Lagos Urged to Unlock Idle Power to Combat Energy Crisis

Mr. Odion Omonfoman, managing director of an energy firm based in New Hampshire, has called on the Lagos State government to implement urgent reforms in its electricity market rules.

He argues that this would unlock thousands of megawatts of idle captive power currently trapped behind factory walls, hotel basements, and gated estates. Omonfoman warns that every unused megawatt represents a policy failure, as Lagos struggles to deliver 5,000 megawatts of power to its 200 million residents.

He highlights that decentralized private generation could provide an estimated 15,000 to 20,000 megawatts nationwide, with studies indicating that only 20 percent of Lagos State's electricity demand is met by the grid. Additionally, it is estimated that households in Lagos have a generator capacity of 7.3 to 8.8 gigawatts, with 72 percent owning at least one generator.

Omonfoman describes the economic implications of underutilized captive generation capacity, noting that households spend approximately N1.43 trillion annually on fuel for generators, while commercial diesel and petrol users spend about N5.3 trillion each year.