Nigerian businesses lose daily profits by delaying solar shift to PaaS model

Nigerian businesses lose daily profits by delaying solar shift to PaaS model

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247GistMan in Business & Making Money June 15, 2026, 7:51 pm

Nigerian businesses face daily profit losses from volatile diesel costs after prices jumped 30% to over ₦1,700/liter in March-April 2026 amid Middle East tensions and grid instability. Companies sticking with diesel generators while competitors adopt fixed-rate Power-as-a-Service (PaaS) solar are paying a 'Diesel Tax' that compresses margins daily.

The cost of inaction is real: (Current diesel cost per kWh – Fixed PaaS solar cost per kWh) × Daily consumption. As diesel remains volatile while PaaS offers fixed rates, this drain compounds daily across operations—directly reducing EBITDA. PaaS requires zero upfront cost—providers handle installation/maintenance while businesses pay only for consumed watts, keeping capital liquid for core operations.

Waiting for future budget cycles means continuously overpaying for power while energy-optimized rivals gain market share. True resilience requires treating predictable energy as a strategic asset, not an administrative expense. Have you calculated your daily cost of energy delay yet?


SOURCE: https://nairametrics.com/2026/06/15/stop-losing-profit-why-your-business-should-transition-to-solar-energy-now/


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