Lagos State is widely referred to as Nigeria’s financial, industrial and commercial nerve centre with several manufacturing industries and financial institutions. The State accounts for about 65% of the nation’s industrial investments, foreign trade and commercial activities. It also accounts for about 45% of all labor emoluments paid nationwide. Lagos State as one of the rapidly growing cities in the world has a vision of becoming Africa’s model mega city and a global, financial and economic hub that is secure, productive and functional. To achieve this admirable objectives, there is need to channel investment towards solving the Lagos power problem.
At the heart of this all, the Government of Lagos (LASG) will have to work with the Federal Government to develop a comprehensive national power supply strategy that meets the needs of the state. This power sector strategy will have to be driven by cutting-edge research, incorporate environmentally friendly generation, distribution and transmission, and should be governed by fair regulation.
Poor power supply and incessant outages have hindered development in Nigeria. Several issues such as poor maintenance, inadequate funding, poor electricity pricing, private monopoly, lack of energy mix, inadequate gas supply and pipeline vandalism have plagued the power sector consistently. Several scholars have even argued that the sector requires an estimated US$ 48 billion worth of investments over the next 10 years if it is to meet the current capacity demand. Nigeria also requires investments in the other fragments of the electricity supply chain especially to develop gas processing facilities, gas fields and gas pipeline networks. A substantial level of investment is also required to upgrade the existing distribution infrastructure.
Only last month, The Lagos State Governor Mr. Babatunde Fashola (SAN) alluded that a solution to the problem of inadequate power supply could be implemented in six months if the successor companies responsible for distribution (DISCO's) were ready to yield some portion of their concessions to the state government. In recent years, the government of Lagos has also demonstrated a willingness to provide practicable solutions to the problems of power supply shortage. I recall that at the commencement of the 4th republic in 1999, under the leadership of Senator Bola Tinubu the Government of Lagos State entered into a Power Purchase Agreement (PPA) with Enron for the purchase of electricity in what was to become the first Independent Power Project in Nigeria. In view of the legal and regulatory regime at that time, the arrangement was for LASG to buy power from Enron and for same to be distributed by the defunct NEPA to the geographical areas specified in the PPA. In June 2001, the plant commenced feeding an aggregate capacity of 270MW into the national grid yet LASG was unable to attract maximum benefit from its investment due to a hostile regulatory regime backed by the ruling PDP.
Earlier this year, LASG in partnership with the UK Department for International Development (DFID) kicked off an ambitious solar power project set to light up 172 Public Schools and 11 Flagship Public HealthCare Centers (PHCs) across the state. This project is aimed at providing sustainable renewable energy solutions for schools and Primary HealthCare Centers as well as undeserved communities in Lagos State. Similarly, under the leadership of Gov. Babatunde Fasola, LASG has successfully through Public Private Partnerships (PPP) developed 5 IPP's and commenced distribution to government owned facilities within the state. As of today, all of these assets are under-utilized and unable to evacuate their excess power to willing buyers within the State. The LASG IPP's have been compelled by the regulators to operate within the ambit of the captive license issued them to the detriment of the state.
The emergence of Gen. Buhari and Prof. Osinbajo as President-elect and Vice President-elect respectively could well signal a new beginning as Lagos is set to experience a change in fortune and will finally be able to optimally utilize its power generating assets to catalyze rapid growth and development across the state. However, for this to happen, the good people of Lagos State will have to elect Mr. Akinwunmi Ambode the APC gubernatorial candidate as their next governor. This will mean that LASG will finally be aligned politically with the federal government and can commence a strategy formulation process that will involve structural, organizational and institutional issues concerning power supply and management, including establishing clear roles and responsibilities in the transmission and distribution functions between the Federal level and the State. The State Government will also get a chance to encourage and work with the Federal Government to finalize the Gas Master Plan for the benefit of Lagosians.
As the gubernatorial elections in Lagos draw closer, now is the time for Lagosians to do away with sentiments and vote strategically to elect a leader that can attract the support required to transform Lagos into a true mega city.
The author Moses Nasamu (@Mos_Hygh) is an Electrical Engineer and a certified Management Consultant and Project Manager who practices in Lagos Nigeria. Moses is passionate about energy and infrastructure sustainability because of their combined potential to drive operational excellence in organizations and transform the socio-economic fabric of developing economies. He is currently a Director of Energy Savers Nigeria, a Non-Profit Initiative that seeks to educate communities on the benefits of energy conservation and efficiency. Click to signup for FREE news updates, latest information and hottest gists everyday
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I share a similar opinion with the writer. I think Lagos State has a lot more to benefit by aligning with the center. Enough of opposition politics in Lagos. Now is the time to consolidate and deliver the dividends of democracy to Lagosians.
ReplyDeleteOga if u are serious with your write up it means APC can never be trusted does it mean that gen buhari will become anti Lagos cos its under opposition party? If that is the case then we av made a tyrant indeed d president and truly attest that APC is a vindictive party hence they can't be trusted
ReplyDeleteI think what he was saying is that if Agbaje becomes Gov, he will be the central figure in the oposition that will be used to fight the APC goverment and this could affect support for develpment in lagos. Lagos needs a goverment that can partner with the FG and not fight always.
DeleteWa se opolopo orire! This is to the second comments. You are a very objective individual...God bless you!
ReplyDeleteNow that Ambode has won the elections, let us wait and see if Lagos will have 24 hour electricity in the next 3 months...
ReplyDelete