Lagos State Seeks $14bn to $33bn Investment to Meet Energy Needs by 2030

By Aminu Adamu

The Lagos State Government has outlined a significant investment requirement of between $14 billion and $33 billion to bridge its energy generation gap by 2030. This projection was revealed by Mr. Kamaldeen Balogun, General Manager of the Lagos State Electricity Board, during the 15th Ralph Alabi Memorial Lecture and induction ceremony for new corporate members of the Nigerian Society of Engineers (NSE) Ikeja Chapter.

Addressing the audience at the event themed “Opportunities in Emerging Power Sector: A Panacea for Economic Stability and Industrialisation,” Balogun emphasized the urgent need for innovative approaches in power generation to drive economic growth and industrialization. "Energy supply remains Lagos State’s most significant infrastructure and developmental challenge," he noted, citing data from the Lagos Bureau of Statistics to underscore the substantial funding needed to meet the state’s power demands.

Despite being Nigeria’s economic powerhouse and Africa’s largest metropolitan area with over 20 million residents, Lagos State faces a significant energy shortfall. Current data reveals that the state receives only 1,000 megawatts (MW) of power daily, available for an average of 12 hours, compared to the required 9,000 MW. This deficit poses considerable challenges but also presents vast opportunities for investment in various segments of the power value chain.

Balogun highlighted, “The Lagos power sector offers investment opportunities in Independent Power Plants (IPPs), renewable energy—particularly solar, off-grid, and mini-grid solutions for underserved areas—and energy storage systems to improve reliability.”

A notable aspect of Lagos State’s energy strategy is its utilization of the 2023 Electricity Act. This legislation empowers states to generate, transmit, and distribute power independently within their jurisdictions, opening doors for new and expanded initiatives.

According to Balogun, “This legal framework positions Lagos to take bold steps toward improving power supply through the Lagos Electricity Market.”

The Lagos Electricity Market Implementation Plan is a cornerstone of the state’s approach, aiming to generate 3,000 MW of electricity within the next 30 months. The plan prioritizes:

1. Grid Modernisation: Upgrading existing infrastructure with smart technologies to enhance reliability and operational efficiency.
2. Renewable Energy Integration: A target of 1,000 MW from solar and off-grid solutions to diversify the state’s energy mix.
3. Public-Private Partnerships (PPPs): Encouraging private sector involvement to fund energy projects and scale up infrastructure. Balogun noted, “The plan includes a strong focus on capacity building, ensuring workforce training for engineers, technicians, and craftsmen in the power sector.”

The Lagos State government has already begun seeking private partnerships to realize its ambitious energy goals. Recently, the Ministry of Energy and Mineral Resources (MEMR), in collaboration with the Office of Public-Private Partnerships (OPPP), announced an initiative aimed at generating up to 500 MW of electricity across four hubs within the state. This move is part of the broader strategy to reduce reliance on the national grid, which currently supplies less than 2,000 MW at peak periods to Lagos—far below the 6,000 MW needed to meet basic demand.

“Emerging sectors like electric vehicle infrastructure and waste-to-energy projects offer long-term potential,” Balogun added, emphasizing that the ongoing push for sustainable power solutions aligns with global energy trends and could significantly enhance the state’s economic stability.

Lagos State’s drive to secure investments ranging from $14 billion to $33 billion by 2030 highlights the urgent need for innovative and sustainable solutions in the power sector. With strategic plans like the Lagos Electricity Market and a keen focus on public-private partnerships, the state aims to pave the way for a more reliable and diversified energy supply. “Lagos is poised to ensure adequate and reliable power supply to its citizens,” Balogun concluded, positioning the state as a leader in modern energy solutions in Nigeria.