In a significant move to address Lagos State’s ongoing energy crisis, the Lagos State Government has issued an open call for bids from independent power producers and energy solution companies to establish gas-fired power plants.

The initiative, unveiled by the Ministry of Energy and Mineral Resources (MEMR) in collaboration with the Office of Public-Private Partnerships (OPPP), is designed to generate up to 500 megawatts (MW) of electricity across four dedicated energy hubs in Lagos.

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This ambitious project is part of the Clean Lagos Electricity Market (CLEM) initiative, aimed at enhancing energy security and sustainability within Africa’s largest metropolitan area, with over 20 million residents.

Current electricity distribution in Lagos falls significantly short, with supply often limited to less than 2,000 MW at peak times, despite demand exceeding 6,000 MW.

Closing the Energy Gap

The project, according to MEMR, includes strategically positioned hubs near existing Distribution Companies (DisCos) substations, allowing optimal power distribution.

Each hub is expected to house a gas-fired plant with a minimum capacity of 100 MW per participating company, aiming to boost the state’s energy supply and address the growing needs of Lagos’ industrial, commercial, and residential sectors.

“The Clean Lagos Electricity Market is crucial to bridging the gap between our energy demand and supply.

This project will support the state’s dynamic economic growth and ensure a stable energy future,” a government spokesperson commented.

Strengthening Energy Security and Sustainability

The Lagos State Government emphasized its commitment to long-term energy security through the initiative, which it sees as a step toward reducing the city’s dependence on the national grid and bolstering Lagos’ leadership in sustainable energy solutions.

Each of the four hubs has a target generation capacity of 500 MW, with support available to private-sector investors for project financing, engineering, construction, commissioning, and plant operation.

Additionally, companies involved in the project will be responsible for securing a steady fuel supply, primarily natural gas, to maintain continuous operations.

The minimum generation capacity of 100 MW per plant is non-negotiable, underscoring the state’s dedication to robust infrastructure that meets Lagos’ demanding energy needs.

Encouraging Investment and Innovation

To attract a mix of technical and financial expertise, the state welcomes bids from both individual companies and consortia, with one company required to serve as the lead in consortium bids.

Detailed application guidelines are available at www.ppplagos.lagosstate.gov.ng, with additional inquiries directed to info@ppplagos.ng.

“Our goal is to foster a competitive environment that draws top-tier energy companies to Lagos. We’re confident this project will bring world-class innovation and expertise to our energy sector,” said the MEMR.

What You Need to Know

As Nigeria’s most populous state, Lagos not only accounts for a large share of the country’s electricity consumption but also relies heavily on petrol for power, consuming around 6.6 billion liters annually.

This dependency contributes to an estimated 17.8 million tons of carbon emissions each year, driven largely by the city’s limited and unreliable grid supply.

The planned power plants represent a critical step in meeting Lagos’ energy needs and reducing its reliance on the national grid, while contributing to a cleaner, more sustainable energy landscape.

With these initiatives, Lagos State hopes to meet the demands of a rapidly growing population and position itself as a leader in sustainable energy development.

In a tragic attack early Tuesday, suspected bandits killed 10 people in Wayam, a community within Sabon-Gari District in Rafi Local Government Area of Niger State.

The gunmen reportedly arrived on motorcycles and began firing indiscriminately, causing widespread panic and chaos among residents.

According to local sources, the assailants fatally shot three individuals and slaughtered two women who resisted their advances. Five others succumbed to gunshot wounds later in the day. The bandits also set fire to homes and food supplies before fleeing the scene, leaving the community in ruins.

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A resident, speaking on condition of anonymity, described the situation as dire, adding that most villagers had fled Wayam out of fear of further violence. “The community is practically deserted now,” the source revealed.

This latest incident follows a similar attack six months ago, where bandits targeted Madaka, a nearby community, resulting in the death of 60 people. The continuous violence has heightened concerns about security in Niger State’s rural areas.

Efforts to reach the Niger State Police Command for comments were unsuccessful as the Public Relations Officer, SP Wasiu Abiodun, was unavailable at the time of this report.

Nigerian Electricity Distribution Companies (DisCos) have introduced a new wave of price hikes for electricity meters, marking the second increase within four months.

According to recent announcements, the cost of single-phase meters has risen from approximately N117,000 to N149,800, representing a 28.03% increase, depending on the distribution company and meter vendor.

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The changes, disclosed on the DisCos’ official X (formerly Twitter) handles, took effect on November 5, 2024.

The price hike is attributed to the Nigerian Electricity Regulatory Commission’s (NERC) recent deregulation of meter asset providers, part of a policy introduced in April 2024.

The new policy seeks to foster a more competitive metering market, where prices are now set through competitive bidding rather than being regulated, aiming to improve service delivery and pricing transparency.

Prices vary significantly across the DisCos, based on location, vendors, and meter type.

Eko DisCo’s single-phase meters range between N135,987.5 and N161,035, while three-phase meters are priced between N226,600 and N266,600.

In contrast, Abuja DisCo customers will pay between N123,130.53 and N147,812.5 for single-phase meters and N206,345.65 to N236,500 for three-phase meters.

Other DisCos, including Ibadan, Kano, and Kaduna, also announced their specific pricing tiers, showing a general trend of rising costs across the board.

The deregulation under NERC’s Metre Asset Provider (MAP) scheme is a shift away from centrally regulated and often subsidized meter pricing.

By removing these operational restrictions, NERC anticipates that the market will foster greater competition among meter providers, thereby benefiting end-users with improved quality and accountability.

However, vendors must adhere to regulatory standards to ensure service reliability.

Despite these anticipated benefits, the price hikes have sparked renewed concerns among electricity consumers.

Many are worried about the affordability and accessibility of meters, which are essential for accurate billing and efficient energy management.

With deregulation, DisCos and customers are expected to gain more flexibility to negotiate favorable deals, although the immediate impact for consumers appears to be an increase in costs.

The Nigerian electricity sector, long troubled by inefficiencies and supply issues, faces a period of adjustment under these new market dynamics.