Lagos Residents Spend ₦14tn Annually on Generator Fuel

  • Lagos residents spend about ₦14 trillion annually on fuel for 4.5 million generators, which consume 16 billion litres and emit 38 million tonnes of CO.
  • The Lagos State Government targets 6 GW of new power from solar, gas, and captive projects within three years to build a 24/7, sustainable economy.

Lagos State Commissioner for Energy and Mineral Resources Biodun Ogunleye has revealed that Lagos residents spend an estimated ₦14 trillion annually to fuel their private power generators. He made the disclosure yesterday at the opening session of the Lagos Energy Summit, themed “The Journey to Energy for All.”

In his welcome address, Ogunleye said the summit aims to inspire reflection and recommitment to delivering reliable energy to every household and business in the state. He lamented the persistent blackouts that have plagued Lagos for decades, forcing millions to rely on costly, self-generated power.

“Lagos has an estimated 4.5 million generators across homes, market clusters, and MSMEs. These generators consume about 16 billion litres of fuel annually, costing residents nearly ₦14 trillion, based on today’s average fuel price of ₦900 per litre,” he said.

The commissioner cited findings from a joint Energy Access Diagnostic Study by the Ministry of Sustainable Energy for All (SEforALL), which exposed the city’s heavy dependence on inefficient energy sources. He explained that the widespread use of generators also emits approximately 38 million tonnes of CO₂ each year, surpassing the annual emissions of countries like Togo, Rwanda, and Gabon.

Ogunleye added, “These generators produce around 21,000 megawatts of power privately, inefficiently, and expensively.” According to the study, 72% of households own at least one generator, 94% of small businesses depend on them, and 76% of market clusters cannot function without them.

He blamed current affairs on vandalised infrastructure, chronic underinvestment, systemic liquidity issues, and the scourge of estimated billing. “The people have carried the burden of power failure for far too long,” he said.

Ogunleye highlighted that Lagos has already begun taking bold steps toward transforming its power sector. Following President Bola Tinubu’s signing of the Electricity Act 2023, states now have the legal backing to take charge of their electricity markets. With Governor Babajide Sanwo-Olu’s signing of the Lagos Electricity Law, the state is pushing for an energy mix that includes solar, gas, hydro, and other clean sources.

“We are actively seeking Expressions of Interest for gas-fired, grid-scale solar, and captive power projects that will inject 6,000 MW into Lagos within the next three years,” he disclosed. He also announced plans to retrofit 22,000 streetlights across the state to ease pressure on the national grid and enhance energy efficiency.

Governor Sanwo-Olu, in his remarks, condemned the country’s lingering electricity issues. “It’s a shame that homes still live in darkness in this modern age. That should not be the case in the 21st century,” he said.

He reaffirmed Lagos’s commitment to creating a 24/7 economy powered by clean, reliable, and affordable energy. “The word ‘affordability’ is critical,” he emphasised, aligning Lagos’s vision with global climate goals and Nigeria’s energy transition plans.

In the keynote address, former Minister of Power Barth Nnaji called on the Federal Government to harness Nigeria’s vast natural gas reserves to drive energy generation.

“Nigeria has about 210.5 trillion cubic feet of gas, ranking among the top 10 globally. Yet millions still live without electricity. With fewer gas resources, Algeria powers all its homes,” Nnaji noted.

He warned that Nigeria would struggle to boost GDP and economic development if it failed to utilise its gas resources for power plants. “As the economy grows, energy supply must grow with it,” he concluded.

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