Electricity is rarely obtained from a single source in Nigeria’s business environment, from factories to hospitals.
Instead, companies use a combination of battery storage, diesel generators, solar arrays, and grid supply.
The absence of coordination between different systems frequently results in inefficiencies, increased costs, and frequent disruptions, even while this multi-source method keeps operations operating.
To change that, Tobechukwu Arize, David Adebiyi, Joses Williams, and Eghonghon-aye Eigbe created PowerLabs, a climate-tech firm based in Lagos, in January 2023.
The company is tackling a new issue: how to better manage the power that already exists, instead of concentrating only on expanding the supply of electricity.
“There are two types of energy systems,” Arize, the company’s CEO, said in an interview with TechCabal on April 2, 2026.
“The centralised system, which is the grid supplying power to users, and then decentralised systems where you have generators, solar, inverters, batteries. What is happening now is that these distributed energy resources are becoming critical to ensuring stability and diversity of power.”
At the heart of its solution is what it calls a “intelligence layer” for energy.
The platform combines multiple power sources, grid electricity, diesel, solar, and storage, into a unified, coordinated system.
PowerLabs combines embedded hardware and software to allow these sources to function as a single adaptable network rather than isolated components.
The solution is based on IoT-enabled sensors installed at client sites.
These sensors continuously collect information about energy availability, usage patterns, and operating needs.
That data is then processed by software, which calculates the most efficient way to allocate power in real time.
Whether it’s moving from diesel to solar to save money or tapping into battery reserves during outages, the platform makes these decisions automatically.
The idea is simple yet effective: minimize waste, slash energy bills, and increase dependability without adding more power generation.
PowerLabs: A timely solution for a stressed energy system in Nigeria
PowerLabs’ approach is evolving at a time when energy concerns are growing both locally and worldwide. Rising demand, fueled in part by the growth of artificial intelligence and digital infrastructure, has put further strain on already weak grids.
At the same time, energy prices continue to rise, while climate-related disruptions make supply less predictable.
Although the country’s installed capacity exceeds 13,000 megawatts, actual power generation is much lower due to constraints such as gas shortages, aging infrastructure, and periodic grid breakdowns.
As a result, businesses must cover the gap with alternative energy sources.
The financial impact is significant. In 2024, Nigeria’s manufacturing industry spent ₦1.11 trillion ($804.07 million) on alternative energy, up 42% from the previous year.
For many businesses, energy has become one of their most significant operational expenses.
PowerLabs first focuses on high-demand areas such as manufacturing, healthcare, banking, and telecommunications, where inefficiencies are most costly.
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In hospitals, for example, critical care units require continual electricity. In industries, energy optimization has a direct impact on production efficiency and profitability.
In contrast, data centers and telecom providers rely on regular uptime to deliver services.
The broader power industry backdrop emphasizes the importance of PowerLabs’ approach.
Nigeria’s power infrastructure continues to experience structural and financial issues, including delayed payments along the value chain, eroding investor trust.
To stabilize the sector, the president of the country, Bola Tinubu, approved a ₦3.3 trillion ($2.39 billion) intervention on April 5, 2026, to settle debts owing to generation companies and gas suppliers.
Despite the hurdles, some progress has been made. By December 2025, distribution companies expect to earn more than ₦210 billion ($152.12 million) every month.
Metering coverage has also expanded, reaching over 7 million subscribers, or 57% of the total.
However, the grid remains severely strained, with an estimated 90% load factor, which means that practically all available electricity is consumed instantly.
This leaves little room for flexibility or expansion, emphasizing the importance of efficient energy management.
