Power Crisis: Why Nigeria’s Small Businesses Are Shutting Their Doors
Nigeria’s fragile small-business economy is buckling under a familiar burden: unreliable electricity. Across parts of the Abuja, entrepreneurs say prolonged outages and erratic supply are pushing viable enterprises to the brink—despite years of heavy public spending in the power sector.
From welding workshops to cold rooms and fashion studios, the verdict from operators is blunt: power instability has become a business-killer.
Investment Without Impact
Small business owners question why billions reportedly invested in power generation, transmission and distribution have not translated into dependable supply at the consumer end.
Emeka Uba, a welder in Lugbe, says the disconnect is existential for micro-enterprises:
“Every day we hear of billions invested in the power sector, but it does not translate to commensurate supply. Businesses are folding up every day,” said Emeka Uba, Welder, Lugbe.
“For two to three days, there may be no power in my area. I can’t afford fuel for my generator. I’m planning to quit this business and look for something that doesn’t need electricity.”
His experience reflects a wider reality: when outages stretch into days, generators become liabilities, not lifelines.
Cold Chains Breaking, Capital Evaporating
For electricity-dependent businesses, losses are immediate and compounding. Irene Amah, a cold-room operator in Lugbe, says unstable supply turns inventory into waste.
“Many small businesses have collapsed because of unstable power,” said Irene Amah, Cold-Room Operator, Lugbe.
“My goods keep going bad. I’m thinking of quitting rather than running at a loss.”
Cold storage, food retail and pharmaceuticals—sectors vital to urban livelihoods—are particularly exposed when the grid fails.
Missed Seasons, Missed Income
The ripple effects extend to service providers. Amos Osahon, a fashion designer in Kubwa, says outages during peak periods cost him customers and credibility.
“During the festive period, I couldn’t meet customer demand because of unstable electricity,” said Amos Osahon, Fashion Designer, Kubwa.
“Many customers left angry. Government needs to revisit the power sector and make it work.”
For artisans whose income depends on deadlines, power unreliability converts demand into disappointment.
Retail at the Mercy of the Grid
Micro-retailers face a daily arithmetic of survival. Angela Pam, who runs a small drinks shop in Kubwa, explains how outages wipe out margins.
“I sell water and minerals to feed my family. Without electricity, I can’t cool my goods,” said Angela Pam, Retailer, Kubwa.
“If I buy ice blocks every day, there will be nothing left. I’m appealing to the government to improve power supply.”
What looks like a minor inconvenience at scale becomes a household crisis at the micro level.
Rationing Fatigue in the Periphery
In Kuje, businesses say rationing offers little predictability. Samuel Ozigbo, a businessman, notes that even scheduled supply often fails to materialise.
“Power is rationed, and even on days we’re supposed to have electricity, it doesn’t come,” said Samuel Ozigbo, Businessman, Kuje.
“In 2026, government should put measures in place to ensure stable and reliable power.”
Predictability, operators argue, matters as much as volume.
BRANDECONOMY Insight
Nigeria’s power problem is no longer abstract—it is measurable in shuttered shops, spoiled inventory and abandoned trades. Small businesses don’t need grand announcements; they need reliable kilowatts. Until reforms deliver last-mile stability—through grid reliability, metering, service accountability and distributed solutions—the country’s MSME engine will continue to sputter. Power is not just infrastructure; it is economic oxygen.
