Nigeria’s economic capital, Lagos State, and parts of Ogun State have been plunged into a daily 9-hour power outage beginning today, July 28, and scheduled to last until August 21, 2025.
The blackout, which affects both residential and commercial zones, is set to cost business owners, manufacturers, and banks hundreds of billions of Naira in operational losses and increased energy costs.
The outage, announced last week in separate statements by Ikeja Electric and Eko Electricity Distribution Company (Eko DisCo), is a result of scheduled maintenance work on the Omotosho–Ikeja West 330 kV transmission line by the Transmission Company of Nigeria (TCN).
Power supply will be cut from 8:00 a.m. to 5:00 p.m. daily, affecting large swathes of Lagos and the Agbara area of Ogun State.
Lagos, which accounts for over 60% of Nigeria’s industrial and commercial activities, is expected to bear the brunt of the economic impact. According to Mr. Biodun Ogunleye, Lagos State’s Commissioner for Energy and Mineral Resources, businesses in the state collectively spend an estimated N13 trillion monthly on electricity.
Financial and commercial hubs such as Ikeja, Victoria Island, Apapa, Lekki, and Agbara, which rely heavily on grid electricity to power banking halls, manufacturing lines, and logistics operations, are now forced to shift to costly alternative energy sources such as diesel generators and gas plants.
The Nigerian Electricity Regulatory Commission (NERC), in its first-quarter 2025 report, revealed that Ikeja Electric and Eko DisCo were the top revenue collectors among Nigeria’s 11 distribution companies, with earnings of N105 billion and N101 billion respectively. This blackout is expected to severely dent their revenues and further aggravate the liquidity crisis in Nigeria’s power sector.
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Speaking on the economic fallout, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), described the planned blackout as an “enormous burden” on already struggling businesses.
“The cost of shutting down grid supply for maintenance is immense. Businesses that cannot afford downtime—like hospitals, hotels, supermarkets, and manufacturers—will face skyrocketing energy costs,” Yusuf said.
“While the electricity tariff is high, it’s still cheaper than running on diesel or gas. The switch to off-grid solutions for nearly a month will reduce productivity and increase operating expenses,” he added.
Yusuf estimated the economic loss to run into “hundreds of billions of Naira,” as reduced work hours, energy expenses, and production downtimes compound across sectors.
Despite the economic toll, Yusuf acknowledged the necessity of the maintenance, citing years of underinvestment and a fragile national grid system.
“We’ve seen repeated grid collapses due to ageing infrastructure and poor maintenance. The grid is the weakest link in Nigeria’s power supply chain. Strengthening it is long overdue—even if it comes at a heavy cost now. This is a sacrifice we need to make for long-term stability,” he said.
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The announcement has sparked anxiety among small and medium enterprises (SMEs), who lack the capacity to absorb the high cost of alternative power. Industries such as food processing, textile manufacturing, and tech startups—which are highly power-dependent—have raised alarms over expected service disruptions and job losses.
Large businesses are also making contingency plans. A spokesperson for a major multinational food processing firm in Agbara said they will spend over N120 million on diesel to keep production running over the 25-day period.
In response to public backlash, a senior official at TCN, speaking on condition of anonymity, reaffirmed the need for the urgent repairs, describing the Omotosho–Ikeja West line as “critical infrastructure” that poses a risk of systemic failure if left unattended.
“The work is painful, but necessary. The grid has suffered multiple collapses already this year. If we don’t fix it now, we risk nationwide blackouts in the near future,” the source stated.
With over three weeks of daily blackouts ahead, businesses and residents are bracing for a difficult stretch. Analysts say unless emergency measures or subsidies are introduced, the effects may linger beyond August, further straining Nigeria’s already fragile economy.
As Nigeria continues to battle chronic energy challenges, this development underscores the urgent need for power sector reform, investment in grid modernization, and the decentralization of electricity generation and distribution.