By Krzysztof Lokaja

Africa’s cement industry is expanding quickly, driven by urbanisation, infrastructure investment and rising demand for housing. Yet behind this growth lies a persistent operational challenge: reliable and affordable access to electricity.

Cement production is energy-intensive and highly sensitive to power interruptions. Kilns operate continuously, and sudden shutdowns disrupt production and increase costs. In many African markets, however, limited access to grid power and volatile energy prices leave many cement producers with no other choice but to invest in power generation capabilities on-site.

In this context, the question facing the cement industry is no longer whether to generate its own power; they often must, but which technology provides the most practical and resilient solution to do so.

The technological options typically envisaged include open-cycle gas turbines, reciprocating gas engines and sometimes even coal-fired steam turbines. But only one of these technologies offers the optimal balance of flexibility, reliability and affordability suited to highly demanding cement operations.

Flexibility in matching industrial power demand

An essential factor to take into consideration when assessing options is the way power demand fluctuates within cement plants. Although production processes often run continuously, electricity demand varies depending on grinding operations, maintenance cycles and seasonal production patterns.

By design, engine power plants are highly effective at adapting to these changing demand profiles since plant operators can simply change power output from each engine between 10% and 100% within minutes. Because they are composed of multiple engines operating in parallel, independent units can even be switched on or off to match real-time demand.

More importantly, flexible engines can operate stably at very low loads while maintaining high efficiency, giving operators a responsive tool for managing fluctuating power requirements. This capability allows the power plant to maintain very high electrical efficiency across a wide range of output levels.

This operational flexibility is also of paramount importance to support the integration of intermittent renewable energy in microgrids. As the cement industry increasingly turns to solar and wind to lower its carbon emission footprint, matching them with flexible engine capacity will provide the critical dispatch dependability needed in hybrid power plant configurations.

Open-cycle gas turbines, on the other hand, significantly lose efficiency when operating below full capacity. For industrial users that rarely operate at a constant full load, this translates into higher long-term fuel consumption, offsetting the turbines’ lower up-front cost. In a sector where energy costs represent a significant share of operating expenses, differences in efficiency over time will outweigh any initial capital cost advantages.

Unlike engines that can be turned on and off multiple times during a day and require no minimum up and down time, turbines need to operate constantly to avoid thermal stresses and, therefore, increased maintenance costs. This lack of operational flexibility will significantly undermine the efficiency, but also severely limit the performance of renewables in hybrid microgrid configurations.

Reliability and scalability as baseline requirements

For cement plants, electricity supply must be dependable above all else. Reciprocating engine power plants typically achieve availability rates over 98 per cent, making them well-suited to industrial environments where access to energy must always be dependable.

One reason for this reliability lies in the modular nature of engine-based plants. Unlike turbine power plants, their configuration allows individual units to be serviced without shutting down the entire plant. Servicing can be planned and carried out on site while the remaining engines continue to operate. Spare parts planning, local technical support and straightforward servicing procedures also help keep downtime to a minimum.

The modular structure of engine power plants also allows for new generation capacity to be expanded gradually. As cement plants increase production, additional generating units can be installed without redesigning the entire power system, whilst avoiding the need for oversized plants. This structural flexibility reduces investment risk, allowing power infrastructure to grow alongside industrial demand.

In this regard, engine power plants offer a degree of adaptability that is difficult to achieve with other generation technologies.

Coal, a cheap option with considerable downsides

Coal-fired power plants are sometimes considered as an alternative for captive power in certain countries, particularly where cheap coal resources are locally available. However, coal-based generation presents its own set of challenges for industrial users.

Much like open-cycle gas turbines, coal plants are designed primarily for steady, continuous operation and are less suited to environments where power output must adjust frequently and rapidly. Startup times can extend to many hours, and maintenance often requires large sections of the plant to be taken offline. This lack of flexibility negatively impacts project economics.

Environmental considerations also represent a major downside for coal. Financing institutions, investors and owners are paying closer attention to emissions profiles and long-term climate risks. As a result, coal-based power plants can encounter significant barriers to financing.

Preparing for an evolving energy landscape

Energy systems across Africa are evolving, with new gas infrastructure, renewable energy projects and volatile fuel markets reshaping the landscape. Industrial power solutions, therefore, need to be able to accommodate these transformations.

Of course, no single power technology is universally optimal. Yet, when sustainability, scalability, reliability, operational flexibility and long-term efficiency are considered together, engine-based power plants present a compelling option for many cement producers across the continent.

