Lagos Businesses Cry Out Over Exorbitant Electricity Bills and Endless Blackouts

Business owners in Lagos have raised alarm over skyrocketing utility bills and relentless power outages. They say standard billing has become a form of extortion under the current management of the distribution companies. One manager from a Surulere pizza outlet highlighted a glaring disparity. His 250-square-metre production line attracts a monthly charge of ₦320,000. Yet a 40-square-metre shop in Ajao was billed ₦1.124 million for a single month despite nearly zero supply. Forced to run operations on a diesel generator at ₦2,000 per litre, he warned the costs are unsustainable and could lead to mass layoffs. A hotel operator in Festac Town reported a similar ordeal. After paying around ₦2 million early this year, its May bill jumped to ₦3.9 million following an undocumented move to a higher tariff band. Supply rarely exceeds four hours, so they spend an extra ₦3–4 million on diesel. Attempts to correct billing errors were met with demands for a “goodwill” payment and empty promises of reconnection. Experts blame smeared multi-tier tariff reforms and lax enforcement by regulators. They describe the practices as “corruption pro-max” and say distribution companies treat their roles as cash-cow opportunities at the expense of local businesses and the wider public.

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