Power crisis fuels inflation, job losses, consumer group

Nigeria's persistent electricity crisis is directly fueling inflation, escalating production costs, and worsening job losses, particularly within the manufacturing sector, according to consumer rights group PowerUp Nigeria.

Executive Director Adetayo Adegbemle stated that inadequate and unreliable electricity supply has become a major impediment to Nigeria's economic growth and industrial development. The manufacturing sector is severely impacted, with over 60% of firms reportedly abandoning the national grid due to its unreliability and rising costs. These businesses are forced to spend billions on alternative energy sources, such as generators, to maintain operations.

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The statistics paint a sobering picture of Nigeria’s manufacturing landscape. Over 60 percent of manufacturing firms have exited the national grid, representing an unprecedented abandonment of critical infrastructure by the very enterprises that should be anchoring economic growth.

"The statistics paint a sobering picture of Nigeria’s manufacturing landscape," Adegbemle said. "Over 60 percent of manufacturing firms have exited the national grid, representing an unprecedented abandonment of critical infrastructure by the very enterprises that should be anchoring economic growth." Manufacturers spent approximately N676.6 billion on alternative energy in the first half of 2025 alone, a significant expense that is inevitably passed on to consumers through higher prices for goods and services.

This cycle of rising production costs leads to higher consumer prices, reduced purchasing power, and ultimately, slower economic growth. Furthermore, the power crisis has directly contributed to substantial job losses. The manufacturing sector recorded 18,935 job losses in the first six months of 2025, as companies scaled back operations, relocated, or exited the grid entirely. Adegbemle noted that these are not just statistics but represent families losing income and communities losing economic stability.

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The manufacturing sector recorded 18,935 job losses in the first six months of 2025, a direct consequence of firms reducing operations, relocating, or exiting the grid entirely.