Residential Generators: A Drain on the Economy

Lagos State has become synonymous with power outages, and the financial burden of these outages falls squarely on the residents of the state. A staggering N14 trillion is spent annually by Lagosians on fuel for their power generators, which number approximately 4.5 million. These generators consume an estimated 16 billion litres of fuel each year, with a cost that is equivalent to the annual budget of some African countries.

The Human Cost of Power Outages

The power crisis in Lagos has a profound impact on the residents, particularly the poor and vulnerable. According to the Lagos State Government, 72% of households own at least one generator, and 94% of small businesses rely on gensets. The loss of productivity and the economic costs of power outages are significant, but the human cost is even more severe.

Chronic Underinvestment and Vandalism

The state government has identified chronic underinvestment and vandalism as major obstacles to addressing the power crisis. The power sector is plagued by sector-wide liquidity issues, and the lack of estimated billing has created a culture of theft and fraud. The state government has taken steps to address these issues, but the problem is deeply entrenched.

A New Approach: Diversifying Energy Sources

The Lagos State Government is taking a bold new approach to addressing the power crisis. The government is planning to diversify its energy mix by embracing solar, gas, hydro, and other clean fuels. The state is actively pursuing Expressions of Interest for gas-fired, grid-scale solar, and captive power projects, with the aim of injecting 6 GW of power into the grid within the next three years.

Solar Power for a Brighter Future

The government is also planning to retrofit 22,000 streetlights across the state to reduce grid pressure and improve energy efficiency. This initiative is expected to provide a significant boost to the state’s energy sector, and will help to reduce the financial burden of power outages on residents.

Leadership Commitment

The leadership of Lagos State is committed to providing reliable and affordable energy to all residents. Governor Babajide Sanwo-Olu has stated that no home should remain in darkness, and the government is working tirelessly to make this vision a reality.

A National Problem

The power crisis in Lagos is not just a local problem, but a national issue that affects millions of Nigerians. The country has an estimated 20 million people without access to electricity, and the government has a responsibility to address this issue.

The Role of Natural Gas

Former Minister of Power, Barth Nnaji, has emphasized the importance of natural gas in powering the country. Nigeria has an abundance of natural gas reserves, and the government should make use of these reserves to generate electricity. Nnaji has argued that the journey to energy for all starts with having the fuel.

Conclusion

The power crisis in Lagos State is a complex problem that requires a comprehensive solution. The state government’s commitment to diversifying energy sources and providing reliable and affordable energy is a step in the right direction. However, the national government must also take action to address the underlying causes of the power crisis and provide support to the state government. Only then can we hope to achieve a future where no home remains in darkness.

• There are approximately 4.5 million power generators in Lagos homes and offices, consuming an estimated 16 billion litres of fuel annually.
• The cost of fuel for these generators is equivalent to the annual budget of some African countries.
• The Lagos State Government is planning to diversify its energy mix by embracing solar, gas, hydro, and other clean fuels.
• The state is actively pursuing Expressions of Interest for gas-fired, grid-scale solar, and captive power projects, with the aim of injecting 6 GW of power into the grid within the next three years.
• The government is also planning to retrofit 22,000 streetlights across the state to reduce grid pressure and improve energy efficiency.

“This is unacceptable in the 21st century. If we are not able to produce this and we have it, then we are not going to be able to develop power plants. Then we are not going to be able to prosper as a nation.