The Lagos State Government has reiterated its commitment to reforming the electricity sector, targeting improved power supply, reduced energy costs and increased private-sector investment through regulatory reforms, infrastructure development and diversification of energy sources.
The government said the reforms were designed to establish a competitive and commercially viable electricity market capable of expanding access, improving service delivery and addressing the persistent energy challenges confronting businesses and households across the state.
Governor Babajide Sanwo-Olu, represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, stated this at the 2026 Lagos Energy Summit held at the Landmark Event Centre, Victoria Island, yesterday, where he described energy insecurity as a national emergency requiring urgent, coordinated and sustained action from both government and private-sector stakeholders.
Sanwo-Olu said reliable electricity was critical to Lagos’ economic growth, considering the state’s significant contribution to Nigeria’s commercial and industrial activities, stressing that businesses and households continued to bear the consequences of inadequate power supply through high energy costs and dependence on alternative sources.
According to him, the Federal Government’s enactment of the Electricity Act 2023 created opportunities for states to establish and regulate their electricity markets, allowing them to take greater responsibility for addressing their energy needs.
He noted that Lagos had taken advantage of the legislative framework through the enactment of the Lagos State Electricity Law in 2024 and the subsequent establishment of the Lagos State Electricity Regulatory Commission (LASERC).
The governor described the state electricity law as a defining milestone in the government’s efforts to create a more responsive and competitive electricity market, adding that LASERC was established to provide the institutional framework for regulation, licensing, consumer protection and market development.
He, however, maintained that the success of the reforms would not be measured by the number of laws enacted or policies announced but by the quality, reliability and affordability of electricity delivered to residents.
“These reforms reflect our determination to build an electricity market that is commercially viable, responsive to consumers and capable of attracting the investment required to expand access and improve service delivery. But let me be clear, legislation and regulatory institutions are only the foundation,” he said.
Sanwo-Olu stressed that energy insecurity had become an urgent national concern, arguing that inadequate electricity continued to undermine productivity, industrial development and the country’s ability to realise its economic potential.
He said the government must move beyond policy pronouncements and periodic engagements to implement practical measures capable of addressing the challenges confronting the power sector.
“For a state that drives a significant proportion of Nigeria’s commercial and industrial activity, reliable electricity is not a luxury; it is an economic necessity.
“Every manufacturer spending heavily on alternative power, every small business struggling with energy costs and every household yearning for dependable electricity reminds us why reforming our power sector cannot wait,” he stated.
The governor also identified private-sector investment as a major requirement for expanding electricity infrastructure, assuring investors, developers, financial institutions and energy companies of the opportunities available in Lagos.
He said the state’s population, commercial demand, industrial concentration and institutional commitment provided a strong foundation for investments in electricity generation, distribution and other components of the energy value chain.
However, he acknowledged that attracting private capital would require regulatory certainty, credible commercial arrangements and confidence in the market, while ensuring adequate protection for electricity consumers.
Sanwo-Olu also identified renewable energy, energy storage, metering, electric mobility and emerging technologies as important components of the state’s long-term energy strategy.
He said the government was particularly interested in supporting young engineers, researchers and entrepreneurs by creating opportunities for their innovations to attract investment, reach the market and address practical energy challenges.
Also speaking, the Permanent Secretary of the Ministry of Energy and Mineral Resources, Ibilola Kasunmu, disclosed that the state was targeting an additional two gigawatts of electricity supply by March 2027 through a combination of grid power, solar energy and embedded generation.
She explained that the government was exploring different sources of electricity to increase supply, noting that the additional capacity would not depend solely on power received from the national grid.
According to her, the state has a longer-term ambition of increasing its electricity capacity to six gigawatts, while identifying gas availability, diversified procurement arrangements and bankable power purchase agreements as critical requirements for achieving the target.
Kasunmu said gas supply was particularly important for developing gas-to-power plants, adding that the government needed to establish reliable procurement arrangements and commercial agreements capable of encouraging investors to commit resources to electricity projects.
She, however, identified inadequate transmission and distribution infrastructure as major obstacles to expanding electricity supply, warning that increased generation would have limited economic value if the existing infrastructure could not deliver the power to consumers.
She explained that even if electricity generation increased significantly, the capacity of transmission lines and distribution networks could prevent the additional power from reaching households and businesses.
According to her, the distribution infrastructure must also be sufficiently equipped to receive and distribute electricity transmitted from generation facilities, noting that the sector’s challenges extended beyond producing more megawatts.
Kasunmu also highlighted market liquidity, inadequate metering, poor revenue collection and weak settlement arrangements as issues requiring urgent attention.
She said effective metering would enable consumers to pay accurately for electricity consumed while ensuring that payments were transmitted through the electricity value chain to suppliers and service providers.
“A new megawatt only becomes economic value not only when it reaches the customer reliably, but also when it is paid for. Then it has economic value to the person that is generating it,” she said.
The permanent secretary called for a transition from dependence on a single electricity source to an integrated market incorporating gas-fired power plants, embedded generation, solar energy and energy storage systems.
She also advocated standardised power purchase agreements, transparent access charges, settlement guarantees and clearly defined risk-allocation arrangements to provide investors with greater confidence and predictability.
On consumer protection, Kasunmu disclosed that the ministry had established a customer forum to address electricity-related complaints in real time, noting that thousands of complaints were already being received.
She said the government was reviewing the complaints and consumer experience to better understand the challenges residents faced, stressing that electricity consumers remained central to the sustainability of the market because their payments ultimately supported investments and operations across the value chain.
She added that improving electricity supply must go hand in hand with measurable service delivery, effective complaint resolution and accountability among operators.