Power
Lagos targets 2,000MW power addition by March 2027
The Lagos State Government plans to integrate 2,000 megawatts of electricity by March 2027 to address chronic supply shortages and boost industrial productivity.
Key points
- Lagos currently demands 6,000 megawatts but receives less than 1,000 megawatts from the national grid.
- The state government is engaging around 22 investors to close key transactions in generation and distribution.
- State officials cite gas supply constraints, weak transmission lines, and collection issues as primary hurdles.
What happened
The Lagos State Government has announced a target to incorporate 2,000 megawatts of electricity into its local supply network by March 2027, according to reporting by Punch. Speaking at the Lagos Energy Summit 2026, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, stated that the state is actively pursuing investments across generation, transmission, and distribution to narrow the current energy deficit.
Representing Governor Babajide Sanwo-Olu, the Secretary to the State Government, Abimbola Salu-Hundeyin, emphasized that manufacturers, small businesses, and households continue to bear heavy financial burdens due to unreliable power and high energy costs. Officials noted that Lagos, home to an estimated 22 million residents and bearing a total demand of approximately 6,000 megawatts, currently obtains under 1,000 megawatts from the federal grid.
Current strategies and hurdles
To bridge this wide gap, the state administration is engaged with roughly 22 private investors to finalise infrastructure transactions. Discussions are also ongoing with federal authorities to resolve outstanding complications regarding Power Purchase Agreements.
Ibilola Kasunmu, the Permanent Secretary in the Ministry of Energy and Mineral Resources, pointed to persistent gas supply shortages, fragile transmission infrastructure, and inefficient collection frameworks as key impediments. In response, a joint technical working committee has been established alongside the Federal Government to tackle these structural bottlenecks through embedded power generation, solar installations, and waste-to-energy initiatives.
Why it matters
Reliable electricity access is a vital prerequisite for commercial and industrial expansion in Nigeria's commercial capital. World Bank data for 2024 records Nigeria's per capita electricity consumption at 140.6 kilowatt-hours, significantly trailing the global average of 3,708.5 kilowatt-hours, while national electricity access stands at 62.5 percent. For energy investors and policymakers, sub-national interventions like those proposed by Lagos highlight the growing decentralisation of Nigeria's power sector. Successful implementation of state-level electricity markets and private-sector partnerships could offer a viable framework to bypass national grid bottlenecks and improve industrial reliability across urban economic centres.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
