By Gambo Zilkifilu Mohammed

Reliable electricity which is the most basic requirement for modern commerce has become one of the most expensive inputs for running a business. Instead of investing profits in expansion, new equipment or additional employees, entrepreneurs often divert scarce resources to fuel, generator maintenance, solar installations and replacement parts.

For many Nigerians, the workday does not begin when the shop opens. It begins with a familiar question: Has the light come? If the answer is no, another decision quickly follows: Should I switch on the generator/solar or wait a little longer? That decision, repeated every day in markets, workshops and business districts across the country, has become one of the defining realities of doing business in Nigeria.

Small and Medium-sized Enterprises (SMEs) remain the backbone and engine of Nigeria’s Economy. According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the National Bureau of Statistics (NBS), they account for the overwhelming majority of businesses in the country and provide employment for millions of Nigerians. They support families, sustain local communities, and contribute significantly to economic growth.

Most of the businesses are: roadside artisans, fashion designers, food vendors, welders, printers, small-scale manufacturers etc, these enterprises keep local economies alive and sustain countless families. Yet many of these businesses operate under one of the harshest electricity conditions or environments that no business plan can comfortably accommodate.

From the tailor in Kano who cannot power an industrial sewing machine, to the barber in Abuja waiting for electricity before attending to customers, to the frozen-food seller in Port Harcourt hoping the freezer stays cold long enough, unreliable electricity has become more than an inconvenience. It is steadily eroding livelihoods, shrinking profits and discouraging entrepreneurship.

For barbers, welders, tailors, cold-room operators, restaurants, pharmacies, cybercafés, and small manufacturers, every power outage translates directly into financial losses. Many of these businesses now spend a substantial portion of their operating expenses simply to keep the lights on.

For decades, Nigerians have joked about “NEPA taking light.” What once sounded like harmless humour has evolved into one of the country’s most serious economic challenges. Today, the electricity crisis is not simply about darkness; it is about opportunity lost, businesses delayed and dreams deferred.

In many neighbourhoods, the steady hum of generators has become the soundtrack of economic survival. The challenge extends beyond inconvenience. The World Bank’s Enterprise Surveys consistently identify unreliable electricity as one of the biggest obstacles facing businesses in Nigeria. Frequent power interruptions reduce productivity, disrupt production schedules and increase operating costs, particularly for micro and small enterprises with limited financial reserves.

Reliable electricity which is the most basic requirement for modern commerce has become one of the most expensive inputs for running a business. Instead of investing profits in expansion, new equipment or additional employees, entrepreneurs often divert scarce resources to fuel, generator maintenance, solar installations and replacement parts.

A baker cannot meet customer orders if the ovens cannot run consistently. A welder cannot complete fabrication jobs without power. A cybercafé loses customers when computers suddenly shut down. Pharmacies struggle to preserve temperature-sensitive medicines, while cold-room operators risk losing perishable goods during prolonged outages.

For service providers, every blackout is also a customer-service problem. Delayed deliveries, cancelled appointments and interrupted production weaken customer confidence and reduce repeat business. In a highly competitive economy, reliability often determines survival.

Nigeria’s electricity challenges have become even more pronounced amid rising energy prices and broader economic pressures. Higher fuel costs have significantly increased the expense of operating petrol and diesel generators, leaving many businesses with difficult choices: increase prices, reduce operating hours or absorb losses.