Lagos State is taking charge of its power destiny. The Lagos State House of Assembly has organised a public hearing on a proposed State Electricity Bill 2024. This new law aims to revolutionize how Lagosians experience electricity by addressing longstanding challenges and fostering economic growth.
The bill, if passed, will establish a legal framework for a Lagos electricity market, separate from the national grid. This market will have its own commercial and technical regulations, allowing for a more competitive and efficient power sector within the state.
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Key features of the new bill
Creation of a Lagos Electricity Market: The bill proposes establishing a separate electricity market for Lagos, distinct from the national grid. This will allow for greater flexibility and competition in the power sector.
State Electrification Fund: A dedicated fund will be created to support electrification projects, especially in underserved areas.
Increased Role for Renewable Energy: The bill encourages the adoption of clean and renewable energy sources, promoting sustainability and reducing reliance on fossil fuels.
Consumer Protection: Stronger consumer protection measures will be in place to safeguard the rights of electricity consumers.
Improved Power Infrastructure: The bill focuses on modernizing the state’s electricity infrastructure to enhance efficiency and reliability.
A key feature of the bill is the creation of a state electrification fund. This fund will be used to invest in providing reliable electricity supply to underserved and unserved communities within Lagos. This could mean bringing power to areas that have never had it before, or improving the quality and consistency of supply in existing neighbourhoods.
Speaking at the event held in Ikeja, Sabur Oluwa, the chairman of the Lagos State House Committee on Energy and Mineral Resources, said the bill sought to provide the creation and administration of the Lagos electricity market.
According to Oluwa, the bill seeks to create a commercial and technical regulatory framework for the electricity market and set up the state electrification fund to ensure reliable electricity supply to the unserved and underserved areas in the state.
Oluwa mentioned that under the 1999 Constitution, which placed electricity on the concurrent list, the bill proposed to establish the Lagos State Electricity Regulatory Authority to oversee the electricity market in the state, ensuring efficient and sustainable electricity.
“We are going to create a Lagos State Electricity Agency to manage public electricity work and infrastructure, as well as the Lagos State Electrification Fund. These institutions will play a pivotal role in the delivery of reliable electricity to our 21st-century and underserved areas of Lagos State.
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“Through this initiative, we aim to bridge the gap in electricity supply and enhance the quality of life for all Lagosians. We understand that reliable electricity is not an option; it is a necessity. It is the backbone of economic growth, social development, and improvement of standards.
Importance of Lagos State to Nigeria’s economy
Lagos State accounts for about 30 percent of Nigeria’s national GDP and 50% of the non-oil GDP.
The State’s Electricity Policy document points out that this is powered by less than 1,000MW of electricity supply from the national grid delivered to the two electricity distribution companies (DisCos) in the State.
“In reality, Lagos is dependent almost entirely on a fleet of no less than 15,000MW of back-up generator capacity fuelled by expensive and heavily polluting distillates like fuel oil, petrol and diesel.
“No progressive and modern economy in the world has thrived in the face of such combination of electricity inadequacy and supply imbalance.”
Governor Babajide Sanwo-Olu said that growing critical sectors in the State is only possible with reliable access to electricity.
The policy document says that energy supply is currently the single biggest infrastructure and developmental challenge in the State.
“Lagos depends entirely on Nigeria’s national grid for its public electricity supply, as does the rest of the country.
“Through its two resident electricity distribution companies (DisCos) – Eko and Ikeja – it receives just about 1,000MW for an average of no more than 12 hours daily, ie, 12,000MWh, for a population exceeding 27 million spread over a compact land mass.”