Lagos, the commercial capital of Nigeria, is taking a major step to solve its ongoing electricity shortage problem. The state has invited companies to bid for the construction of gas-fired power plants with a total capacity of 4,000 megawatts (MW). This new initiative is part of an effort to end the blackouts that have been affecting businesses and residents for years.

With a population of over 20 million people, Lagos needs about 6,000 MW of electricity. However, the state currently receives only around 2,000 MW from the national power grid, leaving a significant gap. To meet this demand, the Lagos state government has planned four locations where new power stations will be built. Each of these stations is expected to generate at least 500 MW, and the companies selected for the project will be responsible for arranging their own financing through agreements with the state.

This move comes after President Tinubu’s decision to allow state governments to generate and distribute their own power, replacing the old law that gave this power exclusively to the federal government. This change has opened the door for more private companies to invest in power generation.

In the past, electricity tariffs in Nigeria were too low to attract investment from private power producers. However, the government is now working to eliminate subsidies on electricity, which should make the sector more attractive for investors.

Although Nigeria has the potential to generate 13,000 MW of power, its aging grid can only distribute about a third of that capacity. As a result, many businesses and homes rely on costly fuel-powered generators. In fact, the country’s national grid collapsed nine times this year alone, underlining the urgent need for more reliable power generation.

By building these new power plants, Lagos hopes to improve electricity access for its residents and businesses, reduce the need for expensive generators, and support the city’s growing energy demands.