Electricity consumers across Lagos State may soon experience an increase in electricity tariffs as the Lagos State Government has declared that there will be no subsidy regime in the state’s evolving power sector.
Newsonspot reports that the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, disclosed this during the maiden stakeholders’ forum organised by the Lagos State Electricity Regulatory Commission in Ikeja.
According to Ogunleye, the administration of Governor Babajide Sanwo-Olu has maintained a firm position that electricity consumers in Lagos must pay the actual cost of power supply as the state gradually transitions into an autonomous electricity market.
He stressed that every participant in the electricity value chain, including power producers and suppliers, must receive fair payment for their services, noting that the state government would not sustain subsidy payments in the sector.
Ogunleye further revealed that LASERC is already engaging with federal authorities to address gas-to-power pricing for electricity producers operating within Lagos State.
While addressing stakeholders and investors, the commissioner encouraged private sector participation in the Lagos electricity market, assuring investors of profitable returns. He advised potential investors to consider developing smaller-scale power plants between 200 and 300 megawatts instead of embarking on massive one-gigawatt projects.
He also called for a new approach to solving Nigeria’s electricity challenges, insisting that sustainable reforms and strategic investments are necessary to improve power supply across the state.
The commissioner added that existing electricity distribution companies operating in Lagos may eventually relinquish underserved and unserved communities to new operators capable of delivering stable electricity to residents.
Speaking at the event, the Chief Executive Officer of LASERC, Temitope George, emphasised the importance of cost-reflective electricity pricing in achieving reliable power delivery.
George disclosed that Lagos State is targeting a 24-hour electricity supply and 100 per cent metering coverage for residents. She reaffirmed the commission’s commitment to protecting consumers, encouraging investment, supporting innovation, and promoting clean energy solutions throughout the state.
As part of measures to strengthen consumer protection and improve service delivery, she announced plans to establish LASERC zonal offices in Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe areas. According to her, the offices are expected to become operational in the third quarter of the year.
