The Lagos State Government in Nigeria has launched tender for construction of 4,050 MW of gas-fired power plants.
This move is part of a broader initiative to reduce Lagos’ dependence on the national grid, which currently supplies only about a third of its 6 GW electricity demand. The bid invitation sets a minimum required generation capacity of 500 MW for each of four planned power hubs, with individual companies needing to contribute at least 100 MW. Bids for the projects are open until 22 November 2024.
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Objectives
This initiative aligns with Nigeria’s focus on increasing its power generation, primarily through gas-fired plants, which make up 79% of the country’s current 14.1 GW installed capacity. Ongoing and planned gas-fired projects in Nigeria total about 25 GW, positioning the Lagos tender as a key part of the country’s long-term energy development. These new plants would contribute significantly to Lagos’ infrastructure, bringing much-needed reliability to the energy supply in Nigeria’s largest city.
Electricity in Nigeria is generated through thermal and hydropower sources. The primary source of electricity generation comes from fossil fuels, especially gas, which accounts for 86% of the capacity in Nigeria, with the remainder generated from hydropower sources.
Over 80 million Nigerians do not have access to electricity. In 2022, 60.5% of Nigerians had access to electricity. Even those connected to the grid often experience power outages. The amount of electricity generated, transmitted, and distributed is less than what is needed to meet basic needs.
