Sanwo-Olu Signs Electricity Bill into Law
State Poised to Create Independent Electricity Market and Expand Access
Lagos State Governor Babajide Sanwo-Olu has signed the State Electricity Bill 2024, a transformative legislation aimed at addressing the state’s longstanding power challenges and creating an independent electricity ecosystem.
The signing ceremony at Lagos House, Alausa, Ikeja, was attended by key government officials, including Deputy Governor Dr. Femi Hamzat and relevant commissioners. Governor Sanwo-Olu describedthe law as a “watershed in the production and distribution of electricity” in Lagos State.
The legislation addresses multiple critical aspects of power generation, distribution, and management. It establishes a framework for creating and administering the Lagos Electricity Market, with a focus on ensuring operational efficiency and financial viability.
Regulatory institutions created under the law include the Lagos State Electricity Regulatory Commission, which will handle compliance and licensing, the Lagos Independent System Operator to oversee system reliability, and the Lagos State Electrification Agency dedicated to expanding electricity access to underserved communities.
Notable provisions in the law include the establishment of electrification funds specifically designed to finance projects in underserved areas. A Community Trust Fund will mandate licensed power-generating companies to allocate a portion of their operating expenditure towards host community development, ensuring local economic benefits.
The Power Enforcement Unit represents another component, tasked with addressing critical issues like electricity theft and infrastructure vandalism. This specialized unit underscores the law’s approach to sector management.
Commissioner Biodun Ogunleye indicated that implementation is expected to commence within six months, pending final approval from the Federal Government. The law’s objectives include ensuring affordable and reliable electricity access, promoting renewable energy, and fostering investment and innovation in the electricity sector.
By prioritizing the electrification of underserved areas and creating a competitive, transparent electricity market, the Lagos Electricity Law 2024 represents a major step towards resolving Nigeria’s persistent power infrastructure challenges. The legislation could potentially serve as a model for other states seeking to address similar systemic issues in their electricity sectors as the law’s multi-faceted approach addresses not just technical infrastructure but also economic development, energy equity, and environmental sustainability. Its potential impact extends beyond immediate power supply improvements, promising broader economic and social benefits for Lagos State’s residents.
