The Lagos State Government has announced plans to phase out the electricity band classification system introduced by the Nigerian Electricity Regulatory Commission (NERC) in 2024, as it pushes towards achieving stable power supply across the state.
Under the NERC arrangement introduced in April 2024, electricity consumers were grouped into Bands A to E based on the number of daily electricity supply hours. Band A customers, regarded as premium users, pay the full cost of electricity in exchange for a minimum of 20 hours of power daily, while customers in lower bands continue to enjoy government subsidies with fewer supply hours.
Speaking during a ministerial press briefing held in Alausa, Ikeja, on Monday, the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the state government is focused on creating an electricity system that delivers uninterrupted power supply without relying on band classifications.
According to him, the Lagos State Electricity Regulatory Commission now oversees the electricity market within the state and is working towards Governor Babajide Sanwo-Olu’s vision of stable electricity in every home.
Ogunleye said the government does not want to focus on electricity banding but rather on ensuring reliable power for all residents.
He said, “Part of what we are trying to enable is an environment that eliminates banding. Banding says that you have 3, 8, 12, or 21 hours of electricity.
“What we are saying is, is it impossible to have a continuous power supply? The governor has thrown the challenge and even repeated it again this morning. Is it impossible to have a 24-hour power supply?
“I strongly believe that we can do it. We have seen it before in this city. Banding is not what we want to focus our attention on.”
The commissioner also reiterated that the Lagos State Government would not support electricity subsidies, insisting that consumers would pay the actual cost of electricity as directed by the governor.
He explained that the state had intensified efforts to improve electricity infrastructure, expand renewable energy deployment, and strengthen clean energy initiatives to support Lagos’ ambition of becoming a reliable 24-hour economy.
Ogunleye disclosed that the implementation of the Lagos State Electricity Law 2024 had been accelerated to create a competitive electricity market driven by private sector participation.
He added that the state had updated its Integrated Resource Plan and completed a Strategic Implementation Plan aimed at ending the single-buyer electricity model while promoting bilateral energy trading.
According to him, the Lagos State Electricity Regulatory Commission has also strengthened licensing and enforcement activities, while the Lagos Independent System Operator is being positioned to improve grid stability and market performance.
On renewable energy projects, Ogunleye said the government had replaced 22,000 conventional streetlights with smart solar-powered systems installed across major roads and highways, including the Gbagada-Oshodi Expressway, Lekki-Epe Expressway, Ikorodu Road, and Funsho Williams Avenue.
He further revealed that another 20,000 solar streetlights had been installed across the state, bringing the total number of smart solar-powered streetlights in Lagos to about 42,000.
The commissioner noted that critical public facilities were already benefiting from improved electricity interventions. He said Gbagada General Hospital now enjoys between 21 and 22 hours of electricity daily following the installation of 2MVA and 1MVA transformers.
He also stated that lithium-ion battery storage systems had been deployed in 11 primary healthcare centres and 52 secondary schools, while Lagos State Television had been equipped with a 200KVA solar-powered energy system.
