How incessant grid collapse frustrates Nigerian businesses

Nigeria’s electricity grid collapsed again on Tuesday morning, plunging Africa’s most populous nation into darkness for the second time in 2026. This further deepens concerns over the fragility of the central power system and the rising cost of doing business in Nigeria.

BusinessDay’s check on the national distribution load profile at 11:15 am showed that all distribution companies (DisCos), including Abuja, Eko, Benin, Enugu, Ibadan, Jos, Kano, Kaduna, Port Harcourt, and Yola, had zero load.

The repeated collapse underscores ongoing challenges in Nigeria’s power sector, including infrastructure strain and generation shortfalls, leaving millions of homes and businesses without electricity.

Read also: Nigeria records second grid collapse in four days

Implications for businesses

Speaking to BusinessDay on the implications of the incessant grid collapse on businesses, Lanre Elatuyi, a power sector analyst, noted that electricity plays a vital role in keeping businesses afloat, from small-scale enterprises like local shops and eateries to large industrial activities such as manufacturing and production.

He emphasised that without reliable power, businesses struggle to operate efficiently, leading to lost productivity and revenue.

“The 21st century economy is entirely dependent on electricity. For a developing country like ours, electricity is important for the survival of businesses, be it small- scale enterprises or industrial activities.

“Sudden outages can result in production loss for big industries and also eats into the profitability of businesses when alternative but expensive electricity has to be provided after outages,” he said.

Elatuyi explained that power outages have pushed many firms into adopting alternative sources of energy.

Captive power generation significantly raises operating costs. Gas infrastructure, generators, maintenance and fuel logistics add to production expenses, which are often passed on to consumers through higher prices for goods and services.

Also in a chat with BusinessDay, Adetayo Adegbemle, executive director, Powerup Nigeria, decried the continuous exit of big firms from the grid, stating that the grid cannot work optimally when it is sustained by residential customers.

He emphasised that the government must make an effort to reverse the trend of companies exiting the grid as it has pushed the load of sustaining the grid onto residential consumers.

He said, “You cannot build the grid on residential consumers. It has to be built on industries and commercial customers. They are the ones that can wake up in the morning and use 500 megawatts (MW) to 1,000MW at once.

“For a country that wants to industrialise and provide jobs for over 250 million people, the priority should be strengthening the national grid and getting manufacturers back on it. We need a power sector that works, not a piecemeal approach that breaks everything into small, unsustainable bits. The national grid must come first.

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“We have allowed the big consumers to escape the national grid, pushing the load of sustaining it onto residential consumers. The tariff becomes more expensive for them, while producers continue to seek alternatives, albeit more costly. The federal government should, as a matter of urgency, reverse this trend.

“I have previously mentioned how the money manufacturers are spending on alternative energy sources should be reeled into the national grid—first, to ensure grid stability, and then to reduce the cost of grid electricity,”

Firms exit grid

BusinessDay’s checks showed that several companies operating in Nigeria, including major manufacturers, have exited the national grid due to unstable power supply and adopting self-generated captive power.

Firms such as Dangote Industries, Nigerian Breweries, Honeywell Flour Mills and MTN now generate over 6,500MW through independent, costlier sources.

According to Nigerian Electricity Regulatory Commission (NERC), at least 20 additional Nigerian companies exited the national electricity grid between January and September 2025, installing captive power plants with a combined capacity of 1,045.54 megawatts (MW).

The commission said Kwale Genco FZE in Ikot Abassi, Akwa Ibom state, got a permit to generate 700MW of electricity while Obu Cement Company Limited (BUA) in Okpella, Edo State, also obtained a permit to generate 160.95MW.

Also, NNPC Towers, CCK Electric Power Tech. Company, Pulkit Alloy And Steel Limited, Everest Pulp and Paper Limited, and Nigeria Pipes Limited got similar permits.

Read also: Nigeria’s power math flips as solar becomes cheaper than grid

Others who have exited the grid includeWest African Container Terminal Nigeria Ltd, Nile University of Nigeria, Sequoia International Development Ltd, Yinson Operations & Productions West Africa Ltd and Azura Power West Africa Limited.

Data from the Commission revealed that the latest wave of self-generation spans academics, manufacturing, energy, and agriculture, bringing the total number of firms generating their own electricity far above levels envisaged under Nigeria’s power sector reform programme.

The development reflects persistent grid instability, frequent system collapses, unreliable supply from distribution companies (DisCos) and rising tariffs that have failed to deliver commensurate service improvements.

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