Lagos State, Nigeria’s commercial hub, faces a significant energy deficit, forcing residents and businesses to rely heavily on self-generated power, primarily through petrol and diesel generators. This reliance comes at a steep cost, both financially and environmentally. A recent study conducted by the Lagos State Ministry of Energy and Mineral Resources, in collaboration with Sustainable Energy for All (SEforALL), paints a stark picture of this dependence. The study reveals that approximately 4.5 million generators hum across the state, consuming a staggering 16 billion litres of fuel annually. This translates to an estimated expenditure of N14 trillion (based on N900/litre fuel price) by Lagosians each year, a sum that dwarfs the budgets of many nations. The environmental impact is equally alarming, with these generators emitting 38 million tonnes of carbon dioxide annually, a figure comparable to the total CO2 emissions of entire countries like Togo, Rwanda, and Gabon. This heavy reliance on generators highlights the chronic power shortages plaguing the state and the immense financial and environmental burden borne by its citizens.
The pervasiveness of generator usage in Lagos is underscored by the study’s findings. A significant majority, 72%, of households own at least one generator, while a staggering 94% of small businesses depend on these noisy and polluting machines for their operations. Even market clusters, vital hubs of economic activity, are not immune to this dependence, with 76% requiring generators to function. This widespread reliance on self-generated power points to a systemic failure in the electricity supply chain, leaving residents and businesses with little choice but to shoulder the burden of providing their own power. Factors contributing to this power deficit include vandalisation of power assets, chronic underinvestment in the sector, liquidity issues within the power industry, and the controversial practice of estimated billing, further exacerbating the challenges faced by consumers.
The Lagos State Government, recognizing the gravity of this energy crisis, is taking proactive steps to address the situation and transition towards a more sustainable and reliable power supply. The recently signed Electricity Act of 2023 empowers states to take control of their electricity markets, providing Lagos with the autonomy to pursue its own energy solutions. Governor Babajide Sanwo-Olu has subsequently signed the Lagos Electricity Law, paving the way for a diversified energy mix that incorporates solar, gas, hydro, and other clean energy sources. The state is actively soliciting expressions of interest for grid-scale solar projects, gas-fired power plants, and captive power initiatives, aiming to inject an additional 6 gigawatts of power into the state’s grid within the next three years.
The Lagos State government’s commitment to energy reform extends beyond large-scale power generation projects. Recognizing the need for energy efficiency and grid stability, the state is also pursuing the retrofitting of 22,000 streetlights across Lagos. This initiative will not only reduce pressure on the existing grid but also contribute to energy conservation efforts. The ultimate goal is to create a 24/7 economy powered by clean, reliable, and affordable energy, aligning with global climate goals, Nigeria’s energy transition objectives, and the state’s commitment to a sustainable future. This vision underscores the government’s determination to move away from the current unsustainable reliance on generators and towards a more modern and efficient energy infrastructure.
Governor Sanwo-Olu has expressed his concern over the continued struggle with inadequate electricity supply in Nigeria, emphasizing the shame of persistent power outages in the 21st century. He believes that access to reliable electricity is a fundamental right, particularly in a rapidly developing megacity like Lagos. The governor’s vision is not just about increasing energy production; it’s about ensuring affordability, a critical factor for the majority of Lagos residents. This commitment to affordability underscores the social equity dimension of the state’s energy plan. He further emphasises the need for a swift turnaround in the energy sector. The Lagos State Government’s proactive approach highlights its commitment to tackling the energy crisis head-on and providing its citizens with the reliable power they need to thrive.
Experts, such as former Minister of Power Barth Nnaji, advocate for leveraging Nigeria’s abundant natural gas reserves to address the nation’s power deficit. Nnaji points to Algeria, a country with significantly smaller gas reserves than Nigeria, as an example of how natural gas can be effectively utilized to achieve universal electricity access. He stresses that Nigeria’s vast gas reserves, estimated at 210.5 trillion cubic feet, position the country well to fuel its power plants and drive economic growth. The key, according to Nnaji, lies in effectively harnessing these resources to generate electricity and support the country’s development. He argues that adequate energy supply is essential for GDP growth and national prosperity, emphasizing the critical link between energy and economic development. His insights underscore the importance of a strategic approach to energy planning that capitalizes on Nigeria’s natural resources to achieve sustainable and inclusive growth.
