Dike Onwuamaeze
The President of Lagos Chamber of Commerce and Industry (LCCI), Mr. Leye Kupoluyi, has called for the development of constant electricity supply hubs in industrial clusters, commercial centres, markets and technology parks across the country.
Kupoluyi made this call during the LCCI’s power sector group’s conference with the theme “Gas to Power: Unlocking Nigeria’s Energy Potential for Sustainable Economic Growth.”
He said: “I advocate the development of 24/7 electricity supply hubs in industrial clusters, commercial centers, markets and technology parks.
“Through partnerships between government and private investors, these hubs can combine gas-fired generation, renewable energy, battery storage and dedicated distribution infrastructure to provide more reliable electricity.
“Such arrangements can reduce businesses’ dependence on individual generators, lower operating costs and improve productivity.”
According to him, Nigeria possessed substantial gas resources that could be deployed to strengthen electricity generation and support industrial development.
He stated that gas-fired power plants could provide “dispatchable” electricity and complement renewable energy sources, helping to meet the needs of businesses that require dependable power.
Kupoluyi, however, emphasised that “gas-fired generation alone will not resolve all our electricity challenges,” stressing that “it must be accompanied by improvements in transmission, distribution, metering, market liquidity, and operational efficiency.
“The ultimate goal is to translate our natural resources into dependable electricity, competitive businesses and sustainable economic growth.”
The LCCI’s president stated that currently businesses, particularly manufacturers and small and medium-sized enterprises, were documenting the burden of frequent power outages in their financials as high energy costs, increased production costs, reduced capacity utilisation and weakened profit margins.
He said: “Electricity is the lifeblood of modern economic activity. Unfortunately, unreliable electricity supply remains a major constraint to business competitiveness and economic growth in Nigeria.
“Businesses, particularly manufacturers and small and medium-sized enterprises, continue to bear the burden of frequent power outages, high energy costs, and dependence on petrol- and diesel-powered generators.
“These challenges increase production costs, disrupt operations, reduce capacity utilization, weaken profit margins and undermine the competitiveness of Nigerian products in domestic and international markets.
“They also discourage investment, constrain job creation and contribute to higher consumer prices.”
He added: “For a country seeking accelerated industrialisation, economic diversification and inclusive growth towards a $1 trillion economy, this situation is unsustainable.
“Nigeria must move decisively towards a power sector that supports productivity, attracts investment and enables businesses to thrive.”
The president of LCCI said that Nigeria must explore how it can harness its abundant natural gas resources to deliver reliable, affordable, and sustainable electricity to businesses and households.
“Our objective must go beyond generating electricity to ensuring that dependable power reaches businesses and households at affordable and commercially sustainable prices.
“To achieve this, we need best-practice regulation that promotes competition, transparency, investor confidence and accountability. Regulatory institutions must provide predictable rules, enforce service standards, protect consumers and ensure that electricity market participants fulfill their obligations.
“Tariff frameworks must support the sector’s financial sustainability while addressing affordability and the need for efficient service delivery,” he said.
In his keynote address at the conference, the Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, said that Nigeria did not lack energy resources but must address the infrastructure, commercial structures and institutional frameworks required to convert those resources into reliable electricity for industries, businesses and households.
Ogunleye said that gas remained fundamental to achieving improved electricity supply, particularly for Lagos, Nigeria’s largest commercial and industrial hub.
He said that Lagos was receiving approximately 1,000 megawatts from the national grid against its electricity requirement of over 6,000 megawatts.
“This enormous supply gap has encouraged widespread dependence on expensive self-generation, increasing production costs, weakening competitiveness and placing considerable financial pressure on households and businesses.
“However, our ambition is to deliver approximately 6,000 megawatts of electricity capacity, comprising 4,000 megawatts of gas-fired generation and 2,000 megawatts from renewable energy sources.”