Lagos State and LCFE Join Forces to Unlock Energy Investments
The Lagos State Government, in collaboration with the Lagos Commodities and Futures Exchange (LCFE), has taken a significant step toward expanding investment opportunities in the state’s electricity sector.
As part of the implementation of the Lagos State Electricity Law 2024, which grants the state the authority to generate and distribute its electricity, the state government and LCFE organized a strategic stakeholders’ breakfast meeting over the weekend. Themed “Building a Competitive Electricity Market: Strategies to Attract Investment and Boost Confidence in the Lagos Electricity Market Using the Capital Market”, the meeting served as a platform to galvanize investor interest and accelerate energy sector transformation.
Representing Governor Babajide Sanwo-Olu, Deputy Governor Dr. Obafemi Hamzat reiterated the state government’s unwavering commitment to fostering an investor-friendly environment, emphasizing the critical role of private-sector participation in achieving sustainable economic growth and energy security.
Governor Sanwo-Olu encouraged Lagosians and investors to explore the opportunities presented by the new electricity law, noting that an efficient energy sector will reduce dependence on generators and environmental pollution while driving industrial growth.
“Investors stand to benefit significantly from this initiative. The new framework ensures a structured, market-driven electricity system that will enhance efficiency and profitability,” the Governor stated.
Managing Director of LCFE, Akin Akeredolu-Ale, expressed optimism about the endless possibilities for investment in Lagos’ electricity market, highlighting that the power sector is estimated to be worth $15 billion by 2025, with projections of 4.28% annual growth between 2025 and 2030.
As part of the initiative, LCFE formally launched the Electricity Receipt Quotation (LERQ) Board, introducing tradeable financial instruments such as power generation contracts, infrastructure contracts, electricity commercial papers, and renewable energy contracts, among others.
Chairman of LCFE, Chief Onyenwechukwu Ezeagu, lauded the Lagos State Government for pioneering energy reforms, describing the new Energy Bill as a catalyst for a competitive and investor-friendly electricity marketplace.
Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, commended LCFE’s innovative approach to commodities trading, assuring stakeholders of SEC’s full support for the initiative.
With the state’s electricity market rapidly evolving, Lagos is positioning itself as a hub for energy investments, ensuring a sustainable, efficient, and investor-driven power sector.
