The Lagos State Government and the Lagos Chamber of Commerce and Industry (LCCI) have called for significant new investments in Nigeria’s power sector to support decentralisation, enhance competition, and improve energy security for households and businesses.
The call came during the LCCI Power Sector Conference held on Wednesday in Lagos, where stakeholders warned that decentralisation under the Electricity Act would not succeed without fresh capital to upgrade ageing infrastructure, expand generation capacity, and modernise distribution networks.
Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, represented by Chief Technical Officer Ogunade Hamed, described Nigeria’s energy sector as entering “a defining moment” in its transition. He stressed that while Lagos had taken early steps to establish a decentralised electricity market, significant investment remained necessary.
“Our distribution and transmission networks require significant investment, refurbishment, and smarter management. We cannot deliver reliability on infrastructure designed for a smaller population and a different economy,” Ogunleye said. He highlighted ongoing initiatives, including expanded embedded generation for industrial clusters, solar retrofits for 42,000 streetlights, and regulations supporting mini-grids and hybrid systems.
Ogunleye urged both public and private actors to “invest, collaborate and demonstrate the courage to innovate,” noting that no single state could build a thriving electricity market alone.
Olufemi Bakare, Chairman of the LCCI Power Sector Group, said Nigeria was at “a critical juncture” and warned that decentralisation efforts would falter without addressing infrastructure deficits. He noted that while generation capacity had improved, transmission and distribution bottlenecks persisted, hindering the development of competitive electricity markets.
LCCI President Gabriel Idahosa also highlighted the need for harmonised regulatory standards and enabling policies to attract private sector participation. “Nigeria cannot industrialise without reliable electricity; our businesses cannot scale without energy stability; our digital ambitions cannot thrive without dependable power,” he said. Idahosa added that regulatory inconsistencies, poor data management, and insufficient off-grid investment continued to undermine investor confidence.
The conference, themed Infrastructure Optimisation and Challenges in the Power Sector Amidst Current Decentralisation Efforts, brought together industry leaders, policymakers, and investors to explore actionable solutions to expand renewable energy, improve grid resilience, and unlock financing for state-level electricity markets.
