- Businesses in Nigeria’s C&I sectors are facing unsustainable energy costs due to unreliable grid supply and rising diesel prices, prompting a strategic shift in energy planning
- Starsight Energy’s Power-as-a-Service (PaaS) model offers a resilient, cost-predictable solution by integrating solar, battery storage, and backup systems, removing the burden of energy system ownership
- A recent poll shows 39% of stakeholders prioritize uninterrupted power, 33% seek affordability and savings, and 28% are driven by ESG compliance, underscoring the urgency for smarter energy strategies
If you are involved in Nigeria’s Commercial and Industrial (C&I) sectors, you understand the challenges businesses face.
In a business environment where resilience is crucial, the unreliable national power grid and the rising cost of diesel are not merely inconveniences; they pose serious threats to the sustainability and growth of businesses.
For players in these sectors, from manufacturing to logistics, the reality is apparent.
You often pay more for inconsistent power, incurring hidden costs such as downtime, generator maintenance, and fuel logistics. This new reality should force a fundamental rethink of your energy strategy.
The Business Pulse: Key Drivers for Energy Strategy
Our recent public poll among business stakeholders highlighted their top concerns regarding their energy needs, revealing the clear motivations driving a shift towards a steady energy supply that allows for a more sustainable business model.
A resounding 39% of respondents cited the ongoing need for a consistent and uninterrupted energy supply, particularly in regions with high grid costs and frequent outages.
Meanwhile, 33% emphasized the importance of affordability and long-term savings in their transition to sustainable solutions, and 28% identified the growing pressure to meet global ESG standards as a significant priority.
Beyond the Bill: The True Cost of Unreliable Power
The financial burden of unstable power supply extends far beyond the direct costs of electricity bills and diesel. Nigerian businesses are facing a confluence of economic pressures, including a stubbornly high inflation rate, macroeconomic instability, and increasing compliance costs.
While the National Bureau of Statistics (NBS) reports that the annual inflation rate had eased from 33.4% in July 2024 to 21.88% in July this year, this rate remains considerably high and continues to erode the purchasing power of businesses and consumers.
For energy-intensive sectors such as agro-processing, manufacturing, and large-scale warehousing, these factors erode profit margins and make long-term financial planning more challenging than ever. As Idris Muhammed, West Africa Commercial Director, Starsight Energy, stated, “The cumulative effect of these challenges is that the old way of doing business is simply not sustainable. We are seeing an energy crisis that is not just a problem, but a catalyst for change.”
Data illustrates this pain point with stark clarity. According to the Nigerian Electricity Regulatory Commission (NERC), recent tariff adjustments have resulted in a significant increase for Band A customers. For a typical C&I company, consuming around 950,000 kWh per month, this translates into a staggering monthly increase that can add millions to operational expenses.
Furthermore, the average price of diesel has surged by approximately 29.72% in the past year, with prices reaching an average of N1,789.45 per litre in July 2025, according to the National Bureau of Statistics. The cumulative effect of these costs is an unviable business model.
A Multi-Faceted Approach to Energy Security
The opportunity to escape this vicious cycle is clear, but the solution requires more than just a single alternative. The key is a sophisticated, multi-faceted approach to energy management. As Idris Muhammed noted, “We have seen that the best energy plans are now comprehensive. By combining multiple technologies, at Starsight Energy, we provide our clients with an integrated solution that gives them the power, security, and cost predictability they need to thrive in this new reality.”
Power-as-a-Service (PaaS): The Modern Business Model
One of our most transformative solutions is the Power-as-a-Service (PaaS) model. This approach fundamentally shifts the dynamic of energy consumption by removing the burden of ownership from the client.
Under the Starsight Energy PaaS model, the service provider assumes responsibility for financing, installation, operation, and maintenance of the energy system.
The client simply pays a fixed, monthly fee freeing up capital and internal resources for their core business. This model offers a predictable and cost-effective energy solution, enabling businesses to regain control of their budgets and focus on innovation and growth.
To achieve proper energy security, the solution lies in a model that guarantees resilience and an uninterrupted supply. This is where the Power-as-a-Service (PaaS) model could be a viable approach. This involves intelligently combining multiple power sources, such as solar, battery storage, and a reliable backup like the national grid or a generator, into a single, integrated system.
This ensures that a business is never reliant on a single source of power. For example, the system can draw from solar during the day, switch to battery storage at night or during grid outages and use a generator only as a last resort. “The key to true reliability isn’t a bigger generator; it’s a smarter system,” said Idris Muhammed. “Our model provides the peace of mind that comes from knowing your operations are protected against any single point of failure.”
This approach maximises cost savings while eliminating the risk of downtime, providing a powerful hedge against a volatile energy landscape.
Partnering for a Resilient Future
For project sponsors and owners alike, the opportunity to escape the cycle of unreliable and costly power is clear. The key is to move beyond the traditional models and engage with an experienced energy partner to explore a comprehensive solution tailored to their specific operational and strategic needs.
This is where Starsight Energy comes in, providing the crucial first step toward building a more resilient, sustainable, and profitable future. By adopting advanced models like the Power-as-a-Service (PaaS) model, businesses can not only stabilise their operations but also unlock new avenues for growth and competitiveness. This is more than a simple transaction; it’s a strategic partnership in building a future where your business is insulated from volatility, powered by innovation, and positioned for enduring success.
About Starsight Energy
The Starsight Energy Africa Group is an Africa-focused pure-play commercial and industrial (“C&I”) renewable energy service provider covering the full scope of C&I projects, from rooftop projects to large-scale corporate Power Purchase Agreement (“PPA”) backed projects, including power-as-a-service and cooling-as-a-service.
It provides carbon reduction, power security and cost savings to blue-chip clients in several key economic sectors, including agro-processing, education, financial services, healthcare, manufacturing and data storage.
The company’s presence spans three key geographical hubs (Southern, Western and Eastern Africa) with operations in Nigeria, South Africa, Ghana, Kenya, Namibia, Tanzania and Uganda. Starsight Energy’s primary objective is to offer complete solar solutions at no upfront cost, enabling its clients to reduce their energy expenses, enhance energy efficiency, and reduce their carbon footprint.
For more information about Starsight Energy and the company’s commitment to sustainable energy solutions, visit the website at www.starsightenergy.com or email info@starsightenergy.com.
Media Enquiries: Marketing & Communications Email: marketing@starsightenergy.com
