Nigeria's largest listed companies faced a sharp rise in energy costs in 2025, with the combined expenses of 10 top firms increasing by 108 percent to N7.98 billion from N3.44 billion the previous year, according to a BusinessDay analysis. The surge was driven by persistent power grid failures and rising diesel prices, forcing businesses to rely more on private generators. Affected firms include Dangote Sugar, BUA Foods, Dangote Cement, BUA Cement, First Holdings, Okomu Oil, Transcorp Hotels, Lafarge Africa, Geregu Power, and Zenith Bank. Dangote Sugar's energy bill rose 68 percent to N340.2 million, while Transcorp Hotels' costs climbed from N4.763 billion to N5.008 billion.
Okomu Oil's energy expenses increased by 26 percent to N1.245 billion, and Lafarge Africa reported a 64 percent jump to N137.5 million from N83.9 million. Geregu Power, an electricity generation company, saw its own energy costs rise to N15.1 million from N10.2 million, highlighting operational challenges within the power sector. First Holdings, parent of First Bank of Nigeria, recorded a 31 percent increase to N45.5 million. Aisha Mohammed, an energy analyst at the Lagos-based Centre for Development Studies, said the cost of power is now the biggest threat to manufacturing, with many factories operating only a few hours daily due to fuel costs. These rising expenses are passed on to consumers and contribute to higher loan rates and banking fees.
Geregu Power, an electricity generation company, faced higher energy costs despite being in the business of supplying power, exposing a deep flaw in Nigeria's energy infrastructure. This means companies generating electricity must spend more to produce it, undermining their efficiency and profitability. The rising costs are passed on to consumers and businesses, increasing the price of goods, services, and credit across the economy. For Nigerian firms already operating on thin margins, this cycle makes sustained production and investment more difficult.
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