Lagos plans a electricity tariff hike as the state government insists there will be no subsidy in the evolving power market

Electricity consumers in Lagos may soon face higher power costs as the state government has declared that there will be no subsidy regime in its emerging autonomous electricity market.

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The Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said residents would pay the actual cost of electricity in line with the directive of Governor Babajide Sanwo-Olu.

Speaking during the maiden stakeholders’ forum organised by the Lagos State Electricity Regulatory Commission in Ikeja, Ogunleye insisted that every participant in the electricity value chain must receive full payment for services rendered.

“Everybody who contributes to every kilowatt that we are receiving, whether it’s renewable or whatever, must get paid,” Ogunleye said.

“Lagos is saying it repeatedly: Mr Governor’s mandate is that there is no subsidy in Lagos.”

The commissioner added that the state government was working with federal authorities to address gas-to-power pricing for electricity producers operating in Lagos.

The planned Lagos electricity tariff hike comes as the state pushes ahead with reforms aimed at attracting private investment into power generation and distribution.

Ogunleye urged investors to take advantage of opportunities in the evolving electricity market, assuring them of returns on investment.

“No need for you to build a one-gigawatt plant; do 200 to 300 megawatts. Let’s walk on this road together,” he said.

He also stressed that existing electricity distribution companies operating in Lagos might be required to surrender underserved and unserved areas to new operators to improve access to electricity across the state.

The Chief Executive Officer of LASERC, Temitope George, said appropriate pricing would be critical to achieving the state’s ambitious power goals.

George disclosed that Lagos was targeting a 24-hour electricity supply and 100 per cent metering coverage as part of its long-term energy development strategy.

She said the commission remained committed to enforcing standards, protecting consumers, supporting innovation and promoting clean energy solutions.

As part of efforts to improve consumer protection, George announced that LASERC would establish zonal offices in Ikorodu, Amuwo Odofin/Badagry and Sangotedo/Epe to speed up complaint resolution and improve access to regulatory services.

According to her, the offices are expected to become operational in the third quarter of the year.

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The latest development signals a major shift in the Lagos electricity market and could reshape how residents and businesses pay for power in Nigeria’s commercial capital.