Consumers of electricity provided by the Lagos State Government will now pay full cost-reflective tariffs. They will now pay the real cost of generating, transmitting, and distributing power. This means there will be no government top-up to make it cheaper.
Biodun Ogunleye, the Commissioner for Energy and Mineral Resources, dropped this at the maiden stakeholders’ forum of the Lagos State Electricity Regulatory Commission (LASERC). He stressed that Governor Babajide Sanwo-Olu’s directive is firm: everybody in the power value chain must be paid fully. No subsidy, unless the Governor changes his mind.
This comes as Lagos takes full control of its electricity market following the Lagos State Electricity Law 2024. The state now regulates its own power sector instead of relying solely on the federal NERC. 
SEE ALSO: Lagos Residents Can Now Report Security Threats Via Videos, Pictures & Messages
Why Is This Happening?
Nigeria’s electricity subsidies have been expensive and unsustainable for years — often running into hundreds of billions of naira. They mostly benefited bigger consumers while the whole sector suffered from poor liquidity, underinvestment, and unreliable supply. Lagos wants a commercially viable market that attracts real private investment instead of depending on government bailouts.
The state is already issuing new licences (14 new ones recently), pushing for embedded power, and planning dedicated franchise zones.
What This Means for You as a Lagosian or Business Owner
- Higher tariffs ahead: Expect your electricity bills to rise to cover actual costs, including gas supply. No more cheap (but unreliable) light.
- Better supply potential: The goal is to attract serious investors for more generation and distribution. Lagos aims for pilots of 24/7 electricity franchise zones by October 2026 in selected areas with good payment culture and infrastructure.
- Full metering push: Say goodbye (hopefully) to crazy estimated bills. LASERC is targeting 100% smart metering for transparency.
- Winners and losers: Businesses that rely on stable power (factories, cold rooms, offices, tech hubs) stand to gain big if supply improves. Households will feel the pinch first, especially small businesses and low-income families running on generators already.
This is similar to the fuel subsidy removal — short-term pain for potential long-term gain. Many of us are tired of paying for darkness and fuel.
What Should You Do Now as a Consumer?
- Budget for higher bills — Start planning your energy costs.
- Get metered if you’re not already — it protects you from estimates.
- Improve energy efficiency — LED bulbs, solar backups where possible, and fix wasteful habits.
- Stay informed — Follow LASERC and Lagos State channels for updates on tariffs and franchise zones.
- Hold them accountable — Demand transparency and results. No exact date has been announced yet for when your electricity bills will switch to the new higher prices.The no-subsidy policy is already active in principle, but LASERC hasn’t released the official new tariff with a start date.
About The Author
Keep Up to Date with the Most Important News
