The chairman of Geregu Power Plc Mr. Femi Otedola has disclosed plans to develop a power transmission project in partnership with the Lagos state government.
He disclosed this on his social media handle after a meeting with the Lagos state Governor Mr Babajide Sanwo-Olu and the President of the African Development Bank Group Dr Akinwunmi Adesina in Lagos state.
If the project comes to light, it will be the first of its kind in Nigeria as hitherto, private individuals were not allowed to transmit power in the country.
Nigeria’s electricity act 2023
The move comes on the heels of the recently signed Nigeria Electricity Act 2023 by President Bola Tinubu which grants state government and private individuals the license to transmit electricity in areas covered by the national grid. According to the provisions of the law, states, companies and individuals can generate, transmit and distribute electricity in the country.
The law also demonopolized electricity regulation by transmitting such responsibilities to state governments anytime they establish their regulatory agency.
Lagos State’s electricity plans
Nairametrics earlier reported the Lagos state government plans to fully take advantage of the new electricity act and establish a sustainable electricity market with a strong commercial framework.
In another report by Nairamterics, the state identified public-private partnerships as key in driving investment in the power sector.
Power transmission has been a major problem in Nigeria- the country has persistently witnessed transmission grid collapse. In 2022, the national grid collapsed over 10 times necessitating a national blackout on every occasion. While Nigeria has a generation capacity of 22000 megawatts, the country can only transmit about 4000 to 6000 megawatts of electricity.
Lagos state is Nigeria’s biggest economy, and the fifth biggest economy in Africa. Its GDP in 2022 stood at $29 billion. The state electricity demand in 2020 was 10,000 megawatts and the power supply was only 1900 megawatts.
Femi Otedola is a billionaire investor with business interests in oil and gas, power, banking, shipping, real estate etc. He is the chairman of Geregu Power plc, one of the major shareholders in First Bank plc.