Operating Cost Reduction: SMEDAN, UNDP Unveil Solar-powered Garment Hub

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in collaboration with the United Nations Development Programme (UNDP), has launched a solar-powered garment-making centre aimed at reducing business costs and promoting clean energy for small and medium enterprises (SMEs).

The facility, located in Abuja, provides SMEs with free access to modern garment-making equipment, eliminating the burden of power costs, machine purchases, and maintenance. The centre is powered by 254 locally manufactured solar panels, generating 240 kVA, ensuring sustainable and uninterrupted energy supply.

Speaking at the launch, Charles Odii, director-general, SMEDAN, highlighted the economic challenges faced by small businesses due to rising costs. He emphasised that the initiative is designed to alleviate these pressures by offering SMEs a cost-effective space to work and scale their businesses.

“Since President Bola Ahmed Tinubu came into power, some policies have increased the cost of doing business for small enterprises. What we are doing today is reducing that cost. Small businesses can book a machine here, work for free, and not worry about power, machine purchases, or maintenance,” Odii said.

According to him, the centre not only provides production facilities but also offers warehousing and distribution support. He noted that SMEDAN has negotiated partnerships with NIPOST and God Is Good Logistics, offering SMEs discounted distribution rates of 15 per cent and 20 per cent respectively, to enable seamless delivery of finished products across Nigeria.

The director-general explained further that the solar-powered garment-making centre is part of a broader strategy to boost Nigeria’s industrial and employment sectors. The initiative has already been launched in Katsina and Osun States, with plans to replicate the model across all 36 states and the Federal Capital Territory (FCT).

Odii also welcomed senators and members of the National Assembly who witnessed the project firsthand with the hope of expanding the initiative to their respective senatorial districts.

“If it works here, it can work anywhere. We want every senatorial district to have similar facilities to boost employment and productivity,” he stated.

The centre is equipped with 120 machines, each capable of employing at least five people, potentially creating around 700 direct and indirect jobs daily.

Resident representative of UNDP in Nigeria, Elsie Gyekyewaa Attafuah, commended the partnership with the Nigerian government, stressing the role of SMEs as the backbone of the nation’s economy.

She also emphasised the potential of such initiatives to position Nigeria competitively within the African Continental Free Trade Area (AfCFTA), a market of 1.4 billion people, with SMEs playing a critical role in expanding trade opportunities.

“Nigeria has 40 million micro, small, and medium-scale enterprises that contribute to GDP and job creation. By providing sustainable energy, we are enabling these businesses to thrive,” Attafuah stated.

Attafuah also said that UNDP is working on additional initiatives to support innovation and entrepreneurship in Nigeria. Under the Timbuktu Initiative, she noted that the organisation plans to invest $1 billion to support 10,000 startups across Africa.

She added that plans are also underway to establish university-based innovation hubs in Nigerian institutions like the University of Lagos and Ahmadu Bello University, Zaria, where young entrepreneurs can access advanced equipment for prototyping and production.

The UNDP representative also mentioned that community innovation centers, or makerspaces, are being developed to provide opportunities for individuals outside the university system to bring their business ideas to life.

On their part, National Union of Textile, Garment, and Tailoring Workers of Nigeria (NUTGTWN) called for the expansion of this initiative to other key cities like Kano, which has a large tailoring industry and market potential.

NUTGTWN representative, Auwalu Abdullahi, emphasised that extending the project to Kano and other industrial hubs would further strengthen Nigeria’s economy, create more jobs, and empower thousands of tailors.

“If this initiative reaches all 36 states, it will significantly boost Nigeria’s economy. We urge UNDP and SMEDAN to replicate this model nationwide,” he said.

He said that the launch of the solar-powered garment-making centre marks a significant step in Nigeria’s efforts to support SMEs, reduce unemployment, and promote clean energy. According to him, with plans for national expansion, the initiative has the potential to transform the garment industry, enhance local production, and drive economic growth.