Businesses In Lagos And Ogun Face Massive Losses As 25‑Day Power Outage Begins

……Blackout Begins in Nigeria’s Economic Hub

Business owners banks and manufacturers in Lagos and parts of Ogun State are bracing for financial losses that could run into hundreds of billions of Naira as a planned 25-day power outage begins

The blackout which commenced on July 28 is being implemented by Ikeja Electric and Eko Electricity Distribution Company affecting Nigeria’s commercial nerve centre and its surrounding communities

Both DisCos announced in separate statements last week that the power outage would stretch from 8 am to 5 pm daily and continue until August 21 2025

⁠The outage will occur between 8:00 am and 5:00 pm each day affecting several parts of Lagos and other serviced areas

Maintenance Work Behind Scheduled Outage

The electricity distribution companies explained that the outage is necessary due to scheduled maintenance work on the Omotosho–Ikeja West 330 kV line by the Transmission Company of Nigeria TCN

While Ikeja Electric supplies most of Lagos State Eko DisCo manages the southern parts including Agbara in Ogun State

These two companies are known to receive the highest allocation from the national grid among all electricity distributors in the country

Economic Activity Under Threat

According to Biodun Ogunleye the Lagos State Commissioner for Energy and Mineral Resources businesses in Lagos alone spend over N13 trillion monthly on electricity bills indicating how critical power is to economic activity in the state

With this extended blackout the losses could be staggering especially for businesses that operate around the clock

The Nigerian Electricity Regulatory Commission’s Q1 2025 report also shows that Ikeja Electric and Eko DisCo generated the highest revenues among their peers collecting N101 billion and N105 billion respectively

However the ongoing outage is expected to significantly cut into their revenue while worsening the liquidity strain within Nigeria’s already fragile power sector

Experts Warn of Severe Business Disruptions

Speaking with newsmen Dr Muda Yusuf CEO of the Centre for the Promotion of Private Enterprise CPPE warned that the blackout would carry a massive economic toll

⁠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 Dr Muda Yusuf stated.

He highlighted the operational challenges that many businesses face during such blackouts especially in critical sectors like healthcare hospitality and retail

⁠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

Yusuf pointed out that although grid power has been criticised for its high tariffs it remains cheaper than alternative sources like diesel and gas hence the shift would increase costs and reduce productivity

⁠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

A Painful but Necessary Sacrifice

Despite the heavy burden the blackout imposes Yusuf acknowledged that maintaining the national grid is a crucial step toward long-term power stability

⁠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

He noted that years of poor investment and outdated infrastructure have made the grid one of the weakest links in Nigeria’s power supply chain