The Lagos State Government, in collaboration with the organised private sector, has outlined a joint strategy to strengthen electricity supply as Nigeria’s power market undergoes decentralisation under the Electricity Act.
The initiative was discussed during the Lagos Chamber of Commerce and Industry (LCCI) Power Sector Conference, where stakeholders highlighted both the opportunities and challenges presented by the reforms.
Officials at the conference noted that while the decentralised market structure allows for state-led solutions, it has also revealed persistent weaknesses in the power value chain that continue to undermine efficiency. Biodun Ogunleye, Lagos Commissioner for Energy and Mineral Resources, represented by Chief Technical Officer Ogunade Hamed, stated that the state is implementing a decentralised market structure anchored on the Lagos Electricity Law, the Lagos State Electricity Regulatory Commission (LASERC), and the Integrated Resource Plan.
Ogunleye emphasised that Lagos is focusing on infrastructure renewal, commercial sustainability, and coordinated regulation to build a power market capable of supporting industrial growth. “We cannot deliver reliability on infrastructure designed for a smaller population and an entirely different economy,” he said, noting that the grid must evolve to meet the state’s growing economic and demographic demands.
The commissioner highlighted ongoing initiatives, including solar retrofits for 42,000 streetlights, promotion of embedded generation in industrial clusters, and regulatory frameworks for mini-grids and hybrid energy systems. He also called for stronger collaboration among operators, investors, and regulators, stressing that the sector must break free from outdated practices to achieve meaningful progress.
Gabriel Idahosa, LCCI President and Chairman of Council, noted that decentralisation offers a unique chance to redesign the power sector for efficiency but warned of significant risks if regulatory frameworks and investor confidence are not harmonised. He listed persistent challenges such as unstable gas supply, limited generation, weak transmission, and fragile distribution networks as barriers that must be addressed to deliver tangible outcomes.
Also speaking, Olufemi Bakare, Chairman of the LCCI Power Group, stressed that Nigeria is at a critical point in its energy transition. He noted that while reforms have encouraged private sector participation, infrastructure deficits and regulatory inconsistencies remain key obstacles. “Infrastructure optimisation is now an indispensable priority if Nigeria is to unlock generation, transmission and distribution capacity,” he said, underscoring the importance of the joint strategy for a reliable and sustainable power system.
