running cost.

This is happening in a country where we already have a very high rate of unemployment. The news gets worse when the reality stares us in the face that, unless the government, through the NERC and the Discos, Gencos and the Transmission companies gets their acts together and cooperate, coordinate and synergize to give us the much required stable electricity supply, more businesses are likely to die, be irrespective of the field of endeavour.

It is worthy to note that, without steady power supply, there simply cannot be any significant technological advancement or innovation and in the same vein, no section of the power ecosystem, (generation, transmission, distribution, billing, the regulator or what have you), can work effectively and efficiently without inputting modern technology. They are all partners in progress.

In many climes, people in government have come to recognize that stable electricity supply is the fulcrum on which many businesses depend, to enable them deliver optimally at relatively cheaper prices. Electricity is also seen as the chief driver of technological innovations that has given birth to the Internet of Things.

This has now turned the universe into a global village through internet connectivity. The Internet of Things is set to take the world by the storm in the next two or three years’ time, when your household gadgets, such as your refrigerator, electronic doors and gates, Television, Microwaves, etc., will be interconnected.

Without stable electricity, I do not see how we will be able to cope in Nigeria in this regards as connectivity is dependent on the availability of electricity supply.

Today, within the twinkling of an eye, you can transact and close business deals with anyone, anywhere in the world, without leaving the comfort of your home through an internet-connected computer device, powered by electricity.

Technology and its variants of innovations, of which electricity is a major one, I have always maintained, has come to make our daily living a lot easier.

There is no doubt that the high unemployment rate we are presently facing in Nigeria can be drastically reduced with relatively stable supply of electricity.

Many people will find their employment bearing in what is usually called the blue collar job sector of the economy, which is capable of accommodating millions of employable Nigerians. Name it; Welding workshops, Barbing saloons, Hair dressing saloons, Internet Café, Fashion designers, Cold room operators, etc., will all have stable jobs and move away from riding bikes, popularly referred to as Okada, with grave implications to their health, if they have access to stable electricity to run their businesses seamlessly.

Also, and importantly too, manufacturing will once again boom in Nigeria as factories will be able to run their machines at cheaper electricity rates compared to the exorbitant cost of running them presently on diesel generators, if the issue of electricity is fixed. This means that there will be a reduction in the cost of production.

A reduction in the cost of production will drive the prices of produced goods down, thus, making them affordable to the average Nigerian.

Further benefits of fixing the electricity issue in Nigeria is that, as reduction in production costs drives down prices, our products will be able to compete for export, especially, in our immediate African market.

This can, indeed, be the beginning of Nigeria earning serious foreign exchange from exports. Exports earnings can improve the strength of the Naira against stronger currencies like the Dollar and save us from the present foreign exchange imbroglio we find ourselves. Nigerians can then start to breathe a sigh of relieve.

One of the reasons adduced for the increase in electricity tariff is that the Disco’s need to gather more funds to invest in old equipment. One is tempted to ask; what did the Disco’s thought they were buying into when they were bidding for the aspect of PHCN which they bought?

Did they inspect the equipment they were buying at all? Did they price down the old equipment they were buying into when they bought, knowing that they have to invest in better equipment? Why should it now be the electricity consumers that should indirectly be funding the Fixed Asset side of the Balance Sheet of the Disco’s by financing their equipment purchase through the increase in tariffs? All these questions are begging for answers.

The truth is that no nation can be truly economically viable if its electricity sector is in the kind of crisis that ours is in Nigeria. There is the need to really deregulate the electricity sector in Nigeria instead of removing it from the government’s bureaucratic shackles and placing it on the laps of investors with oligarchic tendencies.

The issue of alternative sources of electricity should also not be discountenanced in seeking to solve the electricity crisis in Nigeria. Technology has provided various other options, such as wind, solar and many more. The government should look at each community and see how best they can be helped to benefit from these alternative sources of electricity, thus, by-passing the Discos.

We expect to see positive changes in the direction of improving the supply of electricity with the supply of prepaid meters to every consumer of electricity in the nearest future, otherwise, our Tech ecosystem and other businesses will keep crawling.

