The Lagos State Government has announced an ambitious plan to bridge the 8,500MW electricity shortfall currently stifling its industrial growth. With the state’s power demand soaring to 12,000MW, the current supply of just 3,500MW has become a significant bottleneck to economic and industrial development.
Speaking at the validation event for the Lagos State Industrial Policy (2025–2030), the State Commissioner for Commerce, Cooperative, Trade, and Investment, Mrs. Folashade Ambrose, emphasized the importance of this initiative in positioning Lagos as an industrial powerhouse. She highlighted that the new policy aims to create a robust framework for sustainable industrialization, tapping into the state’s vibrant economic potential.
Lagos is home to a thriving startup ecosystem valued at over $9 billion, having produced some of Africa’s most successful unicorns. The government plans to harness this entrepreneurial energy to fuel industrial growth, using innovative energy solutions to support both emerging businesses and established industries. The validation of the industrial policy marks a significant milestone in Lagos’ journey toward becoming a global hub for commerce and industry.
To meet its ambitious energy targets, Lagos is exploring diverse strategies, including the development of new power generation hubs. Under the Clean Lagos Electricity Market (CLEM) project, the state plans to establish four power generation hubs, each with a minimum capacity of 500MW. These hubs will leverage clean and renewable energy sources, aligning with Lagos’ commitment to sustainable development and reducing its carbon footprint.
The CLEM project is designed not only to boost power generation but also to enhance the efficiency of electricity distribution and management. This initiative will ensure that industries across Lagos have reliable access to the power needed to operate efficiently and competitively. In addition to boosting industrial output, the project is expected to create numerous job opportunities, stimulate local economies, and attract foreign investments.
Mrs. Ambrose reiterated that achieving the 8,500MW target will require strong partnerships between the public and private sectors. The government is actively engaging with energy stakeholders, investors, and technology experts to develop innovative financing models and technical solutions. This collaborative approach aims to overcome the traditional challenges of infrastructure development, such as funding gaps and regulatory hurdles.
Moreover, the Lagos State Industrial Policy outlines a comprehensive plan to support industries through policy reforms, capacity building, and infrastructure development. The government is committed to creating an enabling environment that fosters industrial innovation, enhances productivity, and promotes economic diversification.
As Lagos moves forward with these transformative initiatives, it is poised to solidify its status as a leading industrial hub in Africa. The strategic focus on energy sufficiency, coupled with targeted industrial policies, will drive sustainable economic growth, attract global investments, and improve the quality of life for millions of Lagosians. Through these bold steps, Lagos is not just aiming to power its industries but to ignite a new era of prosperity and development for the state and beyond.
