PwC MSME Survey 2020
What is the biggest cost(s) to your business operations?
兰花
21%
17%
15%
14%
12%
12%
5%
3%
Electricity
Rent
Cost of capital
(power
Employee
costs
Taxes
Transportation Debt servicing
costs
Other
generation)
Source: PwC analysis
PwC MSME Survey 2020
PwC
Electricity accounts for the biggest costs to daily operations.
Nigeria's power sector is overwhelmed by myriad of challenges
ranging from operational inefficiencies to infrastructure deficiencies.
These challenges have culminated in inadequate electricity supply
that has had adverse impact on the business environment in Nigeria;
consequently, contributing to significant economic costs to SME and
economic growth. The International Monetary Fund (IMF) states that
lack of access to reliable electricity costs the Nigerian economy an
estimated USD29 billion a year.
A research conducted by the Centre for Democracy Development
(CDD) and SOAS University of London, revealed that SMEs in
Nigeria get just 1 to 5 hours of electricity in a day, adding that the
huge supply shortfall is 'killing' businesses. Analysing the economic
factor intensity as a result of the shortfall of low electricity supply,
PwC estimates that approximately 1 out of every 7 firm exits the
economy because of this.
June 2020
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