Lagos State Governor, Babajide Olusola Sanwo-Olu has said that his administration is committed to ensuring that Lagos becomes a model for electricity market transformation in Africa.
The Governor stated this at the Lagos Commodities and Futures Exchange Breakfast Meeting on the Importance of the Energy Bill to the Capital Market with the theme, “Building a Competitive Electricity Marketplace: Strategies to Attract Investments and Boost Confidence in the Lagos Electricity Market Using the Capital Market”, held at the Muson Centre, Onikan, Lagos.
Sanwo-Olu, who was represented by his Deputy, Dr. Kadri Obafemi Hamzat, noted that the government is deliberately implementing policies that will encourage private sector participation, improve regulatory oversight, and build investor confidence in the Lagos electricity market.
“As Nigeria’s economic nerve center, Lagos understands the critical importance of a reliable, competitive, and investor-friendly electricity market. Therefore, the state government remains committed to creating an enabling environment that encourages investments in power infrastructure and renewable energy solutions.
Speaking further, Sanwo-Olu, while underscoring the vital role the capital market plays in unlocking new investment channels for the electricity sector, stated the need to provide a structured platform that enables both local and international investors to finance large-scale energy projects, through instruments such as energy bonds, power purchase agreements, and electricity derivatives. He therefore called for collaboration from stakeholders.
He urged stakeholders, financial institutions, investors, and policymakers to work collaboratively in leveraging the capital market for energy sector growth. “Together, we can build a competitive, reliable, and sustainable electricity marketplace that serves the needs of our people and businesses”, said the governor, adding that with the Lagos State Electricity Law in place, decisive steps to decentralize power generation, enabling private sector participation, and foster a more dynamic and efficient energy marketplace and need to bring in new metres to eliminate all estimated bills within the state, are already put in place
The Governor described the theme of the event as timely and essential as the state government continues in its collective journey toward a more sustainable and resilient energy sector, adding that, “The essence is to make sure that everybody has power and then we reduce the amount of money that we spend on generators as a people, and then the environment is clean, so it’s a win-win situation.”
Earlier in his address, Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye disclosed that the Clean Lagos Electricity Market (CLEM) aims to eliminate the culture of blackouts across Lagos State by taking systemic steps to execute the state Electricity Bill which would involve; positioning strong market institutions, deploying appropriate tools, perfecting value chain delivery capacity and attracting new investments for a sustainable turnaround of the situation with partners across the energy value chain.
He added that the state government is committed to ensuring that power capacity goes up drastically in the state as the government is building a total of five energy hubs in the state.
Ogunleye therefore, called on the private sector, individuals, and stakeholders to support the government in its bid to create and ensure that power supply is well-distributed irrespective of geographical areas, tribe among others to ensure a thriving nation.
In his goodwill message, the Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, who was represented by Executive Commissioner, Operations, Mr. Bola Ajomale, stated that collaboration between capital market operators, government agencies, and development finance institutions is crucial for unlocking the full potential of market-based financing for the power sector.
His words, “I encourage all stakeholders, regulators, policymakers, investors, and market operators to deepen their collaboration and leverage the capital market as a catalyst for transforming Nigeria’s electricity sector. By working together, we can build a more competitive, transparent, and investor-friendly electricity marketplace.”
He added that SEC is committed to facilitating the listing of energy companies on the Nigerian Exchange to deepen liquidity, enhance corporate governance, and broaden investment opportunities in the power sector. He also stated the Securities Exchange Commission (SEC) will continue to implement policies that foster a stable and efficient market, ensuring that investors and issuers alike operate in a well-regulated and secure environment.
