Lagos to end estimated electricity billing with new meters

Babajide Sanwo-Olu, governor of Lagos, has announced plans to introduce new meters to eliminate estimated billing and ensure residents receive accurate electricity charges.

Sanwo-Olu, represented by Obafemi Hamzat, deputy governor of Lagos, spoke at the Lagos Commodities and Futures Exchange Meeting held at the Muson Centre, Onikan, Lagos, on Friday.

The meeting, themed ‘Building a Competitive Electricity Marketplace: Strategies to Attract Investments and Boost Confidence in the Lagos Electricity Market Using the Capital Market,’ focused on strategies to enhance the state’s electricity sector.

“We will introduce new meters to eliminate estimated billing and provide accurate electricity charges,” Sanwo-Olu said.

The governor also reaffirmed his administration’s commitment to transforming Lagos into a model for electricity market reforms across Africa by implementing innovative policies.

He emphasised that creating a competitive and reliable electricity market will guarantee a steady power supply, reduce dependence on generators, and significantly lower costs for businesses and households.

“By so doing, the environment is clean. It is a win-win situation for all,” he said.

‘LAGOS ENCOURAGES PRIVATE SECTOR PARTICIPATION’

Sanwo-Olu said the state government is implementing policies to encourage private sector participation, improve regulatory oversight, build investor confidence, and create an enabling environment for investments in power infrastructure and renewable energy.

According to him, the Lagos State Electricity Law has paved the way for the government to decentralise power generation, transforming the sector.

The governor said the law will boost private sector participation, leading to a more dynamic and efficient energy marketplace.

“We will leverage the capital market to finance large-scale energy projects through instruments such as energy bonds, power purchase agreements, and electricity derivatives,” he said.

“By implementing these strategies, our aim is to build a competitive, reliable and sustainable electricity marketplace that serves the needs of the people and businesses.”

Biodun Ogunleye, commissioner for energy and mineral resources, noted plans to revolutionise the state’s energy sector by implementing innovative strategies.

Ogunleye said the Clean Lagos Electricity Market initiative aims to eradicate blackouts across the state through a multi-step approach, including establishing robust market institutions.

The commissioner emphasised the need to deploy cutting-edge tools, enhance delivery capacity, and attract new investments, with a key strategy being the construction of five energy hubs to significantly boost power capacity.

“The state government is committed to ensuring that power capacity goes up drastically in the state as the government is building a total of five energy hubs,” Ogunleye said.

“We, therefore, call on the private sector, individuals and other stakeholders to support the government in its bid to create and ensure that power supply is well-distributed irrespective of geographical areas.”

‘CAPITAL MARKET OPERATORS, GOVERNMENT AGENCIES COLLABORATION IS CRUCIAL’

On his part, Emomotimi Agama, director-general (DG) of the Securities and Exchange Commission (SEC), said the collaboration among capital market operators, government agencies, and development finance institutions is crucial for unlocking the full potential of market-based financing for the power sector.

Agama, represented by Bola Ajomale, SEC’s executive commissioner of operations, urged regulators, policymakers, investors, market operators, and other stakeholders to deepen collaboration and leverage the capital market to transform Nigeria’s electricity sector.

The DG assured that the SEC will continue to implement policies that promote a stable and efficient market, providing a secure environment for investors and issuers.