Lagos State Governor, Mr. Babajide Sanwo-Olu, on Friday reaffirmed his administration’s commitment to making Lagos a model for electricity market transformation in Africa.
Governor Sanwo-Olu expressed this commitment at the Lagos Commodities and Futures Exchange Breakfast Meeting on the Importance of the Energy Bill to the Capital Market, themed “Building a Competitive Electricity Marketplace: Strategies to Attract Investments and Boost Confidence in the Lagos Electricity Market Using the Capital Market,” held at the Muson Centre, Onikan, Lagos.
Sanwo-Olu, represented by the Deputy Governor, Dr. Kadri Obafemi Hamzat, stated that the government was deliberately implementing policies to encourage private sector participation, enhance regulatory oversight, and build investor confidence in the Lagos electricity market. He emphasized that Lagos, as the economic nerve center of the country, understands the critical importance of a reliable, competitive, and investor-friendly electricity market.
“As Nigeria’s economic nerve center, Lagos understands the critical importance of a reliable, competitive, and investor-friendly electricity market. Therefore, the state government remains committed to creating an enabling environment that encourages investments in power infrastructure and renewable energy solutions,” he said.
Speaking further, Sanwo-Olu underscored the vital role of the capital market in unlocking new investment channels for the electricity sector. He highlighted the need for a structured platform that enables both local and international investors to finance large-scale energy projects through instruments such as energy bonds, power purchase agreements, and electricity derivatives.
He called for collaboration among stakeholders, urging financial institutions, investors, and policymakers to work together in leveraging the capital market for energy sector growth. Additionally, the governor assured that with the Lagos State Electricity Law in place, decisive steps were being taken to decentralize power generation, encourage private sector participation, and foster a more dynamic and efficient energy marketplace. He also emphasized the need to introduce new meters to eliminate estimated billing in the state.
“Together, we can build a competitive, reliable, and sustainable electricity marketplace that serves the needs of our people and businesses,” he added.
Governor Sanwo-Olu described the theme of the event as timely and essential, considering the state government’s collective journey toward a more sustainable and resilient energy sector.
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“The goal is to ensure that everyone has access to electricity, reducing the excessive reliance on generators. This, in turn, leads to a cleaner environment, making it a win-win situation,” he noted.
Earlier, the State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, disclosed that the Clean Lagos Electricity Market (CLEM) aims to eliminate blackouts across the state by systematically executing the State Electricity Bill. He explained that this would involve strengthening market institutions, deploying appropriate tools, enhancing value chain delivery capacity, and attracting new investments for a sustainable turnaround of the power situation with partners across the energy value chain.
Ogunleye further assured that the state government was committed to drastically increasing power capacity in Lagos, revealing that the government was constructing a total of five energy hubs in the state. He called on the private sector, individuals, and stakeholders to support the government’s efforts in ensuring equitable power distribution across geographical areas, irrespective of tribe or location, to promote national development.
In his goodwill message, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, represented by Executive Commissioner of Operations, Mr. Bola Ajomale, emphasized the importance of collaboration between capital market operators, government agencies, and development finance institutions in unlocking the full potential of market-based financing for the power sector.
Agama urged stakeholders, regulators, policymakers, investors, and market operators to deepen their collaboration and leverage the capital market as a catalyst for transforming Nigeria’s electricity sector, fostering a more competitive, transparent, and investor-friendly marketplace.
“I encourage all stakeholders, regulators, policymakers, investors, and market operators to deepen their collaboration and leverage the capital market as a catalyst for transforming Nigeria’s electricity sector. By working together, we can build a more competitive, transparent, and investor-friendly electricity marketplace,” he said.
He also assured that SEC remains committed to facilitating the listing of energy companies on the Nigerian Exchange to deepen liquidity, enhance corporate governance, and broaden investment opportunities in the power sector. Furthermore, he reaffirmed that the Commission would continue to implement policies that promote a stable and efficient market, ensuring that both investors and issuers operate in a well-regulated and secure environment.
