Lagos targets 2,000MW power boost by March 2027, woos 22 investors

The Lagos State Government has set a target of adding 2,000 megawatts (MW) to its electricity supply by March 2027 as part of efforts to tackle the state’s growing energy demand and improve power reliability.

The state government said it was pursuing regulatory reforms, private-sector investments and infrastructure development to transform the electricity market and guarantee sustainable energy access for residents and businesses.

Governor Babajide Sanwo-Olu disclosed the administration’s commitment at the Lagos Energy Summit 2026, themed “Lagos Energy Evolution: Transforming the Future.”

The governor, who was represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, described reliable electricity as a critical driver of economic growth, stressing that manufacturers, small businesses and households continued to bear the consequences of erratic power supply and rising energy costs.

He said his administration had prioritised the creation of an enabling environment for businesses through improved power infrastructure, regulatory reforms and increased private-sector participation.

“Energy remains fundamental to Lagos’ economic growth, and it is a truism that manufacturers, small businesses and households have continued to bear the burden of unreliable electricity and high energy costs.

“Our administration in the past years has been intentional in creating an enabling environment for businesses to thrive through improved power infrastructure, regulatory reforms and increased private-sector participation,” he said.

Sanwo-Olu explained that the government had introduced reforms to restructure the electricity market, strengthen regulatory institutions and create a competitive environment capable of attracting private investment.

According to him, the reforms are designed to establish clear frameworks for licensing, consumer protection and market development while ensuring that electricity providers remain accountable and responsive to consumers.

He urged stakeholders in the energy sector to translate policy commitments into practical interventions that would improve electricity supply and deliver tangible benefits to Lagos residents.

Speaking at the summit, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the state was engaging about 22 investors to advance transactions in the energy sector.

He said the engagements were part of efforts to mobilise the investments required to expand electricity generation and strengthen the state’s power infrastructure.

Ogunleye also disclosed that the government was addressing outstanding issues surrounding Power Purchase Agreements with federal authorities, expressing optimism that resolving the contractual and investment bottlenecks would improve electricity supply.

He, however, stressed that Lagos’ energy transition must go beyond increasing generation capacity to include stronger transmission and distribution networks, improved energy security and measures to eliminate energy poverty.

The commissioner also underscored the importance of diversifying the state’s energy sources through renewable options, including solar, wind and hydropower.

He encouraged households and businesses to explore alternative energy solutions while efforts continued to strengthen the national grid.

Ogunleye further disclosed that the government was pursuing the automation of energy assets to enhance monitoring, curb electricity theft and vandalism, and improve operational efficiency and service delivery.

Earlier, the Permanent Secretary, Ministry of Energy and Mineral Resources, Ibilola Kasunmu, identified inadequate electricity generation, gas supply constraints, weak transmission infrastructure and inefficient electricity collection systems as major obstacles to reliable power supply in Lagos.

She said the state’s electricity demand remained significantly higher than the volume supplied through the national grid.

According to Kasunmu, Lagos, with an estimated population of 22 million people and electricity demand of approximately 6,000MW, currently receives less than 1,000MW from the national grid.

She said the government was exploring alternative sources of electricity, including embedded generation, solar power and waste-to-energy projects, while working to improve gas availability.

Kasunmu also disclosed that a joint technical working committee had been established with the support of the Federal Government to address some of the structural challenges confronting the state’s electricity market.