By Faridat Salifu
The Lagos State Government has
moved to generate an additional 500 megawatts (MW) of electricity across four strategic hubs to address the energy deficit in the state.
Consequently, the government has called for bids from power generating firms to build gas-fired power plants for that purpose.
The project, according to a statement by the State’s Ministry of Energy and Mineral Resources (MEMR), is to be executed under the Clean Lagos Electricity Market (CLEM) initiative, which is designed to address the disparity between demand and supply.
The initiative is championed by the Ministry of Energy and Mineral Resources (MEMR), in conjunction with the Office of Public-Private Partnerships (OPPP).
The government reasons that with a population surpassing 20 million and an economy that underpins Nigeria’s commercial landscape, Lagos requires more than 6,000 MW to meet its electricity demands.
Currently, the national grid provides less than 2,000 MW at peak periods, leaving businesses and residents to rely heavily on petrol generators—an approach that is both costly and environmentally unsustainable.
According to recent reports, Lagos businesses consume over 6.6 billion liters of petrol annually, resulting in carbon emissions that exceed 17 million tons.
The proposed gas-fired power plants will be strategically located near existing distribution company substations, ensuring efficient integration with the grid.
Each of the four hubs will have a required minimum capacity of 100 MW, with a target to collectively generate up to 500 MW, allowing Lagos to better support its industrial, commercial, and residential energy needs.
“The state’s rapid urbanization and expanding economy have made energy security a top priority,” the MEMR statement read, arguing, “Developing our own power infrastructure is critical to reducing dependency on the overstretched national grid.”
The statement said companies submitting a bid must guarantee a minimum output of 100 MW per site, aligning with Lagos’ commitment to ensure robust and consistent power generation.
For consortia bids, the statement continued, a lead company will be designated to coordinate the project, ensuring accountability and streamlined operations.
“With this initiative, Lagos is setting the stage for a reliable energy future, reducing its dependence on the national grid and positioning itself as a hub for sustainable energy solutions in West Africa,” MEMR statement noted.