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Among its other goals, the new law aims to establish an electricity market independent of the national grid
Lagos State Governor Babajide Sanwo-Olu on Tuesday signed into law the Electricity Bill 2024 aimed at improving power supply in the state.
Among its other goals, the new law aims to establish an electricity market independent of the national grid.
The new law builds on last year’s constitution amendment removing electricity from the exclusive legislative list and placing it on the concurrent list to decentralise electricity matters.
The shift allows the state governments to participate in generation, transmission and distribution of electricity.
On Tuesday, Gboyega Akosile, Mr Sanwo-Olu’s special adviser on media and publicity, announced the signing of the new Lagos State law via his X handle.
“The bill is a major step by the state government, to ensure 24 hours electricity supply to every nook and cranny of the State, following the FG’s nod for states to generate and distribute energy in 2023,” he wrote.
Alongside the announcement, he posted a video showing his principal signing the bill.
The development comes after President Bola Tinubu assented to the electricity bill, which empowers states, companies and individuals to generate, transmit, and distribute electricity in June 2023.
The bill
The bill will replace the Lagos State Power Sector Reform Law 2018, in furtherance of the Electricity Act 2023 signed into law by president.
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The bill aims to address electricity challenges, improve energy sustainability and foster economic growth in the state.
It aims to enhance electricity supply in Lagos State by establishing an independent electricity market.
Also, by virtue of the bill, the state electrification fund will be set up to ensure reliable electricity supply to the unserved and underserved areas in the state and attract investment.
This move is designed to reduce the state’s dependency on the national grid, which has long been plagued by power outages and ineptitude.
Power supply
In recent years, the power sector has experienced many challenges in areas of electricity policy enforcement, regulatory uncertainty, gas supply, transmission system constraints, and significant power sector planning shortfalls.
In November 2013, the federal government privatised all power generation and 11 distribution companies, with the government retaining the ownership of the transmission company. This was to improve efficiency in the sector.
However, since the privatisation, the grid has continued to collapse amid efforts to reposition the power sector.
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