Can affect performance using many Context Provider in React?

Question

Option 1: Each Provider component contain its own useReducers

<Provider1\>
  <Provider2\>
    <Provider3\>
      /*...*/
      <ProviderN\>
        <App /\>
      </ProviderN\>
      /*...*/
    <Provider3\>
  </Provider\>
</Provider\>

or

Option 2: The Provider component contain one or many useReducers to control the app

<Provider\>
  <App /\>
</Provider\>

I am looking for the best way (Performance) to control the app lifecycle using only the React library.