The bank disclosed this in its latest Africa Trade Barometer report.

It, however, added that the cost excludes spending on off-grid generators.

Standard Bank pointed out businesses in Nigeria spend $22 billion annually on fuel to power generators, thus pushing up operational costs.

The report read: “Economic losses arising from Nigeria’s electricity shortages are estimated to be USD 26 billion annually, without accounting for spending on fuel for off-grid generators, which is estimated to be a further USD 22 billion.

“In Nigeria, surveyed businesses must contend with a national grid that frequently collapses as it fails to meet a daily peak demand which is nearly four times its generation capacity.

“Across the 10 African markets, power supply infrastructure remains the most severe obstacle to surveyed businesses’ operations.

“It is reported as one of the most poorly perceived infrastructural attributes as well as the one presenting the most severe obstacle to business operations.

“Blackouts cause a downtime of production, risk the quality of goods that require controlled environments, impact water supply, and affect telecommunications infrastructure which businesses may rely on for payments. The result is reduced sales and income.”

Nigeria has perhaps the worst power supply system in Africa with prolonged blackout a common feature across cities in Africa”s biggest economy.

The country’s national grid collapsed three times last week and eighth time this year alone.