Source: Nairametrics
Lagos State has outlined an investment need between $14 billion and $33 billion to fulfill its energy generation requirements by 2030, in response to the increasing demands of its growing population and dynamic economy. This projection was shared by Mr. Kamaldeen Balogun, the General Manager of the Lagos State Electricity Board, at the 15th Ralph Alabi Memorial Lecture, which also marked the induction of new corporate members into the Nigerian Society of Engineers (NSE) Ikeja Chapter.
The lecture, themed “Opportunities in Emerging Power Sector: A Panacea for Economic Stability and Industrialisation,” highlighted the critical role of innovative power solutions in supporting economic growth and industrialization. Balogun emphasized that Lagos, as Africa’s largest metropolitan area and Nigeria’s economic hub, faces pressing energy challenges that require immediate and substantial interventions.
Balogun presented several strategic approaches aimed at bridging the energy gap and ensuring a stable, sustainable power supply for Lagos. Key initiatives include:
Grid Modernization: The state intends to upgrade its energy infrastructure by incorporating smart technologies to enhance the reliability and efficiency of the power grid. This modernization will address existing issues with electricity supply interruptions and lead to improved service delivery.
Renewable Energy Integration: Lagos plans to incorporate 1,000 MW of power from renewable sources such as solar and off-grid solutions. By diversifying its energy mix, the state aims to reduce its dependence on the national grid and promote more sustainable energy options.
Public-Private Partnerships (PPPs): Balogun highlighted the crucial role of private sector participation in financing energy projects. By fostering PPPs, Lagos seeks to expand its energy infrastructure, attract investment, and increase efficiency in the power sector.
Capacity Building: Workforce development is also a priority for the Lagos State government, with a focus on training engineers, technicians, and craftsmen within the power sector. This capacity-building initiative is essential to ensuring that the state has a skilled workforce to manage and maintain its energy systems.
Balogun stressed the importance of workforce training, saying, “The need for workforce training in the power sector cannot be overstated. Our energy future depends on a skilled and capable workforce,” underscoring the state’s commitment to developing a sustainable talent pipeline for the energy industry.
Lagos State’s energy demands are immense, with a population surpassing 20 million people. Although the state is Nigeria’s economic center, its energy supply falls well below its needs. Currently, Lagos requires over 6,000 MW of electricity, yet it receives less than 2,000 MW at peak periods from the national grid. This discrepancy has led to frequent power outages, which disrupt business operations and daily life across the state.
To tackle this shortfall, the Lagos State government is seeking private sector investment in gas-fired power plant development. Through a collaboration with the Ministry of Energy and Mineral Resources (MEMR) and the Office of Public-Private Partnerships (OPPP), Lagos aims to generate up to 500 MW of electricity across four designated hubs within the state. This investment is expected to support the state’s growing energy needs and facilitate its industrial development goals.
Lagos’ energy situation is further compounded by rapid urbanization and economic growth, which continue to drive up energy demand, outpacing the supply from the national grid. Consequently, the state is urgently pursuing alternative energy sources and solutions to meet the power demands of its businesses, industries, and residents.
The proposed investments and energy strategies form part of Lagos’ broader efforts to modernize its energy sector and lessen its reliance on the federal power supply. As part of these plans, Balogun underscored the importance of fostering a competitive energy market and incentivizing private investment in power infrastructure.
While Lagos’ energy challenges are not unique—many African cities face similar issues with power shortages and aging infrastructure—its large population and economic influence make it a potential model for other African cities seeking sustainable solutions to their energy needs.
The Lagos State government is committed to transforming the energy sector to provide stable, sustainable, and affordable power for both residents and industries. With the proposed investments and strategic initiatives, Lagos aims to significantly enhance its energy infrastructure and support the region’s long-term economic growth.
Through these efforts, Lagos aspires not only to meet its immediate energy needs but also to position itself as a leading example of how innovative solutions and private-sector collaboration can drive energy sustainability and industrial development across Africa.
