The vibrant economic hub of Nigeria, Lagos State, is set to undergo a significant power disruption that could cost local businesses, banks, and manufacturers hundreds of billions of Naira. A planned 25-day blackout has commenced, impacting the daily operations of numerous enterprises across the region.

What’s Causing the Power Outage?

Last Friday, Ikeja Electric and Eko Electricity Distribution Company (Eko Disco)—two of Nigeria’s major electricity distribution firms—publicly announced that Lagos and parts of Ogun State, including Agbara, will face ongoing power outages from July 28 to August 21, 2025.

Eko Disco clarified that the outages will occur each day between 8:00 a.m. and 5:00 p.m., affecting numerous neighbourhoods in Lagos and adjacent areas. Similarly, Ikeja Electric, which supplies power to most parts of Lagos State, confirmed that maintenance work on the Omotosho–Ikeja West 330 kV transmission line by the Transmission Company of Nigeria (TCN) is the primary reason for the prolonged outage.

Magnitude of the Impact

Lagos, Nigeria’s commercial heartbeat, witnesses an estimated N13 trillion in monthly business transactions, much of which is powered by electricity. According to Mr. Biodun Ogunleye, Commissioner for Energy and Mineral Resources, the two distribution companies—Ikeja Electric and Eko Disco—collectively rake in over N200 billion in revenue quarterly, underscoring their pivotal role in the nation’s economy.

However, this planned blackout is expected to cause significant revenue losses for these companies, likely aggravating Nigeria’s ongoing liquidity crisis within the power sector.

Industry Reactions and Expert Insight

In an exclusive interview with Daily Post, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), warned about the detrimental effects of the outage on Nigeria’s economy.

He emphasised that the blackout could lead to soaring energy costs for businesses and manufacturers, many of which operate 24/7—such as hotels, hospitals, supermarkets, and factories. Given that grid power remains the more affordable option relative to costly alternatives like diesel or gas generators, the disruption forces many businesses to incur higher expenses to keep their operations running.

“The cost implications are enormous—potentially running into hundreds of billions of Naira,” Yusuf explained. “Many businesses will have to operate with reduced hours or switch to expensive backup power sources, which impacts productivity and profitability.”

He further acknowledged the crucial necessity of infrastructure upgrades:

“While the disruption is painful, it’s a necessary sacrifice to strengthen the national grid. For years, unreliable investment, aging infrastructure, and poor maintenance have hampered grid performance, leading to frequent collapses. If this maintenance improves the system’s resilience, the long-term benefits will outweigh the short-term pain.”

The upcoming outage underscores Nigeria’s ongoing struggle with electricity reliability—a challenge that continues to hinder economic growth. Though painful in the short term, targeted maintenance and investments are essential for building a more robust and stable power system.

As Lagos’s businesses brace for this period of disruption, the hope is that these efforts will ultimately lead to a more dependable energy sector and a more resilient economy.