Lagos needs 12,000MW of power but gets under 1,000MW from the grid

Lagos State needs about 12,000 megawatts of electricity but receives under 1,000MW from the national grid, leaving households and businesses heavily dependent on generators, the state's Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said on Tuesday (November 10) at the opening of the second Lagos Energy Summit, where he set out a seven-point energy agenda to close the gap through regulatory reform, private investment and stronger stakeholder collaboration.

Generators total about 19,000MW, the de facto power supply

Citing a study titled Beyond Gensets, Ogunleye said generators used by homes and businesses in Lagos account for an estimated 19 gigawatts of capacity, far exceeding grid supply and making generators the de facto power supply. The summit, themed "Lagos Energy Evolution: Transforming the Future", runs November 10 to 12 at the Landmark Event Centre on Victoria Island, with 1,500 to 2,000 stakeholders expected.

Seven-point agenda: federal-state cooperation, new generation, last-mile distribution

The seven-point agenda, developed after a High-Level Strategic Partner Power Town Hall on August 20, covers federal-state collaboration, market sustainability, electricity wheeling and self-generation, additional generation capacity, last-mile distribution, effective regulation and modern technology. Ogunleye said Lagos has moved beyond legislation to institutional and regulatory implementation since the federal Electricity Act 2023 decentralised the market: the Lagos State Electricity Law, signed by Governor Babajide Sanwo-Olu on December 3, 2024, created the Lagos State Electricity Regulatory Commission (LASERC), which has taken over most regulatory authority from the federal regulator.

400MW of power purchase deals signed this year; target above 3,000MW by March 2027

According to Energy News Network, Lagos has signed power purchase agreements for up to 400MW of new generation this year, and the regulator granted 14 new licences in May; during 2026 it also identified 38 companies operating more than 600MW of generation capacity without the authorisation the state law requires. Governor Sanwo-Olu said on October 11 that the aim is to raise supply from below 1,000MW to well above 3,000MW by March 2027, through national grid resources, Lagos independent power projects, energy hubs, power barges, energy traders and embedded generation. The summit also clarified that Lagos is not disconnecting from the national grid but is strengthening local networks and exploring diversified supply arrangements to improve energy security. Sources: Blacktalker; Business Insight; Champion News; Energy News Network.