Uninterrupted Power Supply and the Tech Ecosystem

One of the most frustrating experiences earliest stage startups would be dealing with at the moment is most likely power supply. This is why many of them use the option of hubs and co-working spaces rather than renting their own office.

In my case, I may have been pretty successful in my craft but one behind-the-scene question is, would the situation have been different if I had not diverted funds meant for a car to acquire an inverter?

Without knowing it then, now I realize that move was the game changer for me, it meant I could stay in the trenches a little longer without the heavy burden of fueling a generator but the reality is that how many startups can truly afford to acquire an inverter especially those who are struggling to survive or reside far from hubs?

In my opinion, there can be no technological advancement or innovation without steady power supply and in the same vein, no power or electricity ecosystem (generation, distribution, billing or what have you) without modern technology - it is absolutely impossible in both cases, they are partners in progress.

The world will be forever grateful to Thomas Edison for Electricity because it became the fulcrum on which many other inventions, chief of which is the technology revolution (that has now turned the world into a global village) grew. Today, within the twinkling of an eye, you can transact and close business deals with anyone, anywhere in the world, without leaving the comfort of your home or office and its all thanks to technology.

Beyond what we now call the startup ecosystem, is the SME sector already employing millions of people and has the capacity to accommodate a lot more from Welding workshops, Barbing saloons, Hair dressing saloons, Internet Café, Fashion designers, Cold room operators and lots more.

All of these guys will contribute to economic growth one way or the other, if they have access to stable power supply to run their businesses seamlessly.

Also, and importantly too, manufacturing will once again boom in Nigeria as factories will be able to run their machines at cheaper electricity rates compared to the exorbitant cost of running them presently on diesel generators. This means that there will be a reduction in the cost of production.

A reduction in the cost of production will drive the prices of produced goods down, thus, making them affordable to the average Nigerian.

Further benefits of fixing the electricity issue in Nigeria is that, as reduction in production costs drives down prices, our products will be able to compete for export, especially in our immediate African market. This can, indeed, be the beginning of Nigeria earning serious foreign exchange from exports.

Exports earnings can improve the strength of the Naira against stronger currencies like the Dollar and save us from the present foreign exchange imbroglio we find ourselves.

From what I understand, those who invested in the power sector are more or less cash-strapped and therefore not able to invest in the process of replacing all the rusty and old equipments. One is tempted to ask; what did the Disco's think they were buying into when they were bidding for the aspect of PHCN which they bought? Did they inspect the equipment they were buying at all? Did they price down the old equipment they were buying into when they bought, knowing that they have to invest in better equipment? Why should it now be the electricity consumers that should indirectly be funding the Fixed Asset side of the Balance Sheet of the Disco's by financing their equipment purchase through the continued estimated billing strategy and proposed increase in tariffs? All these questions are begging for answers but I'd leave them for another day.

The truth is that no nation can be truly economically viable if its electricity sector is in the kind of crisis that ours is. I believe laws backing the electricity sector has to be knocked down further allowing more businesses generate and sell excess power to their neighbourhoods. I hear from the grapevine of a Nigerian ranch owner in a particular State in the US, who, not only generates electricity for his entire ranch estate, but sells the excess generation to the State! No wonder the difference is clear with the standard of living over there, compared to what obtains here. The government can take a cue from this and allow any of our brilliant Engineers who is capable to generate electricity have a soft landing. The more, the merrier.

The issue of alternative sources of electricity should also not be discountenanced in seeking to solve the electricity crisis in Nigeria. Technology has provided various other options, such as wind, solar and many more. The government should look at each community and see how best they can be helped to benefit from these alternative sources of electricity, thus, by-passing the Discos.

I expect to see positive changes in the direction of improving the supply of electricity, albeit with the supply of preferable, prepaid (smart) meters, in the nearest future otherwise our Tech ecosystem and other businesses will crawl forever.

So the question is, can we develop our tech ecosystem without uninterrupted power supply?

Yes, I know power may have improved considerably in certain parts of the country but how are we sure it is not a fluke brought about by the rainy season? If you are old enough, then you may have heard this excuse every now and again. Only time will tell though!

CFA is the Founder, www.techsmart.ng and Co-producer/Presenter, Tech Trends on Channels Television