Power outages are costing Nigerian businesses an estimated 3 per cent of their annual sales, according to the African Development Bank’s (AfDB) African Economic Outlook 2026 report. The report identified unreliable electricity supply as a major obstacle to business productivity and profitability, with firms experiencing revenue losses due to frequent disruptions.
Beyond lost sales, businesses are also facing rising operational costs as they invest heavily in alternative power sources. The AfDB noted that companies are increasingly funding services that would typically be provided through public infrastructure, adding further pressure to their bottom lines. The report revealed that 70.7 per cent of Nigerian firms own or share generators, reflecting the extent of reliance on self-generated electricity. This places Nigeria ahead of South Africa, where 63.3 per cent of firms use generators, and Tanzania at 38.7 per cent, highlighting the scale of the country’s power infrastructure challenges.
