70.7% of Nigerian Firms Rely on Generators for Power

The African Development Bank (AfDB) revealed in its 2026 African Economic Outlook report that 70.7% of firms in Nigeria depend on generators to operate due to ongoing electricity shortages and power outages. This situation leads to substantial annual sales losses for businesses.

The report indicates that Nigeria's reliance on generators is higher than South Africa's 63.3% and Tanzania's 38.7%. The AfDB notes that unreliable electricity supply forces businesses to provide their own power, which significantly increases operational costs, reduces profits, and weakens competitiveness.

The report further discusses the broader implications of this reliance, including the hidden costs incurred by businesses due to inadequate public services. It stresses the need for improved delivery of critical public services such as electricity, healthcare, and education to alleviate the burden on households and firms, thereby strengthening trust between citizens and the government.