During a one-day public hearing on the bill, held at the Lagos State House of Assembly complex on July 10, the state Commissioner for Energy and Mineral Resources, Mr Biodun Ogunleye, assured Lagos residents that there would be quality electricity for consumers within two years of the state electricity bill becoming a law.
Lagos State is set to revolutionize its electricity supply with the new Lagos State Electricity Bill 2024, currently under consideration by the state House of Assembly. The bill is expected to end the frequent blackouts that have plagued the state and provide a more stable and reliable power supply.
Late Wednesday (July 10) night, Mr Ogunleye noted in a LinkedIn post that the electricity bill is designed to address the state’s electricity challenges. He wrote that despite a population of 27 million, Lagos only receives around 1000MW for an average of 12 hours daily sustainably, highlighting the need for improvements.
He wrote further: “The 21-part Bill outlines roles for the Lagos State Government and the Ministry of Energy. It establishes the Lagos State Electricity Regulatory Commission (LSERC) and covers licensing, tariff regulations, market standards, consumer protection, renewable energy, and the Lagos State Electrification Agency.”
According to the News Agency of Nigeria (NAN), the proposed legislation seeks to repeal the Lagos State Power Sector Reform Law of 2018 and establish a comprehensive framework for creating and administrating the Lagos electricity market.
The Foundation
The 2023 Electricity Act has given states the right to generate, transmit, and distribute electricity and explore all energy sources, including renewable energy. Thus, all states can work to establish their market framework alongside their regulatory commission. As of June 2024, Enugu, Ekiti, and Imo states have established their market frameworks and received permission to have their regulatory commissions.
More details on what the Lagos Energy Commssioner said
The urgency of this legislative push is underscored by the national grid’s recurring failures. In his presentation at the Assembly complex, Ogunleye emphasized that if the bill is passed into law, the Lagos State government will have the authority to generate, transmit, and distribute electricity directly to end-users.
“All electricity users in the state will have access to quality electricity within two years of signing the bill into law,” Ogunlewe stated.
He highlighted that the bill’s passage marks the beginning of a promised revolution by Governor Babajide Sanwo-Olu to transform the state’s power infrastructure. Ogunlewe elaborated on the benefits, noting, “We are going to witness a state grid that operates independently of the national grid, avoiding the challenges that come from relying on a single source.”
Ogunlewe outlined key provisions in the bill, including the entry of new operators into the market and a focus on environmental sustainability. He noted that this bill would resolve issues hindering operators’ businesses, paving the way for Lagos to become a global centre of excellence in energy management.
“I believe this bill will make the state the global centre of excellence where everybody is carried along,” he said.
The commissioner pointed to the state government’s success in ensuring that all its Class A roads are lit, with most Class B roads also illuminated. Currently, about 20,000 street lighting poles are operational across Lagos.
Regarding rural electrification, Biodun Ogunleye mentioned that the government plans to implement interventions via off-grid and macro-grid platforms to ensure comprehensive coverage. He also emphasized the state’s commitment to integrating alternative energy sources into its power mix.
“At the centre of Governor Babajide Sanwo-Olu’s strategy is the immediate sign-off of nothing less than 1,000 megawatts of non-renewable energy capacity coming into the market,” he said.
This shift represents a significant departure from the past, where reliance on fossil fuels often led to system collapses. “We will see a power sector with a better energy mix. It is not going to be fossil fuel alone,” Ogunleye asserted.
Biodun Ogunleye expressed optimism about the bill’s third reading as the legislative process progressed. He noted that the committee responsible for the bill would consider feedback from stakeholders to refine and finalize the legislation.