ALAUSA – Lagos State is launching a groundbreaking initiative: Nigeria’s first independent electricity market created by a state. This significant step promises to reshape the energy landscape in Lagos. Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, announced the development at the 2025 Ministerial Press Briefing in Alausa.
Ogunleye explained the state is merging its power policies into a single, powerful strategy. “We are consolidating our energy frameworks into one cohesive document. This document will help to streamline implementation and drive strategic partnerships,” Ogunleye stated. This new Integrated Resource and Lagos Energy Plan, awaiting Governor Babajide Sanwo-Olu’s approval, is set to improve power generation, distribution, and how residents consume energy.
Lagos Electricity Market (LEM): A New Era for Power
At the core of this energy reform is the establishment of the Lagos Electricity Market (LEM). The LEM represents a first for Nigeria: a subnational energy ecosystem operating under its own dedicated regulatory framework. This is a key part of achieving Lagos independent electricity.
Real-time digital tools will power the LEM. Ogunleye detailed, “The LEM will be powered by digital tools to monitor generation and usage in real time. This will ensure transparency, attract investors, and protect consumers.” Recent constitutional changes empower Nigerian states to manage their own electricity. Lagos is seizing this opportunity to lead with its innovative market.
Advancing Clean Energy and Local Production
Alongside market reforms, Lagos is actively promoting clean energy and developing local infrastructure. Ogunleye reported significant progress: 65 vehicles were converted to run on cleaner compressed natural gas. The state-owned IBILE Oil and Gas successfully distributed over 100 million litres of petrol and 9.6 million kilograms of LPG. “These figures show our commitment to cleaner energy and economic efficiency,” he affirmed.
To strengthen the energy ecosystem, the government is partnering with private companies. The goal is to locally manufacture essential components like electricity meters and transformers. This will support the new Lagos Electricity Market and create local jobs.
Ogunleye also addressed illegal mining activities. He stressed the government’s firm stance on enforcement. “These operations threaten not just our environment, but also the safety and livelihoods of our people. We are taking decisive action,” he warned.
By Abiodun Labi
