- Governor Babajide Sanwo-Olu has said his government has been working towards the development of the Lagos Electricity Market
- The Lagos state Electricity Market will increase electricity access, create jobs and attract investments
- Experts believe the development of state electricity markets will boost businesses in the states.
Lagos State Governor, Babajide Sanwo-Olu, has said that the constitutional amendment granting states the power to generate, transmit and distribute electricity has helped Lagos state in its quest to develop the Lagos Electricity Market. He also said the Lagos Electricity Market will increase investments and create jobs.
The Governor, who just won his reelection bid, stated this via his official Twitter account on Tuesday, March 21.
According to him, the Constitutional Alteration Bill No. 33, which was recently signed by President Muhammadu Buhari, is a historic move that grants Lagos state the authority to regulate electricity generation, transmission, and distribution. A part of his statement read:
- “This will create a Lagos Electricity Market, leading to increased access to electricity, investments and job opportunities. The new bills will promote efficiency, leading to better service delivery.
- “We have been preparing for this by launching an Electricity Policy, publishing our off-grid strategy, presenting our Integrated Resource Plan, and drafting a law to establish the Lagos Electricity Market.
- “We are committed to achieving 1 gigawatt (GW) of solar energy in Lagos by 2030 and have engaged with the World Bank for suitable funding. With the creation of the Lagos Electricity Market, we will fulfil our potential as Africa’s model mega city.”
Implication for businesses in Lagos state
Speaking to Nairametrics, Power sector Analyst, Bayode Akomolafe, said the amendment and follow-up by states are good news for businesses and end users. This is because it is an invitation of new players to the “party” which will toughen competition for improved service delivery and possibly cost.
He however cautions that businesses should not expect major changes immediately as the impact of the amendment may not be felt within the next 12 months. More importantly, business leaders, organizations, and labour unions can now hold the state government accountable in addition to the national government for any electricity debacle.
What you should know
On March 17, President Buhari signed the constitutional amendment to grant states the power to generate transmit and distribute electricity. The policy will lead to the development of states’ electricity markets and will also see the creation of more distribution and generation companies under states.
Experts have told Nairametrics that the amendment will increase metering for new connections as well as enable the decentralization of power. Experts also believe that with the amendment, states will have the power to utilize the electricity resources in their states for electricity generation, thereby contributing to their internally generated revenue (IGR).