Businesses across Lagos and parts of Ogun State are facing a serious economic blow as a 25-day power outage commenced this week, following announcements by Nigeria’s leading electricity distribution companies. The blackout, which began on July 28 and is scheduled to last until August 21, will see electricity supply cut off daily from 8:00 a.m. to 5:00 p.m., disrupting operations in Nigeria’s busiest commercial zones.
According to notices issued by Ikeja Electric and Eko Electricity Distribution Company, the disruption is due to essential maintenance on the Omotosho–Ikeja West 330kV transmission line by the Transmission Company of Nigeria. While the outage affects much of Lagos State, including areas under Ikeja Electric’s jurisdiction, it also extends to Agbara in Ogun State, which is serviced by Eko DisCo. Both companies play key roles in Nigeria’s electricity supply, with some of the highest grid allocations and consumer reach nationwide.
The implications of this scheduled downtime are already raising alarms among stakeholders. Businesses that rely on steady power to remain operational now face the costly burden of switching to alternative energy sources like diesel or gas generators. These alternatives come at a significantly higher cost, adding pressure to companies already battling high inflation and energy prices. Daily operations for hotels, hospitals, supermarkets, and manufacturing plants—especially those requiring 24-hour electricity—will be severely impacted, with many expected to cut hours or reduce output in a bid to manage costs.
Dr. Muda Yusuf, Chief Executive of the Centre for the Promotion of Private Enterprise, expressed deep concern over the economic fallout. In a conversation, he noted that while the maintenance is necessary, the cost to businesses will be staggering. He emphasized that the financial burden of running generators for nearly a month will push energy expenses through the roof, affecting productivity and profit margins. Lagos, Nigeria’s economic hub, is home to a vast majority of the country’s businesses and consumes a significant portion of power from the national grid. According to state estimates, Lagos alone spends over ₦13 trillion monthly on electricity, making any disruption a matter of national economic concern.
Data from the Nigerian Electricity Regulatory Commission shows that in the first quarter of 2025, Ikeja Electric and Eko DisCo generated ₦101 billion and ₦105 billion respectively in revenue, the highest among all DisCos. However, the current power cut is likely to impact their collections and deepen the existing liquidity crisis in the power sector. The drop in revenue also poses a setback to reforms aimed at strengthening Nigeria’s electricity infrastructure.
Despite the downside, Dr. Yusuf believes that the decision to embark on grid maintenance is a necessary sacrifice. He pointed out that the national grid has been plagued by frequent collapses, largely due to outdated infrastructure and insufficient investment in maintenance. Strengthening the transmission line is expected to improve long-term stability and reliability, even though the short-term cost is steep for the private sector. While the blackout may disrupt economic activity temporarily, it could help prevent future system failures that have historically thrown large parts of the country into darkness without warning.
As the blackout continues, residents and businesses are urged to plan accordingly, adopting energy-efficient practices and investing in backup power where possible. Though disruptive, the maintenance work could pave the way for a more stable grid, a goal many Nigerians have long demanded.