Award-winning Nigerian filmmaker Kunle Afolayan has publicly detailed a crippling operational reality: his production company now spends a staggering ₦11 million solely on fuel every four to five weeks. This figure provides a high-profile, concrete example of the severe financial pressures facing Nigerian businesses forced to rely on independent power generation.
The Diesel Price Shock
The extraordinary expenditure is directly linked to the soaring price of diesel, which has escalated to approximately ₦1,500 per litre. This marks a dramatic increase of roughly 50% from the ₦995-₦1,000 per litre price seen just days prior. Such volatility in the energy market creates immense planning uncertainty for industries across the country, particularly in manufacturing, media, and hospitality, which depend on diesel generators to circumvent the nation's unreliable public power grid.
A Compounded Energy Crisis
The surge in diesel costs coincides with significant instability in the petrol market. The Dangote Petroleum Refinery recently raised the gantry price of Premium Motor Spirit (PMS), or petrol, for the third time in a single week. These consecutive price hikes for both major fuels indicate broader pressures within Nigeria's domestic refining and distribution sectors, placing a compounded burden on transportation and logistics costs nationwide.
Impact on Creativity and Growth
Afolayan's revelation underscores how critical infrastructure deficits translate directly into prohibitive business overheads. A film production company requires constant electricity for lighting, editing suites, and other critical equipment. The ₦11 million monthly fuel bill represents capital that is diverted from core business growth—investment in talent development, equipment upgrades, or new creative projects is stifled, threatening the vitality of Nigeria's vibrant film industry, Nollywood.
A Systemic Economic Challenge
This situation is not isolated to the entertainment sector but reflects a systemic economic challenge. High energy costs are a primary driver of inflation and reduce the competitiveness of Nigerian businesses. Afolayan's statement serves as a powerful warning: without stability in energy supply and pricing, operational sustainability for a wide range of enterprises remains under severe threat.
