The prolonged electricity outage currently affecting Lagos and parts of Ogun State may drive the cost of alternative energy sources to as high as ₦2 trillion by the end of 2025, according to the Organised Private Sector (OPS).

Due to ongoing maintenance work on the Omotosho–Ikeja West 330kV transmission line, Lagos is facing daily blackouts from 8 a.m. to 5 p.m. between July 28 and August 21. The outage has disrupted supply from major distribution companies Ikeja Electric and Eko DisCo, both serving Nigeria’s most commercially active city.

This has forced businesses, especially manufacturers and small enterprises, to rely heavily on generators powered by diesel, petrol, or gas—adding a significant burden to their operating costs.

The Manufacturers Association of Nigeria (MAN) disclosed that manufacturers spent ₦1.11 trillion on alternative energy in 2024 alone. With the current power disruptions, that figure could rise to between ₦1.5 trillion and ₦2 trillion by the end of this year.

Segun Ajayi-Kadir, Director General of MAN, noted that most industries located in Ikeja are now facing even steeper production expenses due to fuel costs. “As manufacturers turn to alternative energy sources, we’re likely to see a sharp rise in production costs, which will affect product prices,” he said.

The Lagos Chamber of Commerce and Industry (LCCI) also expressed concern over the blackout’s impact on MSMEs, which make up more than 96% of Nigerian businesses. LCCI Director General, Dr. Chinyere Almona, warned that the energy crisis could worsen existing challenges already facing small businesses, such as inflation and poor infrastructure.

Ajayi-Kadir added that manufacturers’ energy costs had already risen by over 42% between 2023 and 2024. If the trend continues, local production could become even more expensive and unsustainable.

OPS stakeholders are calling for urgent government intervention and long-term improvements to Nigeria’s power infrastructure to prevent further economic strain.