
What is the economic impact of events in Nigeria? Is the country gaining revenue despite the electricity costs to host one? We will answer that in a short moment.
Nigeria, which has a population of over 200 million people, has long struggled with a disparity between electricity demand and supply. By June 2024, the country’s electricity production was reported to be 8,846 gigawatt-hours (GWh), according to CEIC. To put that into perspective, the amount produced could supply electricity to about 8.8 million average Nigerian households for a month. This is nowhere near enough to satisfy the full population living in a country dealing with an inconsistent power supply.
It is true that there have been significant investments made in the energy sector. One of them is the $6.7 billion allocation in 2024 to bolster clean energy projects and federal initiatives. However, more efforts are still needed to ensure that power supply becomes stable.
What Factors Are Affecting Steady Electricity Supply in Nigeria?

According to a 2021 publication, there are multiple factors that could be causing this. One major reason for the power problems in Nigeria is that the infrastructure, like power plants and power lines, is old and often breaks down. There’s just not enough money being spent to fix and upgrade these systems.
Another issue is poor management and corruption within the electricity sector. Funds meant for improving the system often get misused, and this will in turn make proper maintenance difficult to achieve. Finally, technical problems such as theft and vandalism of equipment also cause power outages.
Can Inconsistent Power Supply Affect Events in Nigeria?

Large events in Nigeria, such as concerts, weddings, exhibitions, festivals and political rallies, which usually require reliable power for lighting, sound systems, and other essential equipment, can indeed be affected. In fact, the frequent power outages and national grid’s unreliability leads many event organizers to seek alternative power sources.
Some organizers now rely heavily on diesel-powered generators. However, while these generators do provide the necessary power temporarily, they come with their own set of challenges. Two common issues are the high operational costs and environmental concerns. The noise and air pollution caused by generators are quite problematic, especially in densely populated areas where events are typically held.
How Electricity Usage for Events Affects the Nigerian Economy

The economic impact of electricity usage for both indoor and outdoor events in Nigeria is multifaceted. Depending on the type, scale, and duration, concerts can actually consume significant amounts of electricity. When substantial energy is required, the local power grid can get strained. Utility companies may be forced to use more expensive sources of power or invest in temporary infrastructure to meet demand. This can result in higher electricity rates for everyone in the area, not just for the duration of the event but potentially longer if the infrastructure needs repair or upgrades afterward.
However, in their own way, large events can contribute to the economy by creating jobs, boosting local businesses, and attracting tourism. Vendors, suppliers, and service providers benefit from the influx of attendees, leading to increased economic activities in the host communities. It could be people spending on food, accommodation, transportation, or entertainment. Furthermore, high-profile events can put Nigerian cities on the map, especially when they attract international visitors and even obtain investments.
While direct revenue from electricity consumption may not be substantial, the broader economic benefits can easily be noted. Last year, Punch Nigeria reported that the Nigerian Electricity Regulatory Commission released data analysis showing that Distribution Companies (DISCOs) collected ₦887.86 billion in revenue from electricity usage between the months of January and July 2024. How much revenue could be gained if the country’s electricity infrastructure is properly managed?
Currently, Nigeria looks like it is leaning towards adopting sustainable energy solutions. Solar power, for instance, is becoming increasingly popular as it reduces reliance on generators, cuts costs in the long term, and minimizes environmental impact. Government and private sector initiatives are also promoting the use of renewable energy, which can be a game-changer for the events industry.