Financial Energy Review
……by Ben Ndubuwa…….
Over 6,500 local and international investors and exhibitors have registered to participate in the forthcoming Nigeria Energy Exhibition and Conference slated for 15th to 17th October, 2024 despite the current forex volatility being faced by Nigerian businesses.
The Exhibition Director, Nigeria Energy/Africa Energy Expo, Ade Yesufu, said this year’s participation is huge and impressive despite the financial burden imposed by the volatile exchange rate, which has skyrocketed since February 2023.
“Before the 2023 election, the exchange rate was N350 to $1. By February 2024, it had risen to around N1,000 to $1. This has severely impacted local businesses, which are now struggling to afford participation in our exhibition due to the increased costs.” Yesufu said.
However, Yesufu pointed out during a press briefing in Lagos that the Nigeria Energy event has been on the rise with more international exhibitors and local companies. The cost of key components, such as venue rentals and logistics, are often billed in U.S. dollars. For instance, building a marquee to accommodate more exhibitors this year cost the organizers an additional $80,000.
“Our aim has always been to maintain a balance between international and local exhibitors, targeting a 60-40 split. However, the current financial landscape means fewer local businesses can afford to showcase their products. In 2019, companies paid us N350 to the dollar, but now they face rates upwards of N1, 600” Yesufu said.
Despite these challenges, Yesufu remains optimistic. He maintained that stabilization of the exchange rate will encourage more local companies to participate in the future, reducing the heavy reliance on international exhibitors.
“If the exchange rate remains steady for a prolonged period, local companies will likely recover and be able to reinvest in such platforms,” he added.
He pointed out that the Nigerian Energy Exhibition remains a key event in the country’s calendar, drawing attention from various sectors, but as the financial strain continues, local businesses are at risk of being priced out unless significant improvements are made to support them.
