The Lagos Chamber of Commerce and Industry (LCCI) has called for affordable financing, improved gas distribution infrastructure and consistent energy policies to help small businesses reduce operating costs amid Nigeria’s persistent energy challenges.

The chamber said high energy costs and unreliable electricity supply continued to constrain the productivity and competitiveness of small and medium-sized enterprises (SMEs), many of which rely on petrol and diesel generators to sustain operations.

Speaking at the LCCI Eko Gas Scheme 3.0 programme, themed: “Empowering SMEs Through Affordable Clean Energy,” in Lagos, President and Chairman of Council of the LCCI, Leye Kupoluyi, urged the government, financial institutions and private investors to establish dedicated financing schemes to help businesses adopt cleaner and more affordable energy alternatives.

Kupoluyi said the high upfront costs of solar systems, battery storage, gas conversion equipment and energy-efficient machinery remained a major barrier to adoption. He called for low-cost loans, targeted fiscal incentives and investment in gas processing, transportation, storage and distribution networks.

He also advocated decentralised power solutions, including industrial mini-grids, embedded generation and shared energy facilities, arguing that the national grid alone could not immediately meet the energy requirements of businesses across the country.

“The ultimate objective is not simply to promote a particular energy source, but to reduce the total cost of energy while improving reliability and reducing harmful emissions,” he said.

The programme, organised by the LCCI LPG and Downstream Natural Gas Group, is providing 100 free liquefied petroleum gas (LPG) cylinders and accessories to beneficiaries to reduce the initial cost of switching to cleaner cooking energy.

Managing Director of Gasavant Africa, Chukwuemeka Iheme, said expanding access to LPG, alongside proper safety education, could help small businesses reduce operating costs, improve efficiency and adopt cleaner energy practices. He said the scheme offered an opportunity to translate discussions about energy access into practical support for entrepreneurs, particularly food vendors and other small businesses that depend on reliable and affordable energy.

Iheme stressed that sustainable adoption of cleaner energy required collaboration among industry operators, government institutions, business associations and local communities. He reaffirmed Gasavant Africa’s commitment to supporting initiatives that promote responsible LPG use, strengthen safety awareness and improve access to energy solutions suited to the needs of Nigerian businesses.

The scheme’s organisers said they intended to sustain the initiative through periodic distributions and engagement with businesses across Lagos’s 57 local government and local council development areas.

However, the wider challenge remained how to make cleaner energy accessible beyond limited beneficiary groups. For businesses facing high operating costs, the long-term impact will depend not only on the availability of free cylinders but also on affordable refills, reliable supply, access to financing and the safe use of equipment.

Keynote speaker and Chief Commercial Officer of Gas Terminalling and Distribution Limited, Abubakar Folami, said practical experience from previous phases of the initiative showed that access to equipment, safety education and proper monitoring were necessary to encourage sustained adoption.

Folami said the earlier distribution of 20,000 cylinders across Lagos State had exposed a major weakness, as organisers could not adequately track their use or determine whether the equipment reached and benefited the intended users.

He said the programme subsequently shifted towards smaller businesses, including roadside food vendors, with an emphasis on monitoring usage and gathering feedback to assess its impact. According to him, the scheme’s findings informed efforts to improve subsequent phases.

Folami cited a bakery business owner who switched from petrol-powered equipment to LPG and subsequently encouraged other operators in the trade to follow suit. He said such decisions could have wider employment implications because small businesses support livelihoods beyond their owners.

According to him, switching from petrol or diesel to gas-based alternatives could reduce energy expenses by between 35 and 50 per cent, although the actual savings would depend on the equipment, fuel prices and pattern of use.

Chairperson of the LCCI LPG and Downstream Natural Gas Group, Mrs Jacqueline Addy, said affordability must be matched with safety awareness, appropriate equipment, proper ventilation, safe storage and regular inspection of gas installations. She urged beneficiaries to apply the safety guidance provided during the programme and share the knowledge with employees and other operators.