Businesses in Nigeria Slows as electricity gulps N221bn in H1

The Nigeria Business surfers as the cost of powering my business has doubled in the past year,” she said. “I’m struggling to keep up and I’m worried that I’ll have to close my shop if things don’t get better.”

Many Nigerian businesses, from micro to multinational, are struggling to cope with rising power costs amid the surge in the prices of petrol and diesel, used by many to power their generators.

Data obtained by BusinessDay from the financial statements of eight listed firms showed

that they recorded an 18.35 percent increase in energy costs to N221.75 billion in the first half of 2023 from N187.36 billion in the same period last year.

Leading the pack with the highest energy costs reported in H1 2023 are the cement makers, with Dangote Cement spending N157.020 billion on fuel and power, a 20.82 percent growth from 2022.

“The quantum of power produced in Nigeria is not even enough for individual homes, not to talk of meeting the demands of industries,” Samuel Anozie, managing director of ODS Empire, a Lagos-based manufacturer and realtor, said.

BUA Cement spent N47.91 billion on energy in H1 2023, an increase of 9.92 percent from N43.58 billion in the same period in 2022, while Dangote Sugar spent N42 million, up from N29 million in the same period of 2022.

BUA Foods Plc’s diesel and fuel costs rose to N216 million from N122 million in H1 2022.

Fidelity Bank posted N366 million as its electricity cost, up from N271 billion in the same period of 2022, while Wema Bank recorded N829 million as its diesel expenses as against N685 million in the same period of 2022.