Electricity consumers in Lagos State may soon face higher tariffs as the government has announced that there will be no subsidy under its emerging autonomous electricity market structure.
The Commissioner for Energy and Mineral Resources, Biodun Ogunleye, stated that residents will now pay the full cost of electricity as the state advances its independent power regulatory framework under Governor Babajide Sanwo Olu.
According to Ogunleye, the policy direction is clear that every component of electricity generation, transmission, and distribution in Lagos must be paid for without government subsidy support.
He explained that the Lagos State government is working with federal authorities and key stakeholders in the energy sector to ensure fair pricing, particularly around gas to power supply costs that affect electricity generation.
Ogunleye emphasized that investors are encouraged to participate in the Lagos electricity market, noting that the state is positioning itself as a viable environment for energy investment with expected returns for operators.
He also suggested a decentralized approach to power generation, encouraging smaller scale investments rather than large centralized projects in order to improve efficiency and distribution across the state.
The commissioner further noted that ongoing reforms may require electricity distribution companies operating in Lagos to hand over underserved areas to new operators to improve access and reliability of supply.
The Chief Executive Officer of the Lagos State Electricity Regulatory Commission, Lagos State Electricity Regulatory Commission, Mrs Temitope George, also reiterated the state’s commitment to achieving a more efficient and transparent electricity market.
She stated that Lagos is targeting 24 hour electricity supply alongside full metering coverage for consumers as part of broader sector reforms aimed at improving service delivery and accountability.
George added that the commission is focused on ensuring fair pricing, protecting consumers, encouraging investment, and promoting cleaner energy solutions across the state.
As part of regulatory expansion, LASERC announced plans to elish zonal offices in Ikorodu, Amuwo Odofin Badagry, and Sangotedo Epe to improve customer complaint resolution and enhance access to regulatory services.
The offices are expected to become operational in the third quarter of the year, marking another step in Lagos State’s ongoing electricity sector reform.
The policy shift signals a significant ce for electricity users in Lagos as the state moves toward a fully cost reflective tariff system designed to attract investment and improve supply reliability.
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