Power Crisis in Nigeria Fuels Inflation and Job Losses

PowerUp Nigeria, a consumer advocacy group, has stated that Nigeria's persistent power crisis is significantly contributing to inflation and job losses, especially in the manufacturing sector. Adetayo Adegbeml, the Executive Director of PowerUp Nigeria, released a statement highlighting that 60% of manufacturing firms have reportedly abandoned the national grid due to unreliable electricity supply.

This abandonment has resulted in a staggering N676.6 billion spent on alternative energy sources in the first half of 2025, compared to N708.1 billion in the second half of 2024. The power crisis has led to an estimated 18,935 job losses in the manufacturing sector within the first six months of 2025, as firms reduce operations or exit the grid entirely.

The lack of reliable electricity supply is said to undermine Nigeria's economic growth aspirations, with annual economic losses estimated at N10.1 trillion. Adegbeml emphasized that addressing the power sector crisis is critical for reversing the decline in manufacturing and boosting employment.