Reported by Weng Patrick Atokor l Journalist at Weng Global
Lagos State depends on an estimated 4.5 million generators to supplement electricity supply as Nigeria’s national grid meets only about 20 per cent of the state’s electricity demand, Commissioner for Energy and Mineral Resources Biodun Ogunleye has disclosed.
The revelation highlights the scale of Lagos’ electricity supply challenges and the growing dependence of households, businesses and industries on privately generated power to sustain daily activities.
Ogunleye said the widespread use of generators reflects the gap between electricity demand and available supply, creating additional financial pressure on residents and businesses while contributing to environmental pollution.
The commissioner made the disclosure while discussing the challenges facing urban development and the need to improve infrastructure across Lagos.
Lagos’ Electricity Supply Gap
According to Ogunleye, the state has approximately 4.5 million generators operating across residential and commercial areas.
The figure was highlighted in a study conducted by Sustainable Energy for All (SEforALL) in collaboration with the Lagos State Government in 2024.
The study examined the scale of generator dependence in Lagos and its implications for electricity access, energy costs and environmental sustainability.
It estimated that generator operations across the state contribute approximately 39 million tonnes of carbon dioxide equivalent emissions annually.
The findings demonstrate how deeply private electricity generation has become embedded in Lagos’ energy system.
For many residents, generators provide an alternative when electricity from the national grid is unavailable or insufficient.
Small businesses, shops, restaurants, offices and manufacturing operators also depend on privately generated electricity to maintain operations and avoid interruptions.
However, the arrangement comes with additional costs, particularly as users must independently finance fuel, equipment maintenance and repairs.
Businesses and Residents Face Rising Energy Costs
The dependence on generators has created a significant financial burden for households and businesses operating in Lagos.
Businesses that rely on generators must incorporate fuel and maintenance expenses into their operating costs, potentially affecting their profitability and the prices of goods and services.
In April 2025, the Lagos State Government disclosed that residents were spending an estimated ₦14 trillion annually on fuel for electricity generation.
Ogunleye also highlighted the enormous volume of fuel consumed by generators across the state, demonstrating the economic consequences of inadequate electricity supply.
For small and medium-sized enterprises, the cost of maintaining alternative electricity sources can limit expansion, investment and employment opportunities.
The situation also affects households, particularly those already struggling with the rising cost of living.
Lagos Government Pursues Alternative Electricity Projects
The Lagos State Government has been exploring alternative electricity arrangements to reduce dependence on the national grid and improve power supply across the state.
Ogunleye identified local electricity infrastructure and embedded generation projects as important components of the government’s strategy.
One of the initiatives is the Victoria Island Power project, which is designed to improve electricity supply to businesses within the commercial district.
The project includes plans for 40 megawatts of embedded generation capacity and a dedicated underground electricity feeder network spanning 12.6 kilometres.
The commissioner also highlighted the planned rehabilitation of the Akute independent power plant, which has 26 megawatts of base contracted capacity.
The rehabilitation is expected to support electricity supply to public services.
These initiatives form part of the state’s broader efforts to develop electricity infrastructure that can respond to local demand.
However, their eventual impact will depend on implementation, investment and the ability to deliver reliable electricity to consumers.
Electricity Reforms Underway in Lagos
Lagos has also taken steps towards establishing an independent electricity market following the Electricity Act 2023, which allows states to develop and regulate electricity markets within their jurisdictions.
The state introduced its Electricity Law in 2024 and subsequently established the Lagos State Electricity Regulatory Commission and the Lagos Independent System Operator.
The institutions are expected to support electricity regulation, market development and coordination of the state’s power system.
The reforms could create opportunities for private investors and independent electricity producers to develop projects targeting areas with significant electricity demand.
However, regulatory changes alone cannot eliminate the state’s electricity deficit without substantial investment in generation, transmission and distribution infrastructure.
Environmental Impact of Generator Dependence
Beyond the economic burden, the widespread use of generators presents environmental challenges for Lagos.
The SEforALL study estimated that generator operations contribute approximately 39 million tonnes of carbon dioxide equivalent emissions annually.
Generators also produce air pollutants and noise that affect residential and commercial neighbourhoods.
The situation presents a challenge to Nigeria’s broader energy transition objectives, particularly its commitment to achieving net-zero emissions by 2060.
Expanding access to reliable electricity from cleaner energy sources, including solar power and other renewable technologies, could help reduce dependence on fossil-fuel generators.
However, affordability, financing and infrastructure development remain important considerations in making alternative energy solutions accessible to households and businesses.
Why Lagos’ Electricity Challenge Matters
Lagos is Nigeria’s commercial and financial centre, with millions of residents and businesses depending on reliable electricity to support economic activities.
Persistent electricity shortages increase production costs, affect business operations and place additional pressure on household finances.
The state’s dependence on millions of generators also illustrates the wider difficulties facing Nigeria’s electricity sector, where inadequate supply continues to affect economic productivity.
For Lagos, improving electricity access is therefore closely connected to industrial development, investment, employment and the overall cost of living.
The government’s ability to expand alternative electricity infrastructure and implement its regulatory reforms will be important in determining whether residents and businesses can gradually reduce their dependence on generators.
The central challenge remains ensuring that reliable electricity becomes more accessible and affordable across the state.
Weng Global – Stories beyond borders
Sources
- Punch – Reporting on Lagos’ estimated 4.5 million generators and comments by Commissioner Biodun Ogunleye.
- Sustainable Energy for All (SEforALL) – 2024 Lagos generator dependence study.
- Lagos State Government – Electricity infrastructure and energy market development initiatives.
- The Guardian Nigeria – Reporting on Lagos residents’ estimated annual generator fuel expenditure.
- BusinessDay – Reporting on Lagos urban regeneration and infrastructure development.
