Governor Babatunde Fashola Speaks on the Impact of Improved Power on the Lagos Economy

Finding a lasting solution to the power epidemic in Nigeria remains elusive, despite discussions being held, conferences organized and policies implemented to provide stable energy. Billions of dollars have been expended to this regard, still the problem lingers. The country still generates a lowly 3000 to 4000MW, despite an installed capacity of 6000MW as a result of poor maintenance and dilapidated infrastructure.

Plans to raise output to 10,000MW by the end of 2013 fell through, with current generation dropping further from 4000MW to 3000MW, owing to inconsistencies in gas supply, according to official government statements. Nigerians have persistently been promised improved by several governments and electorate-seeking campaigners, but are still faced with regular blackouts and epileptic services, resulting in higher operating costs for businesses and forcing a downturn in economic growth.

The recent privatization of the power sector, which has seeded ownership of most power assets to private sector, has been viewed as a healthy way forward, with the attraction of an increased profit margin expected to spur a much needed private sector-led investment in the sector. Significant improvement so far remains far fetched.

Lagos, Nigeria’s commercial hub, requires an even urgent push in power investment, “the power sector is a critical enabler of national economy,” explains Babatunde Fashola, Governor of Lagos state. So far significant progress has been made including the construction of two power plants recently, as well as smaller independent power projects across the state, all aimed at increasing generation supply.

To further state the need for a step up in developing the power industry, Fashola highlighted the impact of improved power on the economy of Lagos and established the need for increased investment in the sector at the recently held 7th edition of the Lagos Economic Summit (EHINGBETI 2014), themed Powering the Lagos Economy: Real Opportunities, Endless Possibilities.

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