Lagos State residents are collectively spending over N13 trillion each month on electricity consumption, a figure that underscores the pressing need for sustainable energy solutions in the face of unreliable power supply.
This revelation was made by the Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, during a press briefing held at the Bagauda Kaltho Press Centre, Alausa, Ikeja, on Thursday, April 3, 2025.
The briefing was convened ahead of the inaugural Lagos Energy Summit, themed “Journey to Energy for All,” scheduled to take place from April 15 to 18, 2025, at the Grand Ballroom, Oriental Hotel, Victoria Island, Lagos. The summit aims to bring together industry leaders, policymakers, and innovators to discuss and develop strategies for a sustainable energy future in Sub-Saharan Africa.
Commissioner Ogunleye highlighted the unsustainable nature of the current electricity expenditure, especially given the persistent challenges of unreliable power supply. He emphasized the urgent need for alternative and more reliable energy solutions to alleviate the financial burden on both residents and the government.
In response to these challenges, the Lagos State Government has announced plans to install 22,000 solar-powered streetlights across highways in the metropolis. This initiative is part of the state’s commitment to adopting sustainable energy solutions and reducing dependence on the national grid.
The state’s electricity deficit has been a longstanding issue, with Lagos requiring approximately 9,000 megawatts (MW) of electricity but receiving only about 1,000 MW from the national grid just 11% of its demand. This shortfall has led over 80% of the population and businesses to rely on off grid power solutions, predominantly petrol, diesel, or fuel oil generators.
The Lagos Economic Development Update (LEDU) 2025 report estimates that this energy shortfall adds an extra N5.3 trillion annually to operating costs, reducing disposable incomes, limiting investments, and weakening economic productivity.
Furthermore, the heavy reliance on fuel powered generators has significant environmental and health implications, contributing to air pollution and associated health risks. The Lagos State Government’s initiatives, including the forthcoming Energy Summit and the solar streetlight project, aim to address these challenges by promoting the adoption of innovative and sustainable energy solutions.
The inaugural Lagos Energy Summit is expected to attract over 500 participants, fostering collaboration among stakeholders to drive the state’s socio-economic growth through sustainable energy strategies. The summit will serve as a platform to discuss the state’s ambitious targets, including plans to ramp up power generation to 6 gigawatts within three years under the new state electricity law.
Commissioner Ogunleye expressed optimism that these initiatives would pave the way for a more sustainable and reliable energy future for Lagos State, ultimately reducing the financial burden on residents and fostering economic development.
