Abuja’s power failure puts Wuse 2 businesses on life support 

For about a month, businesses in the area, which is home to upscale beauty salons, boutique hotels, tech startups, cafes, restaurants, and corporate offices, have been operating in near-total darkness.

The blackouts have forced many business owners to scale back or shut down altogether, unable to keep up with soaring energy costs and erratic electricity supply.

Small business owners say they are watching their livelihoods collapse as perishable goods spoil and operations grind to a halt.

The hardship facing Wuse 2 mirrors the nationwide energy dilemma. According to the H2 2024 Economic Report by the Manufacturers Association of Nigeria (MAN), Nigerian manufacturers spent a staggering N1.11 trillion on alternative energy in 2024 — a 42.3% jump from N781.68 billion in 2023. Notably, energy spending spiked from N404.80 billion in H1 to N708.07 billion in H2 2024, representing a 75% increase in just six months.

These rising costs have trickled down to SMEs, many of whom are now on the brink.

“We can’t afford diesel daily anymore,” laments Seyi, the manager of a beauty spa near Aminu Kano Crescent. “For every day the lights stay off, we lose customers and money. This is not sustainable.”

Electricity tariffs have skyrocketed — even Aso Villa is reportedly struggling with the cost — yet businesses in Wuse 2 are expected to bear the brunt with minimal or no provision at all. Many are either downsizing operations, relocating, or shutting down entirely.

Recently, the Deputy Governor of Lagos State, Obafemi Hamzat, raised the alarm over what he described as “crazy billing” by electricity distribution companies, revealing that his official residence was slammed with a staggering N29 million electricity bill for April, up from N2.7 million in March.

Juliet, who quit her 9-to-5 job in July 2023 to start a female clothing business in Wuse 2, is already considering an exit.

“I’m back to job hunting. I just can’t cope,” she told Naijaonpoint. “I spend about N100,000 weekly on electricity. We hardly get 5 hours of light a day, even at the best of times, and we’re on Band A. Sometimes, for more than 2 straight days, we go without light. How much am I even making?” 

“We moved here to grow, not to suffer,” said a tech entrepreneur who didn’t give his name. “But now, even the ‘centre of power’ has no power.” 

The concerns are shared widely. Recently, Fakhuus Hashim, a resident of Wuse 2, posted on X (formerly Twitter):

“Businesses in Wuse 2 are dying like flies… There’s little to no electricity provision in Abuja’s commercial hub for at least a month. They can’t run fully on generators. The cost of electricity is too high for even Aso Villa, talk less of small businesses.” 

His comments reflect growing disillusionment among residents and operators in the area, who say they’ve been left without any clear plan from authorities.

Recently, the Presidency allocated N10 billion to solar power project at the Presidential Villa. The government said the solar power project is seen as a direct effort to tackle Nigeria’s ongoing energy debt crisis, with federal institutions owing an estimated N47.1 billion in energy-related liabilities.

Recently, the Presidency allocated N10 billion to solar power project at the Presidential Villa. The government said the solar power project is seen as a direct effort to tackle Nigeria’s ongoing energy debt crisis, with federal institutions owing an estimated N47.1 billion in energy-related liabilities.

This is not just about Wuse 2. It’s emblematic of the broader crisis choking small and medium enterprises across Nigeria. In a country where a significant percentage of businesses rely on alternative power sources, Abuja’s energy failure is yet another blow to the already battered entrepreneurial ecosystem.

Industry insiders say the inability of distribution companies to manage the demands of commercial zones, coupled with infrastructure decay and rising cost of gas/diesel, is accelerating economic deterioration in areas meant to drive growth.

“We were promised that metering and reforms would reduce inefficiencies. But what we have now is a system that fails at the very basic — keeping the lights on,” says Sule Muktar, a policy analyst at a local energy consultancy.

Another energy expert at the Nasarawa State University, Keffi, Dr. Bulus Anag, said, “For a country where SMEs depend on power, it will be very uncharitable for the government not to take energy security seriously. If we are aiming to become a $1 trillion economy in the coming years, then energy is one area we must invest in and take very seriously.” 

“When even Abuja’s most prestigious commercial zones can’t guarantee power, what message are we sending to foreign investors, startup founders, or global tech companies eyeing Nigeria?” he asked.

Beyond the financial loss, there’s a psychological one. For business owners who invested in the location to be close to decision-makers, foreign embassies, and key institutions, Wuse 2 is fast becoming an expensive regret.