Nigerian businesses to lose billions of naira as 25-day blackout hits Lagos, Ogun

Business owners, banks, and manufacturers are bracing for losses amounting to hundreds of billions of Naira as a 25-day power outage begins in Lagos, Nigeria’s commercial hub.

This follows separate announcements last Friday by Ikeja Electric and Eko Electricity Distribution Company, stating that Lagos and parts of Ogun State (specifically Agbara) will experience prolonged electricity disruptions.

Eko DisCo disclosed that the outage will occur daily during working hours, from 8:00 am to 5:00 pm, between July 28 and August 21, 2025.

“The outage will occur between 8:00 a.m. and 5:00 p.m. each day, affecting several parts of Lagos and other serviced areas,” Eko DisCo stated.

Ikeja Electric, which supplies power to a large portion of Lagos State, also confirmed the blackout.

According to the DisCos, the planned outage is a result of maintenance work being carried out by the Transmission Company of Nigeria on the Omotosho–Ikeja West 330 kV transmission line.

Lad Reporting notes that while Ikeja Electric covers a larger portion of Lagos State, Eko DisCo is responsible for the southern areas, including the Agbara community in Ogun State.

Both Ikeja Electric and Eko DisCo are among Nigeria’s leading electricity distribution companies, receiving the highest allocations from the national grid.

Lagos, being home to the majority of Nigeria’s commercial activities, reportedly spends around N13 trillion monthly on electricity, according to the Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye.

Data from the Nigerian Electricity Regulatory Commission’s Q1 2025 report shows that Ikeja Electric and Eko DisCo recorded the highest revenues, collecting N101 billion and N105 billion, respectively.

However, the ongoing blackout is expected to significantly reduce their earnings and further deepen the liquidity crisis plaguing Nigeria’s power sector.

CPPE highlights economic implications

In response to the development, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), told LAD REPORTING that the blackout will have a severe financial impact on businesses, residents, and the Nigerian economy as a whole.

He explained that the power outage will substantially increase energy costs for businesses and manufacturers, ultimately affecting productivity and overall economic output.

He said,

“The cost of the proposal to shut down the supply to the grid for maintenance will be enormous. The implication is that businesses that rely on the grid for supply will now have to shift to alternative sources of power. So we are likely to see significant pressure on energy costs for businesses in this period.

“Some businesses cannot afford to shut down; they have to operate 24 hours. We are talking about hotels, hospitals, supermarkets, and some manufacturers. They have to operate 24 hours, and this requires power. Generally, even with the complaint of high tariffs, using the power sources from the grid is cheaper than alternative sources of power like diesel or gas.

“This has a potentially huge cost implication for businesses, which will impact their bottom line. We are talking about close to a month. This will affect productivity because some businesses will have to operate for shorter hours due to the cost of energy.

“It has implications for the economy in the Lagos area. Don’t forget Lagos is the commercial nerve centre of the country. It consumes a substantial part of the power generation from the grid.

“The cost will run into hundreds of billions of Naira,” he said.

However, he noted that enduring the temporary loss of electricity is a necessary sacrifice to enhance the nation’s grid capacity.

“But again, we have been complaining about the quality of the National Grid, so if the government, through the TCN, is now committed to maintaining it and strengthening the capacity of the grid, I think it is a sacrifice that needs to be made.

“The performance of the grid has been poor due to poor investment, maintenance, and ageing facilities that have been there for years; that is why we have had a series of grid collapses.

“The grid appears to be one of the weakest links in the power supply chain. So the decision to maintain it is commendable, but the effect on business is enormous. But it is a sacrifice worth making at this time,” he added.