The Bank of Industry (BOI) has launched a N1 billion solar energy fund for use by Micro, Small and Medium Enterprises (MSMEs) across the country.

The intervention fund is aimed at providing alternative and renewable energy for small businesses.

Speaking at the event, the acting Managing Director of BoI, Waheed Olagunju said that renewable energy would provide healthy and sustainable alternative to the use of harmful fossil fuels.

Olagunju said the solar project would afford beneficiaries long-term cost saving advantages, especially in the absence of reliable power supply.

He said that the cost of electricity accounted for about 40 per cent of operational expenses for most MSMEs resulting in reduced profit margins, uncompetitive and generally unsustainable ventures.

According to him, many Nigerians and Nigerian businesses that can not afford other alternative energy sources have resorted to the use of electric generators at exorbitant costs.

Reports by Tolu Ajayi