Lagos, A’Ibom, Rivers, Others Seeks $10bn Power Sector Investors

Lagos, Akwa Ibom, Rivers, and other states have moved to create suitable structures for the creation of state regulatory commissions and licensing of investors interested in spending about $10 billion in the sector in response to the proposed amendment to Nigeria’s Electricity Act.

Prior to the President Muhammadu Buhari-proposed amendment, the power industry was included on the Federal Government’s Exclusive List, which barred states from making investments and controlling the nation’s generation, transmission, and distribution operations.

Vanguard’s checks showed that the exclusion led to low investment and the provision of sufficient energy to consumers.

Lagos needs to generate more power – GOVERNOR

The governor of Lagos State, Babajide Sanwoolu, noted that the proposed amendment remained a welcomed development as it would enable Lagos generate additional power targeted at meeting rising demand.

In the Lagos State Electricity Policy, obtained by Vanguard, yesterday, the governor stated: Lagos State is the commercial centre of the country with a considerable number of manufacturing and service industries. 

“Lagos State accounts for about 30% of the national GDP and 50% of the non-oil GDP. This is powered by less than 1,000 megawatts 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 15,000 MW of backup 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 a combination of electricity inadequacy and supply imbalance.

“Making Lagos a 21st Century Economy”, a key component of our T.H.E.M.E.S. agenda, is strategically aimed at growing the critical sectors in the State which is only possible with reliable access to electricity. Lagos State has resolved to drive a new Policy and Strategic Framework that will significantly improve the viability of investments in the Lagos State Electricity Market. The State Government will take direct responsibility for developing, growing, and regulating a Lagos Electricity Market as prescribed in the 1999 Constitution (amended).”

Similarly, in a telephone interview with Vanguard, the Commissioner for Energy and Natural Resources, Lagos State, Olalere Odusote, said the state had been preparing for this immediately after the governor, Babajide Sanwoolu, came into office because of his administration’s belief that it would impact the sector and nation’s economy.

He said the state was delighted that the House of Representatives and the Senate were working on the passage of the Act before the end of President Muhammadu Buhari-led administration.

The commissioner said: “You are no doubt aware that Lagos has been preparing for this since Mr. Sanwo Olu assumed office. The Lagos electricity law to establish the regulatory agency as well as a rural electrification agency is at the Lagos House of Assembly and is expected to be passed soon.”