Lagos State has an estimated electricity demand of 12,000 megawatts, but conventional grid supply remains below 1,000MW, leaving households and businesses heavily dependent on generators.

Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, gave the figures at the opening ceremony of the 2026 Lagos Energy Summit, organised by the ministry at the Landmark Event Centre, Victoria Island, Lagos.

He said the state was pursuing regulatory reforms, private-sector investment and stronger stakeholder collaboration to bridge the electricity supply gap and establish a reliable and sustainable electricity market.

The summit, themed “Lagos Energy Evolution: Transforming the Future,” brought together government officials, legislators, energy companies, investors and industry experts to discuss strategies for improving electricity supply in the state.

Ogunleye said Lagos had made significant progress towards establishing its independent electricity market following the Electricity Act 2023 and the signing of the Lagos State Electricity Law by Governor Babajide Sanwo-Olu on December 3, 2024.

He explained that the state had moved beyond legislation to institutional and regulatory implementation, with frameworks being developed to strengthen licensing, market operations, consumer protection and investment.

The commissioner also outlined a seven-point energy agenda developed after a High-Level Strategic Partner Power Town Hall held on August 20, 2026.

The agenda covers federal-state collaboration, market sustainability, electricity wheeling and self-generation, additional generation capacity, last-mile distribution, effective regulation and modern technology.

He stressed that the success of the reforms would ultimately depend on their ability to deliver reliable, accessible and affordable electricity to residents and businesses.

Special Adviser to President Bola Tinubu on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Rilwan Babalola, called for commercially sustainable electricity reforms and stronger coordination between state and national electricity systems.

Babalola, who was represented by Usoma Achinanya said the Electricity Act 2023 had created opportunities for states to assume greater responsibility in electricity generation, distribution and market development.

He explained that the electricity market was transitioning from a single-buyer arrangement towards bilateral contracts and state-level electricity markets operating within a coordinated national framework.

He, however, cautioned that decentralisation must not lead to fragmentation, stressing the need for reforms that address both the physical delivery of electricity and the financial flow of payments to power generators and gas suppliers.

In his goodwill message, the Chairman of the Lagos State House of Assembly Committee on Energy and Mineral Resources, Sobur Oluwa, reaffirmed the Assembly’s commitment to supporting policies and legislation aimed at improving electricity supply.

Oluwa, who represents Agege Constituency II, said reliable and affordable electricity was essential to unlocking Lagos’ economic potential and strengthening its competitiveness.

He urged stakeholders to ensure that the summit produced practical decisions and measurable outcomes rather than becoming another talk shop, assuring participants of the Assembly’s readiness to consider recommendations and partnerships that would advance the state’s electricity sector.

In a goodwill message, Seplat Energy Plc Chief Executive Officer, Roger Brown, said Lagos presented significant opportunities for investment in the energy sector.

Citing a study titled Beyond Genset, he also said generators used by homes and businesses in Lagos accounted for an estimated 19 gigawatts of capacity, underscoring the scale of dependence on self-generated electricity.

He advocated a technology-neutral approach to addressing the electricity deficit, including gas-fired embedded power for industrial clusters, solar solutions for markets and businesses, and improved grid supply for residential communities.

Brown noted that Seplat Energy supplied approximately 30 per cent of the gas used by Nigerian power stations, supporting nearly 1,300MW of electricity generation.

He called for an enabling regulatory environment to attract investment and proposed collaboration among electricity distribution companies, solar developers, financial institutions and other stakeholders to develop affordable and cleaner alternatives to generators.