Lagos seeks review of power generation, distribution law, sends bill to regulate power to Assembly

The Lagos State Government has called on the Federal Government to allow a review of Nigeria’s power generation and distribution law.

The Lagos State Commissioner for Energy, Olalere Odusote, who stated this noted that the present arrangement was poor, adding that industries, especially the manufacturing sector, spend huge amount of money on diesel daily in the state.

Odusote spoke on Wednesday at the end of the 3rd Real Estate Market Place Conference and Exhibitions organised by the Lagos State Real Estate Regulatory Authority (LASRERA) on Victoria Island.

Speaking on Sustainable Energy Solutions in the real estate, the commissioner said energy generated by individuals, corporate organisations, including real estate practitioners, usually come with huge financial burden in addition to the environmental pollution.

He said, “The country’s Real Estate sector is still begging for huge investment in the area of power to make the sector more viable and attractive to potential investors.”

He explained that this became necessary as most private individuals and businesses in Lagos utilised diesel-powered generators rather than electricity from the national grid.

The commissioner added, “The two power distribution companies in Lagos State – Eko Disco and Ikeja Electric – established nine years ago, sell about 800 to 900 megawatts initially and have only improved to 800 to 1,000 megawatts nine years after.

“Nothing has changed in the national grid sector nine years after. However, Lagos State within a spate of nine years had grown from having about 8,000 megawatts of installed diesel capacity to about 23,000 megawatts.

“The diesel market of the off-grid market has grown by about 300 per cent but the grid market has not grown at all or just about one to two per cent.”

Odusote pointed out that Lagos had been projected to be city with the largest population in the world in 50 years, adding that energy for the housing infrastructure needed for the population must be put into consideration.

“That is why the state government came up with the Lagos Electricity Sector Policy, with the aim of providing universal access to electricity for all residents.

“The draft of the Lagos electricity is before the state’s House of Assembly for consideration.

“The bill, when it becomes law, will take regulation of electricity from the centre and domicile it with the Lagos regulatory agency.

“The Nigerian constitution domiciles the responsibility of regulation and distribution of electricity with the state government but when the law was passed in 2002, many states were not ready for the responsibility.

“Many housing estates in the state run on diesel generators because they are unable to benefit from the grid, yet they cannot share from the excess capacity they currently have because the Federal Government does not permit it.

“Lagos is now ready, willing and in the process of passing the law. It means we will be able to locally determine our faith when it comes to electricity.”

The commissioner added that the state was working with the Federal Government to ensure that its law is reviewed and the new law passed at the National Assembly aligned with the state’s law.

The Special Adviser to the Governor on Housing, Mrs Toke Benson Awoyinka promised that LASRERA will sustain the use of sanctions to rid the industry of fraudulent real estate agents.

She added that the state government was determined to ensure that there was sanity in its real estate environment.