Costly Blackouts: Nigerian Firms Burn N400bn on Generators in Q1 2026

Nigeria’s power crisis is crippling businesses. In the first quarter of 2026, 24 companies listed on the Nigerian Stock Exchange spent N400.83 billion on diesel, gas and other alternatives to keep the lights on. That figure is 3.66 per cent higher than in Q1 2025, while firms that separately disclosed electricity expenses saw an 81.5 per cent rise in power costs amid higher tariffs and worsening supply. The World Bank warns that unreliable electricity costs Nigeria about $29 billion annually, equal to 5–7 per cent of GDP. More than 70 per cent of Nigerian firms now depend on generators, forming a “shadow grid” of 14–20 GW of self-generated capacity. Experts say this diverts capital from growth, fuels inflation and harms competitiveness. They call for urgent reforms, renewable energy investment and stronger government leadership to rebuild a reliable national grid.

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