Krzysztof Lokaj is the Africa Development Manager for Wärtsilä Energy

By Ivie Abiamuwe

Nigeria’s economic resilience has historically been driven by its nano and micro-enterprises, ranging from roadside kiosks to rapidly growing digital vendors. These businesses form a critical component of economic activity, employment generation, and community stability across the country.

These nano and micro-businesses form the bedrock of the country’s economic drive. According to the National Bureau of Statistics (NBS), Micro, Small, and Medium Enterprises (MSMEs) account for approximately 96% of businesses in Nigeria, contributing nearly 48% to the national GDP and employing over 80% of the workforce. Yet, despite their fundamental importance, many of these businesses operate without a formal financial structure or long-term strategic planning.

In 2026, this informal model is becoming increasingly unsustainable. As  Nigeria continues to pursue broader economic ambitions, the transition from subsistence operations to strategic participation in the digital value chain is essential. Financial readiness has moved from being a social choice to a macroeconomic imperative.

A common misconception is that nano-SMEs are too small to integrate into formal financial systems. In reality, their collective impact is the primary engine of community stability. However, many operate with limited financial visibility, mixing personal and business finances and lacking the verifiable transaction histories required for credit assessments by financial institutions.

Businesses operating outside formal financial systems may face limitations in accessing structured financing and growth opportunities

Financial readiness begins with digital visibility. In today’s economy, businesses operating outside formal financial systems may face limitations in accessing structured financing and growth opportunities. Digital transactions and traceable expenses form a “financial footprint.” FairMoney Microfinance Bank provides digital financial solutions designed to support entrepreneurs in transitioning from informal cash-based operations to more structured financial practices.

The issue of credit remains a significant hurdle. While many entrepreneurs avoid formal borrowing, credit, when used responsibly, is a strategic growth tool rather than a liability. Building a track record of disciplined repayment increases trust and may improve access to financing opportunities, subject to applicable risk assessment and eligibility requirements.

Access to responsible and appropriately structured financial solutions can help small businesses manage short-term liquidity pressures, support inventory cycles, and improve operational resilience, subject to applicable terms and conditions. For longer-term scaling, fixed-term products allow entrepreneurs to lock away funds and accrue interest at applicable rates, supporting financial resilience over time.

One of the most persistent challenges facing nano-SMEs is the inability to separate personal and business finances. Without this separation, it is nearly impossible to determine if a business is truly profitable. Establishing a dedicated business account is a critical step toward the data-driven decision-making required to scale.

The Nigerian entrepreneur is globally recognised for resilience, but in a tightening regulatory framework, survival alone is no longer sufficient. The future belongs to businesses that are structured and financially prepared.

Financial readiness is the bridge between subsistence entrepreneurship and sustainable value creation. It transforms daily income into a system for building long-term capital. Nigeria does not lack entrepreneurial capacity; what is required is a stronger financial and structural foundation capable of translating that entrepreneurial energy into sustainable economic growth.  For nano-SMEs, bridging the digital and structural gap is no longer optional—it is essential for long-term growth, resilience, and participation in Nigeria’s evolving economy.

Ivie Abiamuwe is the Director of Business Banking at FairMoney Business

By Sani Abdulrazak, PhD

It is a boom season for Nigerian Governors; at no time before have they had it this much. Huge sums of money are being allocated to them every month. To whom much is given, they say, much is expected. What are the visible things they have put in place commensurate with the allocations they receive? How do we hold them accountable for such?

Nigeria today faces one of the widest electricity supply gaps in the world. Despite having an installed generation capacity of over 13,000 megawatts, the country still struggles to generate and distribute between 4,000 and 5,500 megawatts on most days for a population exceeding 220 million people. Experts estimate that Nigeria requires at least 30,000 megawatts to enjoy stable and functional electricity, while industrial economies of comparable size generate far more. Recent reports from the Nigerian Electricity Regulatory Commission and industry operators revealed that many power plants operate below 40 per cent capacity due to gas shortages, poor infrastructure, transmission bottlenecks, and weak investment. The consequences are devastating. Small businesses spend billions annually on diesel and petrol generators. Manufacturers relocate to neighbouring countries with better energy systems. Investors avoid regions where production costs are inflated by unstable electricity. According to several business and energy reports, unreliable electricity continues to cost Nigeria billions of dollars yearly in lost productivity, collapsed businesses, unemployment, and reduced foreign direct investment. In Northern Nigeria, especially, where industrialisation is already fragile, unstable electricity has become a direct enemy of economic growth, security, and prosperity.

