Lagos will be Africa’s model for energy market transformation – Sanwo-Olu

Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu, has said that his administration is committed to ensuring that Lagos becomes a model for electricity market transformation in Africa.

He disclosed that his government is deliberately implementing policies that will encourage private sector participation, improve regulatory oversight, and build investor confidence.

The governor, represented by his Deputy, Dr Obafemi Hazmat, spoke on Friday, at the Lagos Commodities and Futures Exchange Breakfast Meeting on the Importance of the Energy Bill to the Capital Market with the theme, ‘Building a Competitive Electricity Marketplace: Strategies to Attract Investments and Boost Confidence in the Lagos Electricity Market Using the Capital Market’.

He noted: “As Nigeria’s economic nerve centre, Lagos understands the critical importance of a reliable, competitive, and investor-friendly electricity market. Therefore, the state government remains committed to creating an enabling environment that encourages investments in power infrastructure and renewable energy solutions.”

Underscoring the vital role the capital market plays in unlocking new investment channels for the electricity sector, he stated the need to provide a structured platform that enables both local and international investors to finance large-scale energy projects, through instruments such as energy bonds, power purchase agreements, and electricity derivatives.”

He, therefore, called for collaboration from stakeholders.

Sanwo-Olu urged stakeholders, financial institutions, investors, and policymakers to work collaboratively in leveraging the capital market for energy sector growth.

“Together, we can build a competitive, reliable, and sustainable electricity marketplace that serves the needs of our people and businesses,” the governor said.

Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, in his address, disclosed that the Clean Lagos Electricity Market (CLEM) aims to eliminate the culture of blackouts across Lagos State by taking systemic steps to execute the state Electricity Bill, which would involve positioning strong market institutions, deploying appropriate tools, perfecting value chain delivery capacity and attracting new investments for a sustainable turnaround of the situation with partners across the energy value chain.

Earlier, in his goodwill message, the Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, represented by Executive Commissioner, Operations, Mr. Bola Ajomale, stated that collaboration between capital market operators, government agencies, and development finance institutions is crucial for unlocking the full potential of market-based financing for the power sector.