Some states such as Lagos, Osun, and Ekiti others are accelerating plans to establish independent power plants in the wake of the persistent national grid collapses.
The frequent grid failures have severely impacted economic activities, disrupted essential services, and caused widespread frustration across the country.
Recognising the limitations of the national grid, these states are now taking matters into their own hands to secure a more resilient energy future.
Nigeria’s commercial capital Lagos have invited bids for construction of up to 4,000 megawatt (MW) gas-fired power plants to cover a national grid shortfall, seeking to end years of blackouts that have hit businesses and households.
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The state government of Lagos, a fast expanding metropolis of more than 20 million residents, said it required 6,000 MW of electricity but was receiving only 2,000 MW at most from the grid.
It has now allocated four hubs for the construction of power stations under its Clean Lagos Electricity Market plan.
“The minimum expected generating capacity for each of the four hubs will be 500 MW, which one or more generating power firms shall generate,” the state’s ministry of energy and mineral resources said in a public notice.
Selected companies would be expected to arrange their own financing based on a power purchase agreement with the state.
In Ekiti, the state government has granted operational licences to 14 electricity investors as part of efforts to secure energy independence for the state.
In a statement shared on X handle, Biodun Oyebanji, governor of Ekiti state disclosed that the licensed investors include three distribution companies, four generation companies, two mini-grid providers, and five meter asset providers.
He described the move as a strategic step towards improving power generation, distribution, and reliable metering across Ekiti.
“This strategic move will enhance power generation, ensure efficient distribution, and provide reliable metering for our residents,” the governor stated.
Ekiti currently receives only about 20-25 megawatts from the national grid, far below the estimated 120 megawatts needed to meet local demand.
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“Our goal is to reach 130 megawatts through a robust state grid, reducing our dependency on the national supply and promoting sustainable, locally managed energy solutions,” Oyebanji explained last Thursday.
In Osun, the state government plans to embark on power generation for the state using available river and solar assets.
Ademola Adeleke, the governor of Osun state who spoke in Ilesa, Osun State during the flag of the construction of the 33kv Feeder line, said his vision was for Osun to be self-sufficient in power supply and also export to neighboring states.
The governor recalled that the project was abandoned for over 11 years, adding that during the period it was in limbo, residents of Obokun and 3 other local government areas suffered untold hardship, blackout, and economic loss.
“We have a robust plan to transform the state energy and electricity market through appropriate policy and legislation. I am therefore elated to repeat that Osun has a draft electricity bill and policy that will expand power generation and distribution.
“The policy and the bill, when finally passed into law, will change the face of Osun electricity space. Being so blessed with many rivers and solar assets, we will generate our electricity. We will issue licenses for those capable of generating electricity. We will regulate our power distributor, the Ibadan Disco. We will manage the relationship between power generators and purchasers. The new plan will create a regulatory agency for the state power sector,” Adeleke said.
Benue State has also expressed readiness to have a power plant in the state.
Raymond Asemakaha, the managing director of the Benue Investment and Property Company said the power plant would be geared towards generating electricity to boost socio-economic development across communities in the state.
Asemakaha asked the electricity company to set up a pilot plant in Benue State, maintaining that it was necessary for the state to own a power generation plant that would transform the state and stimulate economic activities.
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He said, “We know that one thing that stimulates the economy is when you have enough power. So, we are looking for options to ensure that the state generates its power and shares it with its communities.”
The World Bank says that four in 10 people in Nigeria, Africa’s most populous nation, do not have access to electricity, which investors often cite as one of the major obstacles to investing in the country.