Lagos State operates an estimated 4.5 million fossil-fuel generators as electricity from the national grid supplies only about 20 per cent of the state’s power needs, the state Commissioner for Energy and Mineral Resources, Biodun Ogunleye, has said.
Ogunleye disclosed this while delivering a presentation at a panel discussion on Urban Renewal, Regeneration and the Transformation of Older Cities.
He said the heavy dependence on generators had increased energy expenses for households and businesses, while contributing significantly to noise and environmental pollution.
Citing a 2024 study conducted by Sustainable Energy for All in collaboration with the Lagos State Government, the commissioner said generator use in the state was responsible for an estimated 39 million tonnes of carbon dioxide equivalent emissions annually.
He described unreliable electricity supply as a major obstacle to urban productivity, noting that the widespread use of generators had created an expensive alternative energy system.
“The generator is not merely a backup device; at scale, it becomes an expensive parallel urban infrastructure system,” Ogunleye said.
He called for a transition from generator-dependent neighbourhoods to properly serviced districts supported by reliable electricity networks, shared infrastructure and effective utility planning.
The commissioner identified the Victoria Island Power project and the proposed rehabilitation of the Akute Independent Power Plant as initiatives expected to strengthen electricity supply in the state.
According to him, the Victoria Island project, which is under development, has a planned embedded generation capacity of 40 megawatts and includes a 12.6-kilometre dedicated underground feeder network to serve businesses in the commercial district.
He added that the dormant Akute Independent Power Plant, with a base contracted capacity of 26 megawatts, was scheduled for rehabilitation in 2026 under a concession arrangement to provide electricity for public services.
On urban regeneration, Ogunleye argued that improving older cities should go beyond road construction and the renovation of buildings, stressing the need for reliable electricity, water supply, sanitation and other essential services.
He identified ageing infrastructure, flooding, extreme heat, overcrowding, housing affordability and competing land-use demands as some of the challenges confronting established urban communities.
The commissioner outlined a six-part approach to urban renewal, covering physical infrastructure, essential utilities, economic development, social protection and housing, cultural heritage, and climate resilience.
He also cited ongoing road, drainage and collector reconstruction projects across parts of Lagos Island as examples of efforts to address flooding and improve transportation and commercial activities.
However, he stressed that regeneration projects must be implemented in ways that protect existing residents, traders and cultural heritage, rather than displacing communities.
On electricity market reforms, Ogunleye said the Lagos State Electricity Law, enacted in 2024, provided the foundation for the establishment of the Lagos State Electricity Regulatory Commission and the Lagos Independent System Operator in 2025 and 2026.
He said the state was continuing work on investment opportunities, licensing, contractual arrangements and consumer protection.
“An energy market is an instrument of urban policy, not an end in itself,” he stated.
Addressing the financing of urban renewal, Ogunleye advocated an integrated approach in which roads, drainage, electricity, water infrastructure and land use are planned together before construction and procurement begin.
He proposed that government funding should support shared infrastructure, while private investors and public-private partnerships could finance service delivery assets.
He further called for performance-based contracts that prioritise reliable electricity, proper maintenance and infrastructure resilience, with measures to protect affordability and local businesses.
