The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has raised alarm over the negative impact of rising energy prices on small businesses across the country. In a recent statement, the agency highlighted how the sharp increase in energy costs is pushing many micro, small, and medium enterprises (MSMEs) to the brink of collapse. This energy crisis is primarily driven by the hike in prices of gas, electricity, and other essential energy sources critical for business operations.

For many small businesses, energy constitutes a significant portion of operational expenses. The sudden price hike has led to reduced profit margins, forcing some to scale back operations or shut down entirely. Entrepreneurs in sectors like manufacturing, food processing, and logistics are particularly hard-hit, as they rely heavily on consistent and affordable energy to sustain their production lines. The ripple effects include job losses, reduced productivity, and declining contributions to the national economy.

SMEDAN is calling on the government to intervene by implementing policies that will stabilize energy prices. Among the proposed measures are subsidies for small businesses, investment in alternative energy sources, and streamlined processes for accessing affordable gas and electricity. The agency emphasized that without immediate action, Nigeria risks losing a significant percentage of its small business sector, which serves as the backbone of the country's economy.

In addition to policy changes, stakeholders have called for collaboration between private energy providers and the government to explore sustainable solutions. Investing in renewable energy sources such as solar and biogas could provide businesses with cost-effective alternatives, reducing their dependence on conventional energy. Advocacy groups have also urged the government to enforce price controls and improve infrastructure to reduce inefficiencies in energy distribution.

The rising energy costs serve as a stark reminder of the challenges facing small businesses in Nigeria. Addressing this issue is not just an economic necessity but also a step toward ensuring that the nation's entrepreneurial spirit continues to thrive despite external pressures. The government's response in the coming months will be crucial in determining the survival and growth of Nigeria's small business community.