Business owners, banks, and manufacturers are bracing for losses running into hundreds of billions of Naira as a 25-day blackout hits Lagos State, Nigeria’s commercial hub.
The development follows announcements by Ikeja Electric and Eko Electricity Distribution Company (Eko DisCo) last week, stating that Lagos and parts of Ogun State (Agbara) will experience extended power outages.
Eko DisCo disclosed that the blackout will last from 8 am to 5 pm daily between July 28 and August 21, 2025, affecting several parts of Lagos and its service areas. Similarly, Ikeja Electric confirmed a prolonged outage across its coverage zones.
Both companies attributed the disruption to ongoing maintenance of the Omotosho–Ikeja West 330 kV transmission line by the Transmission Company of Nigeria (TCN).
Lagos, home to a majority of Nigeria’s businesses, reportedly spends an estimated ₦13 trillion monthly on electricity, according to the state’s Energy Commissioner, Mr. Biodun Ogunleye. Data from the Nigerian Electricity Regulatory Commission (NERC) for Q1 2025 shows Ikeja Electric and Eko DisCo generated the highest revenues—₦105 billion and ₦101 billion respectively.
The outage is expected to significantly slash revenues for the two DisCos and deepen the liquidity crisis plaguing Nigeria’s power sector.
Economic Impact
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), warned that the blackout would impose huge financial burdens on businesses, residents, and the economy.
“The cost of this shutdown will be massive. Businesses reliant on grid power will be forced to turn to expensive alternatives like diesel or gas, which will increase operational costs,” Yusuf said.
He noted that critical sectors such as hospitals, hotels, supermarkets, and manufacturing firms that require uninterrupted power will be hardest hit. Reduced working hours due to high energy costs could also impact productivity.
“Given Lagos’s role as the country’s commercial nerve centre, the economic cost will run into hundreds of billions of Naira,” he added.
A Necessary Sacrifice
Despite the heavy toll, Yusuf described the blackout as a “necessary sacrifice,” emphasizing the need to strengthen Nigeria’s ageing and poorly maintained national grid.
“We’ve long complained about the grid’s inefficiency and frequent collapses. If this maintenance improves grid capacity, it’s a sacrifice worth making,” he stated.
He stressed that improved investment and maintenance of transmission infrastructure are critical to resolving Nigeria’s recurring power challenges.