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Lagos residents spend 14tn naira yearly on generator fuel

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Lagos Generator Fuel Cost

Lagos residents spend an estimated 14tn naira annually on fuel for 4.5 million generators, consuming 16 billion litres, says Commissioner at Energy Summit

Lagos State residents are estimated to spend a staggering 14tn annually on fuel to power their approximately 4.5 million electricity generators, according to the Commissioner for Energy and Mineral Resources, Biodun Ogunleye.

Also read: Lagos Government responds to devastating gas tanker explosion, pledges tougher safety measures

Speaking yesterday at the opening of the Lagos Energy Summit, themed ’The Journey to Energy for All’, Ogunleye stated that these generators collectively consume around 16 billion litres of fuel each year. He lamented the decades-long culture of blackouts endured by Lagosians.

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Ogunleye highlighted a landmark Energy Access Diagnostic Study conducted by the Ministry in collaboration with SEforALL, revealing the deep reliance on self-generated power.

The study indicated that 72 per cent of households own at least one generator, 94 per cent of small businesses depend on them, and 76 per cent of market clusters cannot operate without generators.

He further revealed the environmental impact, stating that these generators emit 38 million tonnes of CO annually, a figure exceeding the emissions of entire countries like Togo, Rwanda, and Gabon.

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Collectively, these generators produce an astonishing 21,000 megawatts of power “privately, inefficiently, and expensively”.

Ogunleye noted that the signing of the Electricity Act in 2023 by President Bola Tinubu and the subsequent Lagos Electricity Law by Governor Babajide Sanwo-Olu have empowered the state to take control of its electricity market and diversify its energy mix towards solar, gas, hydro, and other clean fuels.

He disclosed plans to pursue Expressions of Interest for gas-fired, grid-scale solar, and captive power projects aiming to inject 6 GW of power into Lagos within the next three years, alongside retrofitting 22,000 streetlights for energy efficiency.

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Governor Sanwo-Olu, in his address, deemed Nigeria’s persistent poor electricity supply in the modern age “shameful,” vowing that in building a smart city, no home should remain in darkness.

He outlined a vision for a 24/7 Lagos economy powered by clean, reliable, and affordable energy, aligning with global climate goals and Nigeria’s energy transition objectives.

Former Minister of Power, Barth Nnaji, the keynote speaker, urged the Federal Government to leverage Nigeria’s abundant gas reserves for power generation, commending Lagos State’s efforts to provide electricity for millions without access.

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He stressed the necessity of fuel availability for power plants, advocating for natural gas as the primary fuel for the next 20 years, given Nigeria’s vast reserves.

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NNPC, Sahara Group to collaborate on energy access

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NNPC Sahara Group

The Nigerian National Petroleum Company Limited (NNPC) is set to collaborate with Sahara Group to promote energy access and sustainability

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