Residents of Lagos State are set to pay the full cost of electricity as the state government moves away from subsidising power under its new electricity market structure.

The policy was reaffirmed by the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, who said the government’s position is aligned with the directive of Governor Babajide Sanwo-Olu. He explained that the state is transitioning to a system where electricity pricing reflects actual production and distribution costs.

According to him, the goal is to build a transparent and self-sustaining electricity market where all participants in the power supply chain are fairly compensated. He added that the state is also working with federal authorities to review pricing structures, especially around gas-to-power supply.

As part of the reform, Lagos is encouraging investors to focus on smaller and more flexible power projects that can be developed in phases rather than large-scale plants. Officials believe this approach will help improve reliability and expand electricity access faster.

The government also indicated that some current distribution operators may need to hand over certain underserved communities to new service providers to improve electricity delivery across the state.

The Chief Executive Officer of the Lagos State Electricity Regulatory Commission, Temitope George, said the regulator is prioritising fair pricing, improved service delivery, and long-term sustainability in the sector.

She added that Lagos is targeting 24-hour electricity supply alongside full metering coverage. The commission is also strengthening consumer protection by setting up zonal offices in key areas including Ikorodu, Badagry axis, and Epe corridor to handle complaints more efficiently.

The new electricity framework is expected to open the market to more private investment while reshaping how power is generated and distributed across the state.