ABUJA, Nigeria (VOICE OF NAIJA)- Electricity consumers in Lagos may soon face higher tariffs as the state government has declared that there will be no subsidy on electricity in the state.
Speaking on the transition to an autonomous electricity market, 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.
Ogunleye maintained that, unless the governor reverses the policy, Lagos would not subsidise electricity.
Addressing participants at the maiden stakeholders forum organised by the Lagos State Electricity Regulatory Commission in Ikeja, he stated that every player in the electricity value chain must be paid, adding that LASERC is engaging federal authorities on gas-to-power pricing for producers in Lagos.
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“Everybody who contributes to every kilowatt that we are receiving, whether it’s renewable or whatever, must get paid. We are not carrying anything over. Lagos is saying it repeatedly: Mr Governor’s mandate is that there is no subsidy in Lagos. If he calls me tomorrow and says he wants to change his mind, I will still convey that again. But as of today, there is no subsidy in Lagos,” he said.
Ogunleye called for new strategies to tackle Nigeria’s power challenges and urged investors to have confidence in the Lagos electricity market, assuring them of returns on investment.
“There’s no need for you to build a one-gigawatt plant; do 200 to 300 (megawatts). Let’s walk on this road together, and lines will fall in pleasant places. Everything will come together. There are things we need to do differently.
“We cannot do things the same way. And I’m appealing to everyone; we may not be sounding like you want us to sound. We may not be the people you think we are supposed to be. But please, let’s make these changes, this improvement. Let’s walk on it for four or five years and let’s see if God will crown it all,” Ogunleye stated.
The commissioner also noted that existing electricity distribution companies in Lagos might be required to relinquish underserved and unserved areas to new operators to ensure wider electricity access across the state.
The Chief Executive Officer of LASERC, Mrs Temitope George, also stressed the importance of cost-reflective pricing.
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She disclosed that Lagos aims to achieve a 24-hour power supply and 100 per cent metering across the state, while reaffirming LASERC’s goal of becoming a leading electricity regulator through sustainable power development and improved living standards for residents.
George added that the commission would continue to enforce standards, protect consumers, attract investments, encourage innovation, and promote clean energy initiatives in Lagos.
To strengthen consumer protection, she revealed that LASERC was establishing zonal offices in Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe to improve complaint resolution and increase access to regulatory services.
“The offices are expected to become operational in the third quarter of the year,” she said.