By Ugo Amadi
The continuous hum of diesel generators has long been the background noise of daily life in Lagos, Nigeria. However, the Lagos State Government has launched a decisive initiative to permanently disrupt this status quo.
Leveraging the legal freedoms granted by the Lagos State Electricity Law 2024, the state is shifting its role from a direct power provider to an aggressive market enabler. The primary objective is to attract private equity to replace erratic, rationed power with a competitive, 24-hour subnational market.
For years, Lagosians have lived under a restrictive system that classifies neighbourhoods into “Bands” based on the hours of daily electricity they receive. For residents in areas like Aboru—stuck on Band D with fewer than three hours of power a day—the system has institutionalised inequality.
Interestingly, Lagos State has laid out its most aggressive push yet to end “the culture of blackouts,” unveiling a roadmap that leans on private sector investment, independent power generation, and digital monitoring to build a 24-hour electricity market.
The plan was presented by the Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, at the 2026 Ministerial Press Briefing in Alausa.
The goal, according to him, is 95–100% grid availability, full metering penetration, and single-digit energy losses by 2030. If executed, it would make Lagos the leading subnational electricity market in Africa. Ogunleye said the state will launch a 100% metering initiative from July 2026 to close the billing gap and cut losses.
He made the administration’s position clear regarding the current restrictive power structures:
“Banding says that you have 3, 8, 12, or 21 hours of light. We are saying—is it impossible to have continuous power supply? Mr. Governor has thrown the challenge. I strongly believe that we can do it. Banding is not what we want to focus our attention on.”
Instead of managing scarcity, the state is aiming for 95 to 100 per cent grid availability. To achieve this ambitious goal, Lagos is bypassing total reliance on the federal grid. The state is targeting an additional 2,000 megawatts (MW) of embedded power generation within its borders through partnerships with private investors, with tangible results expected within the next six to 12 months.
The Lagos State Electricity Regulatory Commission (LASERC) has already begun enforcing new rules, issuing 14 operational licences and permits to private investors. Out of 12 regulated Independent Power Producers (IPPs) in the state, seven are already fully operational commercially. The state is positioning itself firmly as an enabler, not an operator.
According to him, two flagship corridors are central to the plan:Badagry Corridor: 37.7 km of high-voltage infrastructure, including three towers crossing Gbaji Lagoon and the rehabilitation of 33kV lines linking Gbaji, Seme, Owode, and Apa to improve network reliability.
Lekki-Epe Integrated Energy Corridor: A 132kV bulk transmission line from Ajah to Alaro City, running alongside a parallel gas pipeline network.
As tech and metering get a major upgrade, he said Lagos is developing the “Electric Eye of Lagos,” an AI-powered monitoring system for real-time visibility across electricity trading and power delivery. The state is finalising market rules, grid interface guidelines, and consumer supply codes to support this competitive market.
Public lighting is also being overhauled. Lagos has deployed 42,000 smart solar streetlights, replacing 22,000 conventional units on major routes including the Gbagada-Oshodi Expressway, Lekki-Epe Expressway, Lagos Island Expressway, and Ikorodu Road. Nearly 40,000 solar-powered streetlights are now operational.
He explained that public institutions and clean transport are also in scope. Gbagada General Hospital now gets 21–22 hours of power daily after 2MVA and 1MVA transformers were installed. Renewable upgrades have been completed in 52 secondary schools and 11 primary healthcare centres through lithium-ion battery projects.
In transport, Lagos is pushing CNG and EV infrastructure. Exactly 244 vehicles have been converted to CNG, with 17 CNG stations expected online before the end of 2026. Over 80,000 households now use cleaner cooking energy via the state’s LPG expansion program. According to him, the Oshodi Energy Hub is also being developed as a multi-purpose facility for LPG, PMS, AGO, CNG, EV charging, and vehicle conversion services.
As a matter of fact, Lagos is successfully creating a ring-fenced market with its own regulator, licensing regime, and infrastructure plan to completely eliminate the band classification system. The playbook is clear: open the market, enforce standards, bring in IPPs, and use tech to monitor and bill accurately.
While execution risks remain in grid interface, gas supply, and long-term financing, Lagos is moving faster than most states to control its power future. By establishing this robust regulatory framework, Lagos is positioning itself as Africa’s premier subnational energy market. For the millions of businesses and residents in the city, the ultimate goal remains clear: turning the lights on permanently.