Nothing will boost and improve our local economy, especially here in Northern Nigeria, like the provision of stable electricity. Recently, the president smartly threw the ball into our Governors’ court by signing the Electricity Act. The Electricity Act by Bola Ahmed Tinubu gave states the power to decentralise electricity. We have seen states like Abia State, Lagos State and Ogun State grabbing the opportunity with both hands in order to boost the local economy.

It left me wondering what Northern states are doing about this. Are our people aware of this great opportunity to compel our Northern Governors to provide stable electricity to us? Or are they so consumed with who occupies what office? Or “Falle nawa ne”? Why are our Northern know-it-all  Analysts and intellectuals silent about this now, only to hammer on the same issue years later when the opportunity is probably no longer there? Will our traditional rulers save us by echoing it into our leaders’ ears?

Electricity is no longer merely a social amenity; it is the backbone of modern civilisation. Every thriving economy is powered first by energy before politics, rhetoric, or propaganda. Stable electricity determines whether factories operate efficiently, whether hospitals can preserve lives, whether schools can provide quality learning environments, whether technology hubs can emerge, and whether local entrepreneurs can compete globally. Nations do not industrialise in darkness. History has repeatedly shown that economic revolutions are built upon reliable energy systems. From China to India, from South Korea to Rwanda, serious governments understood that a constant electricity supply is the oxygen of development.

Sadly, Northern Nigeria still behaves as though electricity is a luxury rather than an economic necessity. In many parts of the region, communities spend more time discussing political appointments and ethnic calculations than discussing energy policy, industrial development, or economic competitiveness. Yet, no serious investor will establish industries where electricity remains uncertain for most hours of the day. No meaningful manufacturing revolution can occur where generators roar louder than factories. Our youths cannot become globally competitive in digital innovation when power outages interrupt learning, research, and productivity every few hours.

What makes the current moment even more painful is that the constitutional and legal opportunity now exists for states to take charge of their electricity future. The decentralisation enabled by the Electricity Act allows states to generate, transmit, and distribute electricity independently under their own regulatory frameworks. This means governors can no longer endlessly blame Abuja for every darkness their people endure. The era of absolute dependence on the national grid is gradually fading. States willing to think ahead can establish independent power projects, attract private investors, support renewable energy initiatives, and create regional energy markets capable of transforming their economies.

Already, signs of this new direction are emerging. Lagos State has moved aggressively toward controlling its electricity market and attracting independent suppliers. Energy reforms and localised agreements are being pursued to reduce dependence on the unstable national grid and improve supply to businesses and residents.  Other states are beginning to recognise that power supply is no longer solely the responsibility of the Federal Government. The question now is whether Northern states will rise to the occasion or continue watching from the sidelines while others move ahead economically.

Even though the “fabled” Northern elites and elders are still struggling to define what regional development is, let alone develop a realistic framework and awareness about it, we would be grateful if they could lend a hand in the actualisation of a stable power supply, the stream that waters the root of development.

Kaduna State, for example, has a Governor amongst Governors, a serving Speaker of the Federal House of Representatives, and two senior, powerful ministers. I hope, pray, and expect Kaduna State to take the lead in the North in providing a stable, uninterrupted power supply to its people. Kaduna possesses the intellectual capacity, political influence, industrial history, and strategic importance to become the energy model for Northern Nigeria. If properly harnessed, stable electricity in Kaduna alone could revive industries, empower small businesses, strengthen agriculture processing, create jobs for thousands of youths, and attract investors back into the state.

Northern Nigeria cannot continue to lament insecurity, poverty, unemployment, and underdevelopment while ignoring one of the foundational pillars of economic transformation. Stable electricity will not solve every problem overnight, but without it, many other solutions will remain ineffective. We must begin to ask tougher questions of those entrusted with public resources. Citizens must move beyond political sentiments and demand measurable development. Governors who receive enormous allocations monthly must show visible investments in energy infrastructure, industrial expansion, and economic productivity.

The future belongs to regions that understand that development is deliberate, not accidental. We can no longer afford leadership without vision or citizens without demands. The opportunity is here. The law is now favourable. The resources are available. What remains is political will, public pressure, and leadership that understands that darkness has never built any civilisation.

Long live the Federal Republic of Nigeria.

Sani Abdulrazak writes from Ahmadu Bello University, Zaria and can be reached via email at [email protected]