- Arnergy is transforming digitally, adopting SAP’s S/4HANA Cloud to enhance efficiency and support growth in Nigeria’s expanding renewable energy market.
- Recent fuel price hikes and increased electricity tariffs in Nigeria drive a surge in demand for affordable, clean energy solutions, positioning Arnergy for significant market opportunities.
- Partnering with ACED Consulting, Arnergy focuses on change management to ensure the successful adoption of new systems, paving the way for future scalability and leadership in West Africa’s renewable energy sector.
Arnergy, a leading renewable energy provider in Nigeria, has launched a comprehensive digital transformation to boost operational efficiency and support its ambitious growth plans. This strategic move comes as Nigeria’s renewable energy market expands rapidly due to significant economic and policy shifts.
James Fabola Jr, Arnergy’s Chief Financial Officer, stressed the urgent need to modernise the company’s systems. “The value proposition for renewables has strengthened considerably over the past year, presenting a substantial opportunity for our business to scale,” Fabola stated. “But our outdated systems hindered accurate and effective decision-making, preventing us from fully capitalising on these opportunities.”
Arnergy adopted SAP’s S/4HANA Cloud solution, a leading enterprise resource planning (ERP) system, to tackle these challenges. This decision marked a crucial step in the company’s digital transformation, which aims to provide real-time data insights and optimise operational processes. By embracing this technology, Arnergy plans to respond more swiftly and effectively to Nigeria’s dynamic energy market.
The company partnered with ACED Consulting, a firm with deep expertise in SAP deployments across West Africa, to implement the solution. ACED Consulting collaborated closely with Arnergy to tailor the SAP system to meet specific business needs.
“We conducted a visioning session with Arnergy’s leadership to understand their business model, including their value-creation and profit models,” said Abiola Folawewo, Managing Partner at ACED Consulting. “This deep understanding allowed us to customise the implementation process to align with Arnergy’s strategic objectives.”
Recent economic developments in Nigeria have intensified the demand for renewable energy solutions. In late 2023, the Nigerian government removed longstanding fuel subsidies, which caused fuel prices to skyrocket. This move, coupled with a sharp increase in electricity tariffs—rates in Band A jumped from NGN 68/kWh to NGN 225/kWh in the second quarter of 2024—has significantly increased the cost of conventional energy sources. As a result, renewable energy has become a more attractive and viable option for businesses and households.
“The four-fold increase in fuel prices over the past year has strengthened the value proposition for renewable energy in Nigeria,” Fabola noted. “Many businesses now see 40-60% of their operating expenses consumed by energy costs. For some, energy costs have surpassed revenue, leading to a renewed interest in affordable, clean energy solutions.”
Arnergy’s digital transformation ensures the company remains well-positioned to capitalise on this growing demand. The implementation of SAP’s S/4HANA Cloud followed the SAP Activate methodology, a comprehensive framework that includes change management processes to ensure a smooth transition. Arnergy’s team identified vital change agents within the company to champion the new system and regularly communicated the benefits of the transformation to all employees.
“We focused heavily on change management to ensure the new system would be embraced across the organisation,” Folawewo explained. “By consistently communicating the benefits—such as productivity boosts, efficiency gains, and enhanced decision-making capabilities—we aimed to drive a strong adoption of the new capabilities, further supporting Arnergy’s business objectives.”
Arnergy’s leadership viewed this transformation as more than just a technology upgrade—it also served as a crucial step in preparing the company for future growth. “We needed to fix problems before scaling up,” Fabola emphasised. “Without addressing these issues now, we risked replicating them across other business areas as we grew. With our new SAP system and the ongoing support of our implementation partners, we can now confidently look forward to a new phase of growth and scalability.”
As Nigeria continues its journey toward energy security and reducing its carbon footprint, Arnergy plays a crucial role in the region’s transition to cleaner, more reliable energy. By adopting SAP’s S/4HANA Cloud solution, Arnergy strengthens its strategy to meet the rising demand for sustainable energy. This digital transformation will empower Arnergy to make informed decisions, drive efficiency, and achieve long-term growth objectives.
This move also reinforces Arnergy’s commitment to innovation and leadership in the renewable energy sector in West Africa. By modernising its systems and processes, Arnergy positions itself for future success and contributes to the broader goal of accelerating the region’s transition to a low-carbon economy.
As the energy landscape in Nigeria and West Africa evolves, Arnergy’s digital transformation ensures the company stays at the forefront of the industry. Arnergy stands poised to lead the region’s shift toward renewable energy, drive energy security, and support the transition to Net Zero emissions.