Interview with Powerstove, NACC’s Partner of the Month

POWERSTOVE Ltd has been recognised as the Nigerian Alliance for Clean Cookstove‘s (NACC) Partner of the Month for June. In this interview, the Chief Executive Officer, Okey Esse, discusses the company’s vision and activities within Nigeria’s clean cooking industry.

Give us a brief introduction of your organisation. What motivated the conceptualization of Power Stove Ltd?

Growing up in a rural environment, I witnessed firsthand the challenges associated with traditional cooking methods, including significant smoke exposure and uncontrolled fires. This experience underscored the urgent need for safer and more efficient cooking solutions. Following my graduation from University, leveraging my background in Physics, I initiated the development of a clean cooking technology. This led to the establishment of our company in 2018, focusing on manufacturing Tier 4 smart, IoT-enabled clean cookstoves. These stoves are designed to utilise sustainable bio-pellets derived from wood and agricultural waste, and are equipped to self-generate electricity for charging mobile devices and powering small home appliances.

What does your organization seek to achieve in the Nigerian cooking energy market?

Our objective is to revolutionise traditional cooking practices by introducing advanced clean cookstoves that simultaneously address energy poverty for cooking and lighting purposes. Furthermore, we are providing Nigerian households with access to sustainable, clean Bio-Pellets, enabling them to achieve significant savings, specifically up to 80% on daily fuel costs compared to conventional fuels such as charcoal, firewood, and kerosene.

What are the opportunities identified in the country that have facilitated the growth of your clean cooking activities?

A primary opportunity lies in the substantial segment of the population that continues to rely on traditional cooking methods, representing a significant addressable market for our solutions. Additionally, the consistent availability of local raw materials for Bio-Pellet production has been crucial. This has allowed us to maintain stable Bio-Pellet pricing for the past two years, despite external cost pressures.

Job creation and the empowerment of women seem to be increasingly important. How do your clean cooking activities help drive employment generation and the empowerment of women?

As of the current date, our organisation employs over 73 full-time staff, with women constituting 65% of this workforce. Through our network of Direct Sales Representatives and Product Ambassadors, Powerstove has created an additional 81 roles, bringing our total employment contribution to 154 individuals.

If you are asked to advise the federal government of Nigeria on policy options, what are the three most important things the government can do to expand the market?

We propose three key policy interventions for the federal government to stimulate growth for clean cooking technology manufacturers:
Firstly, implement a robust, tech-driven subsidy mechanism that provides financial incentives or cashback to manufacturers based on their verifiable contributions towards environmental sustainability goals, aligning with Nigeria’s commitments under agreements like COP30.
Secondly, introduce a special token, code, or metering system that offers discounted energy tariffs to manufacturers, helping to mitigate the impact of high electricity costs on operational expenses.
Thirdly, increase import duties and Value Added Tax (VAT) on imported clean cookstoves to create a more favourable competitive environment for locally manufactured alternatives within Nigeria.

Where do you envisage your organization to be in the next 5 years?

Our vision is for Powerstove to become the leading clean cooking company across the African and Middle Eastern regions within the next five years.

What risk does your organization currently face and what is your biggest challenge?

Our most significant risks and challenges stem from unreliable power supply, the high logistical costs associated with transporting goods domestically, and fluctuations in accessing foreign currency required for importing certain raw materials.

What are your suggestions for moving the cooking energy market forward in Nigeria?

To accelerate the development of the clean cooking energy market in Nigeria, enhanced public awareness campaigns are necessary to educate households on the benefits of transitioning to clean cooking stoves and fuels. Establishing strategic partnerships with state governments is also vital. Furthermore, there is a need for financial mechanisms that can de-risk market entry for new clean cookstove companies and the creation of a strong Asset Management Portfolio to act as a guarantor for companies seeking access to foreign loans at favourable interest rates. Source: NACC