This information was shared by Mr. Kamaldeen Balogun, General Manager of the Lagos State Electricity Board, at the 15th Ralph Alabi Memorial Lecture and the induction ceremony for new corporate members of the Nigerian Society of Engineers (NSE) Ikeja Chapter.
The event, titled “Opportunities in Emerging Power Sector: A Panacea for Economic Stability and Industrialisation,” emphasized the critical role of innovative approaches in the power sector for fostering economic development and industrial growth.
During his keynote speech, Balogun noted that the Lagos Bureau of Statistics provided the investment estimates, highlighting energy supply as the most pressing infrastructure and development challenge facing Lagos State.
“Lagos State is poised to ensure adequate and reliable power supply to its citizens through the Lagos Electricity Market,” he said.
Lagos currently receives a mere 1,000 megawatts of electricity each day, which is accessible for an average of 12 hours, while the state actually requires 9,000 megawatts.
Opportunities in the Power Sector
Balogun emphasized that this power shortfall creates significant investment opportunities across the generation, transmission, distribution, and retail sectors of the power value chain. He pointed out that the Lagos power sector is ripe for investments in Independent Power Plants (IPPs), renewable energy sources—especially solar—off-grid and mini-grid solutions for underserved communities, and energy storage systems to enhance reliability. “Emerging areas such as electric vehicle infrastructure and waste-to-energy initiatives present substantial long-term potential,” Balogun noted.
Utilizing the 2023 Electricity Act
He also underscored the importance of the 2023 Electricity Act, which grants states the authority to generate, transmit, and distribute energy within their territories. He stated that this legal framework enables Lagos to take decisive actions to enhance its power supply through the Lagos Electricity Market.
“The Lagos Electricity Market Implementation Plan is a key initiative to enhance power generation and distribution, with a target to generate 3,000 megawatts of electricity within the next 30 months,” he said.
Balogun outlined that the strategy places emphasis on:
Grid Modernization: Leveraging advanced technologies to enhance infrastructure reliability and efficiency.
Renewable Energy Integration: Targeting 1,000 megawatts of solar and off-grid power to diversify the energy portfolio.
Public-Private Partnerships (PPPs): Fostering private sector collaboration to finance energy initiatives and expand infrastructure.
“It includes a strong emphasis on capacity building, ensuring that engineers, technicians, and craftsmen in the power sector receive adequate training,” Balogun noted.
The Lagos State Government is actively seeking private sector investment in gas-fired power plants to address the ongoing electricity shortages in the region.
This initiative, unveiled by the Ministry of Energy and Mineral Resources (MEMR) in collaboration with the Office of Public-Private Partnerships (OPPP), aims to produce up to 500MW of electricity across four designated hubs within the state.
With a population exceeding 20 million, Lagos stands as Africa’s largest metropolitan area and serves as Nigeria’s economic center.
Nevertheless, the city's energy demands considerably exceed the supply that the national grid can provide. The government has acknowledged that while Lagos requires over 6,000 MW of electricity, the current Distribution Companies (DisCos) supply less than 2,000 MW during peak periods.