CFA is the Founder, www.CFAtech.ng & Co-producer/Presenter,Tech Trends on Channels Television

 

 


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AXA Mansard Empowers Female SMEs with Financial, Digital Skills

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AXA Mansard, a member of AXA has empowered 200 female Small and Medium Enterprises with financial literacy and digital business skills.

In collaboration with SME 100 Africa, the two-day training, which was held in Lagos, is part of AXA’s lined-up programmes to commemorate this year’s International Women’s Day.

Speaking, Olusesan Ogunyooye, Head of Marketing AXA Mansard, said the training was aimed to empower female SME owners with skills to improve business output and position them for the increasing economic opportunities available in an increasingly digital marketplace.

Ogunyooye noted that the move was in line with AXA Mansard’s sustainability agenda, explaining that the company was convinced that support for women through its inclusive protection programmes was pivotal to its purpose of acting for human progress by protecting what matters and its mission of moving from being a payer to a partner.

He further said that focusing on digital skills was important because the company realised the importance of digital skills to the growth of the SME sector in Nigeria and wants to ensure that women were empowered enough to be a consequential part of that growth.

“It’s almost trite to say that SMEs are the engine for economic growth, especially in developing countries like Nigeria, where over 45 million adults are business owners. What needs to be continually discussed is how Nigeria is going to unlock that potential for economic development and how much of that potential will be unlocked by women and for women.”

“For us at AXA Mansard, we are aware that digital will play a major role in unlocking these current opportunities and Nigeria’s economic future. So, to ensure that women are equally represented in unlocking these future potentials, that’s why we have collaborated with SME 100 Africa to support them in developing the required skills”.

“Our choice of digital and financial literacy skills is deliberate. We understand the power of the duo. We understand that helping these SMEs with the skills to attract more customers will be a faster means to empower them.

“We see that they have amazing products and services, but they need to understand how to attract value for themselves by attracting the right customers, and you will agree with me that virtually all customer segments are online in one way or another today.

“So, if we can empower them with digital business skills, we would have helped them with the heavy lifting of trying to find and attract customers”. Ogunyooye explained.

According to him, AXA Mansard believes that for the world to experience progress truly, there must be an equitable distribution of creation and access to opportunities for men and women. This quest for balance informed the SHE for Shield initiative, a women-centred inclusive protection programme of AXA Mansard.

SHE for Shield is a group of initiatives designed for the Nigerian woman. The goal is to see them grow, add value, and help them mitigate risks at every step.

According to the company, research has found that access to health care is one of the most important things to Nigerian women, regardless of their economic segment. They desire to be financially independent, secure, and respected in the community.

 


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IFC Invests in New 4DX Ventures Fund to Support Tech Startups in Africa

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IFC is investing $10.5 million in a new fund by 4DX Ventures, a New York-based venture capital firm focused on supporting early-stage African technology companies across a broad set of sectors, including fintech, e-commerce, edtech, climate tech, and health tech.

IFC’s investment in 4DX Ventures Fund III will come from IFC’s $225 million venture capital platform, which was launched last year to strengthen emerging VC ecosystems and invest in early-stage companies in Africa, the Middle East, Central Asia, and Pakistan.

Africa is among the regions least served by venture capital, receiving just 2% of global venture deal volume in the third quarter of 2023. Access to capital on the continent has been further exacerbated by a slowdown in global venture capital investment.

Tech ecosystems are nascent, or even nonexistent, outside of more established markets such as Egypt, Kenya, Nigeria, Senegal, and South Africa.

“IFC and 4DX Ventures share the commitment to supporting tech entrepreneurs with innovations that will help Africa leapfrog in critical areas such as climate, health care, fintech, e-commerce, and education,” said Walter Baddoo, Co-Founder and General Partner of 4DX Ventures.

“We look forward to partnering with IFC to help promising tech startups build transformative businesses and realize sustainable development impact on the continent.”

4DX’s new fund will invest in companies with tech solutions that can improve productivity, efficiency and competitiveness across Africa. The firm’s first two funds invested in companies such as Egypt-based e-commerce platform MaxAB, an IFC portfolio company; Ghana-based health tech firm mPharma; and Kenya-based B2B e-commerce platform Wasoko, formerly known as Sokowatch.

