Babajide Sanwo-Olu, Lagos State Governor has affirmed that a well regulated and transparent electricity market, backed by financial innovation, is key to attracting Foreign Direct Investments (FDI) into Lagos.
The Governor who was represented by Dr. Kadri Obafemi Hamzat his Deputy made this known on Friday while speaking at a breakfast meeting with the theme; ‘Building a Competitive Electricity Marketplace: Strategies to Attract Investments and Boost Confidence in the Lagos Electricity Market Using the Capital Market’ organised by Lagos Commodities and Futures Exchange at the MUSON Center, Onikan.
He said that his administration is committed to ensuring that Lagos becomes a model for electricity market transformation in Africa.
Sanwo-Olu pointed out that the state is implementing policies that encourage private sector participation, improve regulatory oversight, and build investor confidence in the Lagos electricity market.
“In addition, Lagos is prioritizing the transition to renewable energy as part of its long-term sustainability agenda. Leveraging the capital market will allow us to scale up investments in solar, wind, and other clean energy projects. The issuance of green bonds and carbon credit trading will position Lagos as a leader in sustainable energy financing, driving innovation and economic growth in the sector.
Speaking further the Governor said that the capital market plays a vital role in unlocking new investment channels for the electricity sector and that by providing a structured platform, it enables both local and international investors to finance large-scale energy projects through instruments such as energy bonds, power purchase agreements, and electricity derivatives.
“These mechanisms enhance liquidity and build investor confidence, making the electricity sector more attractive for long-term funding. The state government remains committed to creating an enabling environment that encourages investments in power infrastructure and renewable energy solutions.
Dr. Emomotimi Agama, the Director-General, Securities and Exchange Commission (SEC) in his goodwill message said that Nigeria has set ambitious energy targets, including achieving 30,000 megawatts of installed electricity capacity by 2030.
Agama who was represented by Bola Ajomale, the Executive Commissioner, Operations, said that meeting these goals requires a diversified funding strategy, leveraging innovative market instruments such as infrastructure bonds, green bonds, and even energy-focused mutual funds.
One of the biggest challenges in the electricity sector is liquidity. The capital market can offer securitisation options that can improve cash flow for distribution and generation companies, ensuring they have the financial stability to meet obligations and expand operations.
“The adoption of cost-reflective tariffs is essential to ensuring financial sustainability in the power sector. While affordability remains a concern, market-driven pricing models—coupled with targeted consumer subsidies—will help balance investor returns and consumer protection.
He added that SEC is also committed to facilitating the listing of energy companies on the Nigerian Exchange to deepen liquidity, enhance corporate governance, and broaden investment opportunities in the sector.
Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources, said that the state government is committed to ensuring that power capacity goes up drastically in the state as the government is building a total of five energy hubs in the state.
He said that the Clean Lagos Electricity Market (CLEM) aims to eliminate the culture of blackouts across Lagos State by taking systemic steps to execute the state Electricity Bill which would involve; positioning strong market institutions, deploying appropriate tools, perfecting value chain delivery capacity and attracting new investments for a sustainable turnaround of the situation with partners across the energy value chain.
