Most Nigerian firms rely on generators due to power shortages
The African Development Bank (AfDB) reports that over 70% of Nigerian businesses own or share generators because of unreliable electricity supply. This widespread reliance on self-generated power is causing significant financial losses and undermining business profitability. The AfDB highlights that these challenges are part of broader infrastructure and governance issues affecting firms and households across Africa. The bank says improving public service delivery could help restore trust and boost tax compliance.
TLDR
- AfDB revealed that 70.7% of Nigerian firms own or share generators due to frequent power outages.
- Power outages cost Nigerian businesses about three per cent of their annual sales.
- Many households and firms pay privately for basic services, which the AfDB calls “parallel levies.”
- More than 40% of public investment spending in Africa is currently lost to inefficiencies.
- The AfDB says Africa could unlock up to $1.43tn in additional annual financing by addressing resource mobilisation and utilisation inefficiencies.
