More than N9 billion is being spent by shop owners to fuel 13,000 generators, in Lagos markets, with Lekki, Ikoyi and other highbrow areas of the state having the highest number of cases of energy theft and default, in the state.
The Commissioner, Lagos State Ministry of Energy and Mineral Resources, Mr. Biodun Ogunleye, disclosed this at the Power Sector Seminar, tagged: ‘Lagos State Electricity Law Roundtable,” organised by the Lagos Chamber of Commerce and Industry (LCCI), in Lagos.
The Commissioner, who was a Guest Speaker at the forum, while quoting a report conducted by the ministry, added that about 110 generating sets are being used to power activities in the commercial premises in the state, while another 4 million are also providing alternative sources of electricity for residential premises in the state.
Ogunleye disclosed that the Ministry decided to carry out the study, tagged Gen Set Studies so as to ascertain the prospects and challenges confronting the power sector in the state, as it prepares to implement the electricity bill.
The Commissioner expressed the ministry’s delight at the opportunity given the ministry, by the Chamber to present the Lagos Electricity Law to prospective investors in the state.
While assuring of the state government’s commitment to implementing the law to the letter, creating an enabling environment for the policy to work, the Commissioner however disclosed that the state would not invest any funds in the projects, besides providing strong regulatory framework for the policy to work.
“We are not interested in being part of the business. We’ve gone through that route before, and we’ve learnt our lessons. We believe businesses should be run by businessmen.
“But we will ensure stakeholders play by the rule. We’ll have penalties for operators that failed to deliver on their promises, and there will also be penalties for erring consumers,” he stated.
On the issue of subsidy for residents who may not be able to afford the tariffs when finally in place, Ogunleye stated that there was no provision for subsidy in the law, and as a result, such might not apply
He however noted that, while the implementation might throw up issues at the initial stages, the mission of the ministry was to provide 24-hour uninterrupted power supply, end the blackout culture in the state, and at affordable costs to residents.
Speaking at the forum, the President, LCCI, Mr. Gabriel Idahosa explained that the decision to organise the forum stemmed from the need to provide a platform for the Ministry and potential investors in the sector to discuss the new law.
He described Lagos as playing a crucial role in the nation’s economy, adding that the nation’s economy would get a new lease of life, once the state is able to address the issue of irregular and inadequate power supply.
READ ALSO: With technology, Nigeria’s dependence on noisy, expensive diesel generators can stop
