One thing we noticed about Nigeria's energy market this week. The government said something big. Electricity subsidies will stop in 2026. In the last 12 months alone, the government spent ₦1.98 trillion keeping electricity prices low for everyone Power generation companies are owed ₦6.8 trillion. Every single month, over ₦200 billion goes out the door just on subsidies. It is becoming difficult to keep up with that level of spending. But here is what really stood out The conversation has changed. Nobody is arguing about whether tariffs should reflect the true cost of electricity anymore. That ship has sailed. The real question now is simple. What happens to the businesses and people stuck in the middle of this change? The Manufacturers Association of Nigeria is already raising the alarm. They say constant price increases are making it harder for Nigerian companies to compete. About 10% of businesses that depend heavily on electricity shut down last year. We are talking about cold room operators,welders, factory owners. Real people losing their livelihoods. And this is the part that matters most for any foreign energy company looking at Nigeria. When electricity prices reflect actual costs, investors feel more confident. Money flows better through the system. The sector becomes something you can build a business around. They are also taking real steps. A ₦4 trillion bond program to pay off old debts. A new company called GAMCO to fix the problem of power plants that generate electricity but cannot send it anywhere. Good moves. But the reality on the ground is complicated. There is no enough gas to power the plants. The transmission network cannot carry all the electricity being produced. Small businesses that should benefit from a better power sector are barely surviving right now. This is what makes Nigeria tricky. Two things are happening at the same time. The country is fixing its power sector. And the country is also watching businesses struggle because of those very fixes. For global energy companies, there is a real opportunity here. #Solar ,#Energystorage #Energyefficiencyproducts People need these things badly and the demand is rising fast But if If you come into Nigeria without understanding how things actually work on the ground, you will run into problems you did not plan for. At JK Consulting Ltd , we help global energy companies understand the market, enter the right way, and grow. Not with theory, but with real insight from people working in this space. If you have been watching Nigeria's energy sector from outside and wondering what it all means for your business, reach out to us energy@jkconsultingltd.com Let us have a conversation #NigeriaEnergy #PowerSector #ElectricityTariffs #EnergyTransition #AfricaEnergy #BusinessInNigeria #SMEs #Nigeriaenergymarket #Sustainability
