In a bid to drive economic growth and reduce carbon footprints, the Lagos State Government and the Rural Electrification Agency (REA) have signed a Memorandum of Understanding (MoU) to expand reliable electricity through innovative renewable energy solutions.
This partnership will tap into the World Bank’s $750 million funding for the Distributed Access through Renewable Energy Scale-up (DARES) project, which aims to increase access to electricity services for households and Micro, Small, and Medium Enterprises (MSMEs) through private sector-led distributed renewable energy generation.
The collaboration which aligns with global trends of reducing reliance on fossil fuels for electricity is also expected to improve the lives of Lagosians and businesses while fostering economic growth and environmental sustainability across the state.
While highlighting the need for adequate infrastructural development in sustainable energy, the state governor, Babajide Sanwo-Olu, noted that despite generating significant power in Lagos, distribution remains a major challenge, leaving many small businesses without access to reliable electricity.
Sanwo-Olu, who was represented by his Deputy, Femi Hamzat, during the event held in the Victoria Island axis of the state on Monday, pointed out other major challenges faced by small enterprises to operate effectively.
The governor lamented the burden of inflated electricity bills, often based on estimates rather than actual usage, emphasizing that adopting renewable energy sources would help alleviate this challenge and provide a more sustainable solution for the state’s power needs.
“We know we generate a lot of power in Lagos, but it doesn’t get distributed to everybody because it’s isolated. We have a number of SMEs, all these small companies, people that are trying to survive, and the common denominator for them is power; they don’t have power,” he said.
“Those are the challenges that we have. Our people are suffering because of estimated bills. What we are doing today looks very small, but it’s important; this is the need of the people. We are extremely excited. It’s very clear that this is a pipeline of activities that can really help us in terms of power production. What we would like to do is actualize the implementation plan,” the governor added.
Also present at the event was the Commissioner for Power and Mineral Resources, Biodun Ogunleye, who highlighted the need for sustainable energy solutions to address the myriad challenges faced by small-scale businesses, rural transportation systems, healthcare facilities, and agricultural sectors in Lagos.
Ogunleye emphasized that these sectors offer significant opportunities for growth, development, and job creation, particularly with the adoption and integration of renewable energy technologies, innovative energy storage solutions, and smart grid infrastructure.
Meanwhile, the Executive Director for Rural Electrification Funding, Doris Uboh, during her presentation, highlighted the agency’s proactive approach, noting that renewable energy is key to unlocking economic growth and development in Nigeria.
Uboh further stated the organization’s ambitious targets, including the deployment of 1,225 mini-grids to provide reliable and sustainable energy to communities, powering economic activities, and improving living standards.
These mini-grids, she stated, will play a crucial role in achieving the agency’s goals, including impacting 17.5 million lives and powering 236,986 MSMEs across the country through the DARES project.
However, Uboh expressed concern that vandalism and economic sabotage of gas pipelines and electrical infrastructure, such as transformers and transmission towers, could hinder the successful deployment of the planned mini-grids.
“We face challenges like vandalism, security issues, and logistical barriers. To move forward, we believe every state should work to make their area more secure and viable,” she urged.
In response, the Deputy Governor said, “We have 60 District Administrators and Community Development Committees that are very active. If we engage them, they know everybody in the communities. If you engage the right people there, believe me, you will go to sleep without worry. Let’s engage them. They can protect the communities.”
He further reaffirmed the state’s commitment to support the REA project, promising to collaborate and provide necessary assistance to ensure its success.
