Lagos State is targeting to attract new investments as it sets machinery in motion towards the review of its Power Sector Reform Law of 2018.
The planned review of the law, which was enacted under the immediate past administration of Akinwunmi Ambode, BusinessDay gathered, is to improve accessibility to reliable and affordable electricity and attract the badly needed investment into the state’s energy sector.
Although the electricity supply need of Nigeria’s biggest commercial city is put at over 10,000 megawatts, the state currently gets about 1,000 megawatts from the national grid.
Reliable and affordable power supply is critical for economic growth, social development and attainment of the sustainable development goals.
Consequently, the state commissioner for Energy and Mineral Resources, Olalere Odusote, has asked the public to be involved in the law review process by submitting their papers and comments to the government ahead of a public hearing to be subsequently organised by the state legislature.
In document seen by BusinessDay, the papers and comments should be submitted on or before July 3rd 2020.
The state government had also recently carried out households survey of electricity usage in the state to enable it to determine supply pattern, volume of consumption, and the cost to consumers.
In Nigeria, electricity regulation is on the concurrent list of the constitution which gives the federal and state governments the authority to make laws that would improve electricity supply.
At the sub-national level, the constitution permits states to make laws with respect to electricity and the establishment in that state, of electric power stations; the generation, transmission and distribution of electricity to areas not covered by a national grid system within that state and the establishment within that state of any authority for the promotion and management of electric power stations established by the state.
The Federal Government has taken the lead by enacting the Electric Sector Power Reform Act, 2005 (ESPRA) and the Establishment of the Nigerian Electricity Regulatory Commission (NERC) expected to issue and enforce regulations to develop the sector.
Lagos State has not adequately reaped the expected benefits of the various regulations. In 2018, the Lagos State ministry of energy & mineral resources, which has the mandate to develop the sustainable energy strategies, policies and to promote an enabling environment to attract investments into the energy sector in the state.
Accordingly, the ministry through the Lagos House of Assembly enacted the Lagos State Electric Reform Law to support the development of the electricity sector in Lagos, which the state now seeks to review in a bid to drive investments into the state’s energy sector.
“We hereby invite relevant stakeholders and the general public to submit papers and comments stating the desired reviews and the implications of such reviews to improved access to reliable electricity in Lagos.
In addition, stakeholders are requested to share any other relevant electricity sector policies that would promote sustainable electricity access in the state,” said Odusote.
