November 12, 2024 — The Lagos State Government has outlined a substantial investment requirement of between $14 billion and $33 billion to meet its energy generation needs by 2030. This projection was revealed by Mr. Kamaldeen Balogun, General Manager of the Lagos State Electricity Board, at the 15th Ralph Alabi Memorial Lecture and the induction of new corporate members of the Nigerian Society of Engineers (NSE), Ikeja Chapter.
The event, themed “Opportunities in Emerging Power Sector: A Panacea for Economic Stability and Industrialisation,” focused on the critical role of innovative power solutions in driving economic growth and industrialisation.
According to Balogun, the investment figures were provided by the Lagos Bureau of Statistics, emphasizing energy supply as the state’s most pressing infrastructure challenge. “Lagos is committed to ensuring an adequate and reliable power supply through the Lagos Electricity Market,” he stated.
Current Energy Shortfall and Investment Opportunities
Currently, Lagos receives just 1,000 megawatts (MW) of electricity daily, which is available for about 12 hours. This falls significantly short of the state’s actual requirement of 9,000 MW. This energy gap presents extensive opportunities for investment across the entire power value chain, including in power generation, transmission, distribution, and retailing.
Balogun identified several key sectors within the power industry that are ripe for investment, including Independent Power Plants (IPPs), renewable energy (especially solar), off-grid and mini-grid solutions for underserved areas, and energy storage systems to enhance reliability. Emerging sectors such as electric vehicle infrastructure and waste-to-energy projects were also highlighted as having long-term potential.
Leveraging the 2023 Electricity Act
The 2023 Electricity Act, which empowers states to generate, transmit, and distribute electricity within their jurisdictions, was also discussed by Balogun. He described the Act as a game-changer for Lagos, providing a legal framework for the state to take significant steps toward improving power supply.
One of the flagship initiatives under this framework is the Lagos Electricity Market Implementation Plan, which aims to generate 3,000 MW of electricity within the next 30 months. The plan includes:
- Grid Modernisation: Upgrading existing infrastructure with smart technologies to improve reliability and efficiency.
- Renewable Energy Integration: Aiming to generate 1,000 MW of power from solar and off-grid solutions.
- Public-Private Partnerships (PPPs): Actively encouraging private sector investment in energy projects to expand Lagos’ power infrastructure.
Balogun also emphasized the importance of capacity building within the power sector, with a focus on training engineers, technicians, and craftsmen to support the growing demand for energy infrastructure.
Private Sector Involvement and Gas-Fired Power Plants
In addition to these initiatives, the Lagos State government is seeking private investors to develop gas-fired power plants aimed at addressing the city’s chronic electricity shortfall. The Ministry of Energy and Mineral Resources (MEMR), in collaboration with the Office of Public-Private Partnerships (OPPP), recently announced plans to generate up to 500 MW of electricity through the establishment of power plants across four designated hubs in Lagos.
Lagos, with a population of over 20 million, remains the largest metropolitan area in Africa and Nigeria’s economic powerhouse. However, the city’s energy demands far exceed the supply from the national grid. While the state requires more than 6,000 MW of electricity, the existing Distribution Companies (DisCos) provide less than 2,000 MW, even at peak periods.
As Lagos moves forward with these ambitious energy projects, it aims to close the gap between its power needs and the available supply, while also positioning itself as a leader in renewable energy and sustainable development in Nigeria.
