The Lagos State Government has revealed that residents spend approximately N14 trillion annually on fuel for power generators.
According to Biodun Ogunleye, Commissioner for Energy and Mineral Resources, the state has an estimated 4.5 million generators across homes, offices, and market clusters, consuming 16 billion liters of fuel each year.
The commissioner stated that 72% of households own at least one generator, while 94% of small businesses and 76% of market clusters rely on gensets due to inadequate power supply. These generators consume 16 billion liters of fuel annually, emitting 38 million tonnes of CO2 and producing 21,000 megawatts of power “privately, inefficiently, and expensively”.
To address this challenge, the Lagos State Government has begun democratizing power in Nigeria. With the signing of the Electricity Act in 2023, the state can now take full control of its electricity market. Governor Babajide Sanwo-Olu has signed the Lagos Electricity Law, enabling the state to diversify its energy mix by embracing solar, gas, hydro, and other clean fuels.
The government aims to inject 6 GW of power into Lagos within three years through gas-fired, grid-scale solar, and captive power projects. Additionally, the state plans to retrofit 22,000 streetlights across the state to reduce grid pressure and improve energy efficiency.
Former Minister of Power, Barth Nnaji, emphasized the need to utilize Nigeria’s abundant gas reserves to power the country. He stated that Nigeria’s lack of access to electricity is unacceptable in the 21st century and urged the government to develop power plants to support economic growth.
