Nigeria’s national electricity grid has collapsed twice in five days. This incident, which often throws large parts of the country into darkness, also renews concerns over the economic, industrial and diplomatic costs of chronic power instability.

Data from the Nigerian Independent System Operator (NISO) showed that by 10:54 a.m. on the first incident, electricity allocation to all distribution companies (Discos) had dropped to zero. By 11:14 a.m., only the Delta Gas Power Plant was operational, generating a meagre 39 megawatts for a nation of over 200 million people.

The latest collapse follows a similar system failure last Friday, underscoring persistent structural weaknesses in Nigeria’s power infrastructure.

Confirming the outage, the Enugu Electricity Distribution Company (EEDC) said customers across Abia, Anambra, Ebonyi, Enugu and Imo states were affected. According to EEDC’s Group Head of Corporate Communications, Mr Emeka Eze, the company lost supply from its power source at about 10:48 a.m., plunging its franchise area into darkness.

While efforts are ongoing to restore supply, the frequency of grid failures has reignited debate among energy experts, economists and business leaders over the mounting losses, avoidable waste and long-term damage to Nigeria’s economic credibility.

Economic Losses and Industrial Damage

Experts estimate that Nigeria loses billions of naira daily to power outages, with grid collapses inflicting immediate and cascading damage across sectors. Manufacturing plants are forced to shut down abruptly, leading to equipment damage, spoiled raw materials and lost production cycles. Small and medium-sized enterprises (SMEs), which form the backbone of urban employment, are often the hardest hit.

An expert energy economist said that “every grid collapse represents a forced economic shutdown. Factories running continuous processes, cement, steel, food processing, suffer technical damage and financial losses that are rarely recovered.”

Beyond direct losses, repeated grid collapses result in systemic waste. Power plants shut down suddenly, gas supply contracts are disrupted, and restart processes lead to fuel losses. Distribution infrastructure suffers stress from abrupt load drops and surges, accelerating wear and tear.

Environmental experts also point to increased carbon emissions as businesses switch en masse to diesel and petrol generators. This undermines Nigeria’s climate commitments and worsens urban air pollution.

“This is not just an electricity issue; it is an environmental and public health problem,” an environmental policy analyst noted. “Each collapse pushes millions back to fossil-fuel self-generation.”

From an international perspective, constant grid failure sends a damaging signal to foreign investors and trading partners. Reliable electricity is a core indicator of economic readiness, particularly for export-oriented manufacturing, data services, pharmaceuticals and agro-processing.

Nigeria’s power instability complicates participation in global value chains, as multinational firms require predictable energy to meet delivery schedules, quality standards and compliance benchmarks.

“Electricity reliability is often assessed alongside security and regulatory risk,” said a Lagos-based investment adviser. “When the grid collapses repeatedly, Nigeria is perceived as a high-cost, high-risk destination, even when labour and market size are attractive.”