Governor Babajide Sanwo-Olu of Lagos State has enacted the Lagos Electricity Bill 2024, marking a transformative step in the state’s energy sector. The legislation, signed on December 3, 2024, empowers Lagos to generate, distribute, and regulate its electricity independently, following federal approval for state-managed power systems. The reform seeks to reduce reliance on the inefficient national grid while addressing persistent power shortages that have hindered economic growth and daily life.
The law introduces comprehensive measures to modernize the energy landscape, including the establishment of the Lagos Electricity Market and new regulatory bodies like the Lagos State Electricity Regulatory Commission (LASERC) and Lagos Independent System Operator. These entities will oversee licensing, compliance, and the integration of renewable energy. The initiative also aims to expand electricity access to underserved areas through dedicated funds for electrification projects .
Governor Sanwo-Olu highlighted the economic benefits of the law, emphasizing its potential to transform Lagos into a 24-hour economy. Small and medium enterprises (SMEs), often burdened by high electricity costs and dependence on generators, are expected to thrive under a more stable power supply. Additionally, the law encourages private sector participation, fostering innovation and investment in the state’s energy infrastructure .
The bill also prioritizes sustainability by promoting the adoption of renewable energy sources such as solar and wind. This aligns with the state’s goal of achieving energy equity and environmental responsibility. The new framework will provide a regulatory sandbox for testing emerging technologies, ensuring Lagos stays at the forefront of energy innovation .
Implementation of the law is expected to commence within six months, as Lagos aims to set a national example of energy reform. Governor Sanwo-Olu expressed optimism about the law’s potential to illuminate the entire state and enhance public safety, security, and quality of life. He called on stakeholders to collaborate effectively to ensure its success .
