Olawale Oluwo, Lagos State Commissioner for Energy and Mineral Resources
Lagos, Nigeria’s commercial capital to embark on Liquefied Natural Gas (LNG) for private power plants. This is to woo investors and improve gas feedstock supply in the state. Lagos state is believed to accommodate almost 9 million people with various investments opportunities in the state. But, dwindling power sector is affecting ease of doing business in the cosmopolitan state.
Lagos State is attempting to rewrite the rules of Nigeria’s power sector by developing an Independent Power Project (IPP) programme, based on pipeline gas and LNG that would also lead to the creation of its own mini grid within the national grid structure.
Lagos envisages 3 gigawatts (GW) of new gas-fired power capacity being deployed in the next three-to-five years, building on the 900 megawatts it already takes from the national grid. To achieve this, it wants to sanction the construction of 10 IPPs at strategic locations around the state.
According to Lagos State Commissioner for Energy and Mineral Resources, Wale Oluwo, power will be at cost-reflective tariffs.
The Commissioner is confident that Lagos can make private power investments work, despite the failure of a nationwide electricity sector privatization which saw the unbundling of power generation, transmission and distribution in the country.
Many stakeholders are of the view that the process did not mean well for the country as power has not improved to reasonable expectations though with slight development as the present administration claimed.
Oluwo said thus, “We want to get the effects of cross-subsidy, so those that are poor pay a reasonable price, while richer customers pay much more.”