Nigerian businesses to lose billions of naira as Eko DisCo announces 25-day blackout in Lagos, Ogun

Businesses, manufacturers, and banks in Lagos—the commercial hub of Nigeria—are expected to suffer losses running into hundreds of billions of Naira as a 25-day daily power outage begins across the state.

Electricity distribution companies Ikeja Electric and Eko Electricity Distribution Company (Eko DisCo) announced in separate statements on Friday that parts of Lagos and Agbara in Ogun State would experience daily blackouts from 8:00 a.m. to 5:00 p.m., July 28 to August 21, 2025.

The outage is linked to critical maintenance work on the Omotosho–Ikeja West 330kV transmission line by the Transmission Company of Nigeria (TCN).

While Ikeja Electric serves a significant portion of Lagos, Eko DisCo covers the southern part of the state, including Agbara. Both are among the top electricity distributors in Nigeria, with combined revenues exceeding ₦206 billion in Q1 2025, according to the Nigerian Electricity Regulatory Commission.

However, this maintenance-induced blackout is expected to trigger a sharp revenue decline for the DisCos and worsen liquidity challenges in Nigeria’s already struggling power sector.

Heavy Economic Impact

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), warned of the far-reaching economic impact of the blackout. Speaking to Nigeria News 247, he noted that businesses reliant on grid electricity will face rising operational costs due to a shift to alternative power sources like diesel and gas.

“The cost implication will be enormous,” he said. “Businesses that can’t afford downtime—such as hospitals, hotels, supermarkets, and manufacturers—will have to run on expensive backup power, significantly impacting their bottom line.”

Yusuf added that the prolonged outage may force many businesses to reduce working hours, affecting overall productivity in Nigeria’s most economically vital state.

According to Lagos State’s Commissioner for Energy and Mineral Resources, ₦13 trillion is spent monthly on electricity within the state. The economic disruption from the outages could, therefore, translate into losses of hundreds of billions of Naira.

A Necessary Sacrifice?

Despite the challenges, Yusuf acknowledged the necessity of the grid maintenance, describing it as a “sacrifice worth making” to strengthen the fragile national transmission system.

“The national grid has long suffered from poor investment and outdated infrastructure. If the TCN is now serious about improving it, then temporary sacrifices may be necessary for long-term gains,” he added.

The outage is expected to test the resilience of Lagos’s business sector and highlight the urgent need for sustainable power solutions in Nigeria’s economic capital.