LAGOS: The Lagos State Government is stepping up efforts to address its persistent electricity challenges, setting a target of adding 2,000 megawatts (MW) of power supply by March 2027 while engaging 22 investors to support the expansion of its energy sector.

The proposed expansion is part of a broader strategy by the administration of Governor Babajide Sanwo-Olu to improve electricity access, reduce the burden of high energy costs on businesses and households, and strengthen Lagos’ position as Nigeria’s commercial and industrial hub.

Sanwo-Olu announced the plan on Wednesday at the 2026 Lagos Energy Summit, themed “Lagos Energy Evolution: Transforming the Future.”

The governor, who was represented by the Secretary to the State Government, Barrister Abimbola Salu-Hundeyin, acknowledged that unreliable electricity supply remains a major concern for manufacturers, small businesses and households across the state.

He said his administration was working to create a more favourable environment for investment through improved power infrastructure, regulatory reforms and stronger private-sector participation.

According to the governor, the state is restructuring its electricity market to establish clearer rules for licensing, protect consumers and ensure greater accountability among electricity providers.

He also called on stakeholders to move beyond discussions and policy proposals, stressing the need for practical solutions that would improve electricity supply and make a difference in the lives of residents.

Providing further insight into the expansion plan, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, disclosed that the state government is currently engaging approximately 22 investors to conclude transactions in the energy sector.

He explained that Lagos is also working with relevant federal authorities to address outstanding challenges surrounding Power Purchase Agreements (PPAs), which are essential to facilitating electricity transactions and attracting investment.

Beyond increasing power generation, Ogunleye said the government is focusing on strengthening transmission and distribution infrastructure to ensure that additional electricity can reach consumers.

The state’s energy development strategy also includes automating electricity assets to tackle power theft and vandalism, as well as expanding the use of alternative energy sources such as solar, wind and hydropower.

The government believes that combining private investment with improved infrastructure and regulatory reforms will help address longstanding weaknesses in the state’s electricity system.

The scale of Lagos’ electricity challenge was further highlighted by the Permanent Secretary in the Ministry of Energy and Mineral Resources, Ibilola Kasunmu.

She disclosed that Lagos, with an estimated population of 22 million people, requires approximately 6,000MW of electricity to meet its demand but currently receives less than 1,000MW from the national grid.

The huge difference between demand and available supply reflects the pressure on the state’s electricity infrastructure, particularly as its population, businesses and industrial activities continue to expand.

Kasunmu identified inadequate power generation, gas supply constraints, weak transmission infrastructure and poor electricity collection systems as major factors contributing to the shortfall.

She said the government was exploring different ways of increasing available electricity, including embedded generation, waste-to-energy projects and closer collaboration with the Federal Government.

A joint technical working committee has also been established to address some of the challenges affecting electricity development in the state.

What the 2,000MW Target Means for Lagos Residents and Businesses

If successfully implemented, the planned electricity expansion could provide additional support for Lagos’ commercial activities, manufacturing businesses and growing residential communities.

For manufacturers and small business owners who depend heavily on generators to keep their operations running, improved electricity supply could help reduce operating expenses and ease the pressure of rising energy costs.

Households could also benefit from more reliable electricity, although the actual impact will depend on how effectively the additional power is transmitted and distributed across different communities.

However, meeting the March 2027 target will require more than investment commitments. The successful completion of energy transactions, resolution of outstanding regulatory issues, availability of gas, and development of transmission and distribution infrastructure will all be important.

With Lagos facing an estimated electricity demand of 6,000MW against less than 1,000MW currently received from the national grid, the proposed 2,000MW expansion represents a significant part of the state’s efforts to close its energy gap.

The major test for the Sanwo-Olu administration will be translating its investment drive and policy reforms into dependable electricity that businesses and residents can actually access.

RapidoSpace News will continue to track developments in Lagos’ energy sector, particularly the progress of the proposed 2,000MW expansion and its implications for electricity consumers and businesses.