Nigeria’s economic powerhouse, is bracing for a 25-day electricity blackout that is expected to cost businesses, manufacturers, and service providers hundreds of billions of Naira in energy expenses and lost productivity.
The planned outage, announced separately by Eko Electricity Distribution Company (Eko DisCo) and Ikeja Electric on Friday, will run daily from 8:00 a.m. to 5:00 p.m., starting July 28 through August 21, 2025. The blackout will affect large swathes of Lagos and parts of Ogun State, including the Agbara industrial hub.
The disruption is due to maintenance work on the Omotosho–Ikeja West 330 kV transmission line by the Transmission Company of Nigeria (TCN), a critical link in the national power grid.
Eko DisCo and Ikeja Electric, the two distribution companies with the highest electricity allocation from the national grid, confirmed the development, citing TCN’s grid upgrade project as the reason for the temporary shutdown.
Industry experts say the economic cost of the outage could be staggering. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), told DAILY POST that businesses will now be forced to rely on more expensive, alternative sources of power such as diesel and gas, pushing up operational costs.
“For a city like Lagos, which runs largely on electricity and contributes significantly to Nigeria’s GDP, this outage could translate into losses running into hundreds of billions of Naira,” Dr. Yusuf said.
He noted that essential services such as hospitals, supermarkets, hotels, and manufacturers cannot afford to shut down, meaning they will bear the full brunt of the increased energy cost. Many small and medium-sized enterprises (SMEs), he added, may be forced to scale down operations due to unaffordable fuel expenses.
Despite the looming economic pain, Yusuf acknowledged the long-term benefits of grid maintenance. “If the TCN is serious about upgrading the grid to improve reliability, then it’s a sacrifice worth making. The national grid has suffered from underinvestment and poor maintenance for years. Strengthening it now is essential.”
Lagos is Nigeria’s most industrialized state and consumes a major share of the nation’s electricity. The state’s Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, recently estimated that Lagos-based businesses spend over N13 trillion annually on electricity bills, a figure likely to rise during the outage period.
According to the Nigerian Electricity Regulatory Commission’s Q1 2025 report, Eko DisCo and Ikeja Electric raked in N105 billion and N101 billion in revenue, respectively; the highest among all distribution companies. Analysts warn that these figures may decline due to the planned disconnection, further worsening the liquidity challenges in Nigeria’s fragile power sector.
As the outage begins, businesses are urged to plan ahead and explore cost-efficient alternatives where possible. Meanwhile, stakeholders are calling on the federal government and TCN to ensure that the maintenance work is completed on time and with minimal disruption.
