Reliable Power for Business Growth
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has partnered with the United Nations Development Programme (UNDP) to launch a solar-powered garment centre in Abuja, the Federal Capital Territory (FCT). This key initiative is designed to reduce business costs for small and medium enterprises (SMEs) while promoting clean energy.
The new facility offers fashion entrepreneurs free access to modern garment-making equipment, removing significant barriers to growth.
The garment centre is powered by 254 locally manufactured solar panels that generate 240 kVA. This provides an uninterrupted, cost-effective power supply, eliminating the financial burden of electricity bills, machine purchases, and maintenance for SMEs. With this setup, businesses can operate efficiently without the usual challenges of unreliable power.
During the launch, SMEDAN’s Director-General, Charles Odii, highlighted the economic struggles facing small businesses. He noted that rising costs have made it difficult for many entrepreneurs to scale their operations, and this new centre offers a direct solution. “Small businesses can book a machine, work for free, and not worry about power, machine purchases, or maintenance,” he said.
Solar-Powered Garment Centre: Boosting Production and Distribution
Beyond production facilities, the solar-powered garment centre provides crucial warehousing and distribution support. SMEDAN has secured partnerships with NIPOST and God Is Good Logistics to offer SMEs discounted shipping rates of 15% and 20% respectively. This arrangement ensures that finished products can be delivered efficiently across Nigeria.
The centre is equipped with 120 high-quality garment machines, each with the capacity to employ at least five people. This setup is expected to create approximately 700 direct and indirect jobs daily, boosting employment and productivity in Nigeria’s garment industry.
This FCT solar hub is part of a broader strategy to expand similar centres nationwide. SMEDAN has already launched initiatives in Katsina and Osun States, with the goal of establishing these hubs across all 36 states and the Federal Capital Territory (FCT).
Odii welcomed senators and members of the National Assembly at the event, encouraging them to support the initiative’s expansion in their respective districts. “If it works here, it can work anywhere,” he said. “We want every senatorial district to have similar facilities to boost employment and productivity.”
UNDP’s Commitment to SMEs
Elsie Gyekyewaa Attafuah, UNDP’s Resident Representative in Nigeria, praised the partnership with the Nigerian government. She emphasised that SMEs form the backbone of Nigeria’s economy and need continuous support to thrive.
“Nigeria has 40 million micro, small, and medium-scale enterprises that contribute to GDP and job creation,” Attafuah said. “By providing sustainable energy, we are enabling these businesses to thrive.”
She also noted that the initiative positions Nigeria competitively within the African Continental Free Trade Area (AfCFTA), which has a market of 1.4 billion people. SMEs will be key to expanding trade opportunities within this powerful economic bloc.
Attafuah announced that UNDP plans to invest $1 billion in supporting 10,000 startups across Africa through the Timbuktu Initiative. She also revealed plans to establish innovation hubs in Nigerian universities, including the University of Lagos and Ahmadu Bello University, Zaria. These hubs will provide students and young entrepreneurs with advanced equipment for prototyping and production.
Calls for Nationwide Expansion
The National Union of Textile, Garment, and Tailoring Workers of Nigeria (NUTGTWN) has urged SMEDAN and UNDP to expand this initiative to other key cities, such as Kano. Auwalu Abdullahi, a representative of NUTGTWN, noted that Kano has a large tailoring industry with significant market potential.
“If this initiative reaches all 36 states, it will significantly boost Nigeria’s economy,” he said. “We urge UNDP and SMEDAN to replicate this model nationwide.”
Abdullahi stressed that expanding the project to industrial hubs would create more jobs and empower thousands of tailors. He believes this step could strengthen Nigeria’s economy by enhancing local production and reducing unemployment.
The solar-powered garment centre marks a significant step in Nigeria’s drive to support SMEs and promote clean energy. By providing a sustainable business environment, it enables entrepreneurs to grow while reducing their carbon footprints. With plans for national expansion, the initiative has the potential to transform the garment industry, boost local production, and strengthen Nigeria’s position in the global fashion market.
