Lagos has earmarked over N100 billion to drive the state electricity market, Biodun Ogunleye, the state Commissioner for Energy and Mineral Resources revealed at a stakeholder roundtable in Lagos Tuesday.
Ogunleye said the state government is committed to making the business environment conducive for investors to tap into the state’s electricity initiative.
“…to show you that we are not joking, in our current budget, the state government has made available over N100 million for this to happen. That is another assurance that we are not joking,” he said.
However, Ogunleye revealed that the state will not be generating power or being involved in the business other than to make the environment conducive for private investors.
He added: “Now, it is the private sector that needs to take this seriously. Because the state government is not going to produce one kilowatt of electricity for anybody.
“But when you have one kilowatt of electricity (as a private investor), rest assured that we will provide the environment for you to sell and make reasonable returns.”
Last month, the Nigerian Electricity Regulatory Commission (NERC) issued an order to transfer regulatory oversight of the electricity market in Lagos State from the Commission to the Lagos State Electricity Regulatory Commission (LASERC).
This was done in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
With this, these states have established their electricity regulatory agencies and will now oversee the electricity markets within their jurisdictions.
The Commission in a transfer Order seen on Thursday, stated that the Government of Lagos State has complied with the conditions precedent in the laws by duly notifying NERC and requested the transfer of regulatory oversight of the intrastate electricity market in Lagos State.
Lagos state, the fifth-largest economy in Africa aims to boost power generation to 6 gigawatts within the next three years under the newly enacted state electricity law, Ogunleye said.
Ogunleye highlighted that these ambitious goals would be realised by establishing robust market institutions, implementing effective market mechanisms, enhancing value chain capacities, and attracting significant investment into the energy sector.
The commissioner strongly committed to safeguarding market revenues to ensure all stakeholders fulfil their obligations. He also noted plans for 100 per cent metering across the state and establishing a contract-driven energy market in Lagos.
Ogunleye revealed that the government is actively working to secure the necessary gas allocations, having already submitted the appropriate applications to the relevant authorities.
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