Electricity consumers in Lagos may soon begin paying higher tariffs as the state government has declared that it will not operate a subsidy regime in its emerging independent electricity market.
Speaking at the maiden stakeholders’ forum organised by the Lagos State Electricity Regulatory Commission in Ikeja, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said Governor Babajide Sanwo-Olu had directed that residents must pay the actual cost of electricity.
According to Ogunleye, every participant in the electricity value chain, from power producers to distributors, must be adequately paid to ensure sustainability in the sector.
“Everybody who contributes to every kilowatt that we are receiving must get paid. Lagos is saying it repeatedly: Mr Governor’s mandate is that there is no subsidy in Lagos,” he stated.
He explained that the state is working with federal authorities to address gas pricing for power producers while also encouraging investors to take advantage of opportunities within the Lagos electricity market.
Ogunleye urged investors to focus on smaller-scale power projects ranging between 200 and 300 megawatts rather than waiting to develop massive one-gigawatt plants.
“We cannot continue doing things the same way and expect different results. We want investors to believe in the Lagos electricity market because there will be returns on investment,” he added.
The commissioner also hinted that existing electricity distribution companies may eventually hand over underserved communities to new operators in order to improve access to electricity across the state.
The Chief Executive Officer of Lagos State Electricity Regulatory Commission, Temitope George, stressed the importance of proper electricity pricing in achieving the state’s long-term energy goals.
She said Lagos is targeting a 24-hour electricity supply and full metering coverage across the state while also promoting clean energy and attracting private investment into the sector.
George disclosed that the commission is establishing zonal offices in Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe to strengthen consumer protection, improve complaint resolution, and make regulatory services more accessible to residents.
The offices are expected to begin operations in the third quarter of the year.