“By supporting the development of tech ecosystems in emerging markets, IFC’s venture capital platform aims to improve access to key services, boost business competitiveness, and promote job creation through digital transformation,” said Mohamed Gouled, Vice President of Industries at IFC.

“Our investment in venture funds such as 4DX Ventures will help African entrepreneurs access more financing and resources they need to scale tech innovations and bolster sustainable growth across the continent.

In addition to providing capital, IFC will work with 4DX Ventures to implement their environmental and social management system.


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Climate Action Africa Announces CAAF24

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Climate Action Africa (CAA) has announced the inaugural convening of the Climate Action Africa Forum (CAAF24). This international event brings together stakeholders from across the world who drive thought leadership insights on how to encourage collaboration, catalyse actionable solutions, and urge governments, businesses, and individuals to invest in climate-smart initiatives.

The climate-focused event was announced at last week’s Friday international press conference held at the prestigious Transcorp Hilton Abuja. This marks a significant milestone in Africa’s journey towards a sustainable future. A precursor to the upcoming Climate Action Africa Forum scheduled for June 17-19, 2024, at the Landmark Events Centre in Lagos, Nigeria, this press conference brought together leaders, experts, and stakeholders from across the globe. The gathering’s main goal was to discuss the urgent need for sustainable development plans and climate-smart investments in Africa.

Framed by the theme “Green Economies, Brighter Futures: Innovating and Investing in Africa’s Climate-Smart Development,” the international press conference became a vibrant platform for insightful discussions, strategic collaborations, and impactful engagements. It convened an esteemed gathering of leaders, experts, and stakeholders to explore solutions for Africa’s pressing environmental challenges.

The event kicked off with a welcome address by the Executive Director and Co-founder of Climate Action Africa, Grace Mbah, who having announced the commencement of event registration as April 2nd, 2024, made the call for tech-driven solutions and innovations in the fields of emissions reduction, transportation, agriculture, energy, circularity and building and construction to apply to participate in the deal room.

Providing insights to attendees on how innovative approaches and collaborative action is at the heart of CAAF24, she extended an opportunity to like minded organisations who would like to partner by hosting side events and finally, a call for volunteers from across the continent.

“It’s no news that the world stands at a critical juncture, where decisive action is imperative to mitigate the adverse impacts of climate change. Against this backdrop, CAAF24 serves as a pivotal platform for key stakeholders to engage in meaningful discourse, and forge collaborative pathways towards a greener, more sustainable future.

The essence of CAAF lies in its commitment to shaping a climate-resilient Africa through co-creation, innovation, and sustainable investment. Through this initiative, we aim to catalyse solutions that enhance the sustainability and prosperity of the continent’s natural resources, people, and economies,” Grace stated.

During the International Press Conference, distinguished speakers and thought leaders emphasised the urgent need for collective action in tackling Africa’s climate challenges.

They delved into critical topics like renewable energy, sustainable agriculture, biodiversity conservation, and climate finance, offering practical insights and inspiring initiatives.

Jummai Vandu, representing the National Council on Climate Change, expressed optimism about the initiative’s outcomes. “Today’s discussions,” she said, “underscore the urgency of our collective efforts to combat climate change. The National Council believes working together is key to driving meaningful action and creating a more sustainable future for Africa and beyond.”

With the International Press Conference complete, the stage is set for CAAF24. Stakeholders will converge to translate ideas into action, forge partnerships, and drive progress towards a climate-smart Africa.

Mrs. Taiwo Fashipe, Head of Media for the Presidential CNG Initiative (P-CNGi), echoed similar sentiments, stating: “The theme of this year’s Climate Action Africa Forum aligns with our goals, vision, and mission at the Presidential CNG Initiative.

“We look forward to using this platform to advance interest in and investment in greener and cleaner energy sources like CNG.”

Standing at a crucial juncture in Africa’s quest for sustainable development, CAAF24, convened by Climate Action Africa in partnership with the National Council on Climate Change, Channels Media Group, and Founder Institute, emerges as a beacon.

It brings together the private and public sectors, guiding the continent towards a future marked by resilience, prosperity, and environmental stewardship.

 


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