BUSINESS AND ECONOMY

25-Day Blackout Hits Lagos, Ogun, Businesses Set to Lose Billions

Lagos and Ogun face a 25-day power outage from July 28 to August 21 due to grid maintenance.

Businesses brace for losses as firms rely on costly generators to survive the prolonged blackout.

Businesses, banks, and manufacturers in Lagos and parts of Ogun State are set to face massive losses as a 25-day power outage begins across key commercial areas.

This follows a recent announcement by Ikeja Electric and Eko Electricity Distribution Company that power supply would be disrupted daily between 8 a.m. and 5 p.m. from July 28 to August 21, 2025. The planned outage will affect several parts of Lagos as well as the Agbara community in Ogun State.

Both electricity companies explained that the blackout is necessary due to ongoing maintenance work on the Omotosho–Ikeja West 330kV transmission line, being carried out by the Transmission Company of Nigeria (TCN). The project aims to improve the stability and performance of the national grid.

Ikeja Electric and Eko DisCo are the two main electricity distributors serving Lagos and its environs. Ikeja Electric covers the larger portion of the state, while Eko DisCo supplies the southern parts, including industrial zones like Agbara. These companies also have the highest power allocation from the national grid, making them critical players in the country’s electricity supply chain.

Lagos is widely known as Nigeria’s commercial engine, hosting thousands of businesses, industries, and offices. According to the Lagos State Ministry of Energy and Mineral Resources, residents and businesses in the state spend over N13 trillion monthly on electricity alone. A significant drop in power availability will likely increase reliance on diesel and gas generators, raising operational costs for many firms.

Recent data from the Nigerian Electricity Regulatory Commission showed that Ikeja Electric and Eko DisCo recorded the highest revenues in Q1 2025, generating N105 billion and N101 billion respectively. However, the extended outage may lead to a decline in their revenue collection for the third quarter.

The blackout is expected to disrupt daily activities for both small businesses and large industries. From hotels and hospitals to supermarkets and manufacturing plants, many operators will be forced to seek alternative sources of power to keep operations running. For some, this could mean shorter working hours, reduced production, or even temporary shutdowns.

Though the power cut is tied to essential infrastructure maintenance, the financial impact on Nigeria’s economy particularly in Lagos and Ogun is expected to run into hundreds of billions of naira by the end of the 25-day period.

Jeremiah Nwabuzo

Nwabuzo Jeremiah, the visionary CEO of Kobo Media Global and Chief Editor at Newskobo.com, Nigeria’s most trusted and innovative online news platform.

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