Lagos invites companies to bid for construction of power plants to meet State electricity demand 

This initiative, announced by the Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP) on Wednesday, seeks to generate up to 500MW of electricity across four designated hubs in the state.

With a population exceeding 20 million, Lagos remains Africa’s largest metropolitan area and Nigeria’s economic powerhouse.

However, the city’s energy demands far surpass the supply from the national grid. The government revealed that while Lagos requires over 6,000 MW of electricity, the existing DisCos supply less than 2,000 MW at peak periods.

“The state faces pressing energy challenges due to rapid urbanization and growth in economic activities. “There is an urgent need for sustainable alternatives to the supply of energy from the national grid, which is inadequate for the entire country,” the statement read in part.

As part of its Clean Lagos Electricity Market (CLEM) initiative, the government is offering four hubs where the proposed gas-fired plants will be located.

“This initiative is designed to close the gap between Lagos’ energy demand and supply, enabling the state to power its industrial, commercial, and residential needs more effectively,” the statement added.

The Lagos State Government is positioning the project as a critical step toward achieving energy security and reducing reliance on the 6 grid.

“The minimum intended generation capacity of electricity for each of the four hubs shall be 500MW, which one or more power-generating firms shall generate,” the announcement stated.

“Lagos is creating an enabling environment for private sector investment in the energy sector, and we are confident that this project will attract top-tier companies capable of delivering world-class solutions,” it said.

“Generation of electricity of not less than 100MW for each of the allocated sites for the Clean Lagos State Electricity Market” is a non-negotiable requirement.

The government is welcoming bids from both individual companies and consortia with the technical, financial, and legal expertise needed to deliver the project. In cases of consortium bids, one company must be identified as the lead partner.

“The lead company will have the primary responsibility for ensuring the successful execution of the project,” the statement emphasized.

It further clarified, “Consortium members must jointly submit their application and identify their specialized expertise. This collaboration will ensure we attract the right mix of experience and innovation to deliver this critical infrastructure.” 

Interested parties have been advised to visit www.ppplagos.lagosstate.gov.ng or contact [email protected] for detailed application guidelines.

“Our goal is to establish a reliable energy supply system that meets the needs of our growing population while positioning Lagos as a leader in sustainable energy solutions,” the government concluded.

“Our goal is to establish a reliable energy supply system that meets the needs of our growing population while positioning Lagos as a leader in sustainable energy solutions,” the government concluded.

Lagos State, the most populous in Nigeria, is home to over 20 million residents. It also accounts for the highest electricity consumption in the country, driven by its significant commercial and economic activities.

The planned construction of power plants aims to achieve energy sufficiency in Lagos, reducing its heavy reliance on the limited and unreliable grid system.