70% of Nigerian Firms Rely on Generators, AfDB Reports

The African Development Bank (AfDB) revealed in its 2026 African Economic Outlook report that 70.7% of firms in Nigeria depend on generators due to ongoing electricity shortages, which result in losses amounting to about 3% of annual sales. The report highlights the significant reliance on self-generated power, reflecting deep infrastructural challenges and government inefficiencies that undermine business profitability and erode confidence in the taxation system.

It warns that weak public service delivery imposes hidden financial burdens on households and businesses across Africa. The AfDB also noted that nearly $469 billion in potential revenue remains untapped in Africa due to poor tax compliance and ineffective policy design.

The report calls for stronger public service delivery in areas such as electricity, healthcare, and sanitation to improve trust in government and enhance tax collection efforts, thereby reducing the need for households and firms to self-provide services.