Lagos Targets 3.5GW Power Supply as Government Moves to End Persistent Blackouts
The Lagos State Government has intensified efforts to address the state’s persistent electricity challenges, with plans to increase available power supply to about 3.5 gigawatts.
The government said the focus is no longer solely on generating more electricity but on creating a reliable, sustainable and commercially viable electricity market that can meet the needs of residents and businesses.
Speaking at a town hall meeting, the Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Dr Rilwan Babalola, said Lagos and Nigeria must transition from a system heavily dependent on government intervention to one driven by sustainable investment and efficient market structures.
Babalola said the proposed Clean Lagos Electricity Market (CLEM) could help transform Lagos’ large electricity demand into an organised and investible market.
He explained that the model would involve aggregating electricity demand, establishing bilateral contracts, ensuring open access to infrastructure, guaranteeing payments and creating transparent settlement mechanisms.
According to him, the initial 500MW CLEM project would serve as a pilot to demonstrate that electricity could be generated, transmitted, reliably supplied, properly metered and paid for before the model is expanded.
He said stakeholders would need to clearly identify electricity consumers, sources of power and gas, available network capacity, appropriate tariffs and an effective payment system covering generators, network operators and gas suppliers.
Babalola also highlighted the opportunities created by recent changes to Nigeria’s electricity framework, including constitutional amendments and the Electricity Act, which allow states to establish and regulate their own electricity markets.
He, however, warned that the decentralisation of the sector should not result in unnecessary fragmentation.
He stressed the importance of coordination between state electricity markets, the Nigerian Electricity Regulatory Commission, interstate electricity trading and the national transmission network.
Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the state organised the town hall to tackle what he described as the longstanding “culture of blackout” in Lagos.
Ogunleye said the state had undertaken studies and brought together key stakeholders to identify the major obstacles affecting electricity supply and develop practical solutions.
He disclosed that Lagos currently receives less than one gigawatt of electricity from the national grid, despite the Transmission Company of Nigeria having the capacity to transmit approximately 3.5GW.
The commissioner said the state was working to secure an additional 2GW of electricity as part of its broader strategy to increase supply and improve reliability.
The initiative is expected to support economic activities, reduce dependence on unstable electricity supply and provide a stronger foundation for businesses and households across Lagos.
The government said achieving the target would require cooperation among federal and state authorities, power generators, distributors, investors, gas suppliers and electricity consumers.
