Lagos State Governor Babajide Sanwo-Olu has officially signed the Lagos Electricity Bill 2024 into law. This major legislative move aims to address longstanding challenges in the energy sector and is expected to lay the foundation for economic and industrial growth in Lagos.
The signing ceremony took place at the Lagos House in Ikeja, attended by key figures such as Deputy Governor Dr. Femi Hamzat, Chairman of the Lagos State House Committee on Energy and Mineral Resources Sabur Oluwa, and other notable officials.
Governor Sanwo-Olu described the legislation as a "watershed in the production and distribution of electricity" in Lagos State. The law seeks to ensure a 24-hour electricity supply across the state, following the Federal Government's 2023 approval for states to generate and distribute energy independently. This initiative is anticipated to reduce Lagos's dependency on the national grid, which has been plagued by inefficiencies and power outages.
The Lagos Electricity Law 2024 outlines comprehensive measures to enhance power generation, distribution, and regulation within the state. It establishes a framework for creating and administering the Lagos Electricity Market, ensuring its efficient and financially viable operation.
The law also promotes diverse energy sources, including renewable energy, and encourages energy efficiency, investment, competition, and innovation in the electricity sector.
Special provisions within the law include the establishment of electrification funds to finance projects in underserved areas and a Community Trust Fund requiring licensed power-generating companies to allocate a portion of their operating expenditure towards host community development.
Additionally, the law creates several regulatory institutions, such as the Lagos State Electricity Regulatory Commission and the Lagos Independent System Operator, to oversee compliance, licensing, and system reliability.
Commissioner Biodun Ogunleye noted that the implementation of the law is expected to begin within six months, pending final approval from the Federal Government. This forward-thinking approach aims to transform Lagos into a global city with a reliable and uninterrupted power supply, ultimately enhancing the socio-economic value of its citizens.
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