By Kayode Olopade
The Governor of Lagos State, Babajide Sanwo-Olu, has reaffirmed his administration’s commitment to ending the persistent blackout crisis in the state, as government officials and key stakeholders in the electricity sector converged to chart a sustainable path towards improved power supply.
Sanwo-Olu made this known at the Lagos State High-Level Strategic Power Town Hall on Thursday, August 20, 2026, held to critically assess the state’s electricity situation and develop practical solutions to the challenges affecting generation, transmission and distribution.
The high-level engagement brought together stakeholders across the electricity value chain, including regulators, power distributors, transmission operators, asset managers, investors, and representatives of the federal government.
Speaking at the event, the Special Adviser to the President on Power and Chairman of the Presidential Taskforce on Power Sector Reset and Restoration, Dr. Rilwan Lanre Babalola, said the challenge before Lagos and Nigeria was no longer simply about generating more electricity, but about building a functional and sustainable electricity market.
Babalola said the country must move away from a system where government continuously acts as buyer, guarantor and absorber of losses across the electricity value chain.
He explained that the proposed Clean Lagos Electricity Market (CLEM) could provide a practical model for transforming Lagos’ huge electricity demand into a structured and investible market through demand aggregation, bilateral contracting, open access, payment assurance and transparent settlement.
According to him, the proposed initial 500-megawatt CLEM project must first prove that electricity can be reliably delivered, properly metered and paid for before the model is scaled.
He said stakeholders must be able to establish where the demand and customers are, where electricity and gas will come from, whether the network can deliver the power, the efficient tariff and how payments will move transparently to generators, network operators and gas suppliers.
Babalola also highlighted the importance of decentralisation following constitutional amendments and the Electricity Act, which have opened the way for states to establish and regulate their electricity markets.
He, however, cautioned that decentralisation must not become fragmentation, stressing the need for clear coordination between state electricity markets, the Nigerian Electricity Regulatory Commission, interstate electricity trading and the national transmission network.
Also speaking, Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the town hall was convened to bring an end to what he described as the culture of blackout in Lagos.
Ogunleye said the state had undertaken studies and brought together key players in the sector to identify the actual problems affecting electricity supply and collectively determine a way forward.
He disclosed that Lagos currently receives less than one gigawatt of electricity from the national grid, despite the Transmission Company of Nigeria having the capacity to transmit about 3.5 gigawatts.
The Commissioner said the state’s planning was aimed at securing an additional two gigawatts, with the ultimate goal of moving towards about 3.5 gigawatts of electricity supply.
He explained that achieving the target would allow more feeders to operate and provide increased electricity to homes and industries that require reliable power for productive activities.
Ogunleye also disclosed that newly commissioned substations would contribute to the state’s power infrastructure, while the government would work with distribution companies to monitor selected feeders and measure improvements in electricity supply.
On electricity tariffs, he stressed that consumers must not be made to pay for darkness, noting that improved metering and infrastructure must accompany any tariff increase.
The Chief Executive Officer of the Lagos State Electricity Regulatory Commission, Temitope George, identified constraints in generation and transmission, energy theft, vandalism and non-payment of electricity bills as major challenges affecting the sector.
George said electricity demand in Lagos, which had previously exceeded 1,500 megawatts, had recently dropped to below 1,000 megawatts.
She urged electricity consumers to pay for the power they consume, warning that non-payment distorts the electricity market and ultimately affects the ability of other consumers to receive adequate supply.
The regulator also disclosed that Lagos State was restructuring its existing Independent Power Projects to make them bankable without placing excessive pressure on the state’s finances.
According to her, the state is also exploring embedded power generation to complement electricity from the national grid and reduce overdependence on the national system.
George said the ongoing decentralisation of the electricity sector should ultimately produce a more effective electricity market in Lagos, while emphasising the state’s intention to maintain collaboration with relevant federal institutions.
The town hall ended with a commitment by stakeholders to translate the discussions into concrete action points, establish measurable baselines and periodically assess progress.
With Lagos currently receiving less than one gigawatt from the national grid against its ambition of about 3.5 gigawatts, the state government’s next challenge will be turning the plans, partnerships and infrastructure investments discussed at the town hall into reliable electricity for residents, businesses and industries.
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