25-Day Power Outage in Lagos, Ogun to Cost Nigerian Businesses Billions

Widespread Blackout Threatens Economic Activity Across Southwest Nigeria

A major 25-day electricity blackout has commenced across Lagos and parts of Ogun State, threatening to cost business operators, banks, manufacturers, and service providers hundreds of billions of Naira in financial losses.

The prolonged outage was officially confirmed by Ikeja Electric and Eko Electricity Distribution Company (Eko DisCo), Nigeria’s top electricity distribution companies, through separate public announcements released last Friday. Both companies stated that the blackout would significantly affect various areas within Lagos State and Agbara in Ogun State from July 28 to August 21, 2025, during business hours.

According to Eko DisCo, the disruption will span from 8:00 a.m. to 5:00 p.m. daily, cutting power supply to multiple locations under its coverage throughout the blackout period.

Ikeja Electric, responsible for most of Lagos, also issued a notice on the same maintenance plan, aligning with the outage window declared by Eko DisCo.

Reason for the Blackout

Both companies explained that the electricity disruption is due to scheduled maintenance on the Omotosho–Ikeja West 330kV transmission line, which is being carried out by the Transmission Company of Nigeria (TCN). The goal is to improve the reliability and strength of the national grid system, which has long suffered from inadequate investments and frequent system collapses.

Economic Hotspot in Darkness

Lagos, Nigeria’s commercial powerhouse, is home to the country’s largest concentration of businesses. The state reportedly spends around ₦13 trillion monthly on electricity consumption, according to Biodun Ogunleye, the state’s Commissioner for Energy and Mineral Resources.

Data from the Nigerian Electricity Regulatory Commission (NERC) for Q1 2025 indicates that Ikeja Electric and Eko DisCo lead the nation in revenue generation, having recorded ₦105 billion and ₦101 billion, respectively, during the period.

However, this 25-day outage is projected to significantly slash the DisCos’ revenue streams and worsen the broader liquidity crisis in Nigeria’s energy sector.

Expert Opinion: Businesses Will Suffer

In an exclusive interview with DAILY POST, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), highlighted the devastating consequences of the power interruption for business owners, workers, and the national economy.

He emphasized that companies reliant on grid electricity will face skyrocketing operational costs due to forced dependence on diesel generators, gas, and other alternative sources of power. “The cost impact of halting grid power for maintenance is substantial. Businesses must now resort to more expensive backup options to stay afloat,” he said.

Dr. Yusuf noted that organizations like hospitals, hotels, supermarkets, and some manufacturing firms cannot afford downtime and must operate 24/7, regardless of the hike in power costs. For these sectors, the grid remains the most affordable option compared to diesel and gas, despite ongoing complaints about high electricity tariffs.

“Operating for a full month with alternate power sources will severely hit the bottom line of many businesses. Productivity may also decline, as some companies will reduce working hours to cut down energy expenses,” he added.

Massive Economic Toll

Dr. Yusuf stressed that the economic consequences would be felt most acutely in Lagos, which consumes a significant share of the nation’s power and serves as its commercial backbone. “The cost of this power cut will likely reach hundreds of billions of Naira,” he warned.

However, he maintained that the blackout, while painful, might be a necessary sacrifice if it leads to improved grid performance and fewer system failures in the long run.

Need for Grid Overhaul

Dr. Yusuf concluded by urging support for TCN’s initiative, noting that Nigeria’s national grid has historically suffered from poor maintenance, outdated infrastructure, and chronic underinvestment. “Grid failure is one of the weakest links in the power value chain. Strengthening it is critical, and if this maintenance will help, then the economic pain might be worth it.”