The Lagos State Government plans to build a 3,000 MW power plant. The move is a positive one as Lagos State is the major industrial hub of the country, and also one of the states with the most population in Nigeria, estimated at over 15 million people.
One of the biggest challenges for industries in the country today is electric power supply. It is typically epileptic, forcing companies to rely on diesel plants for their production. When available, electricity is mostly erratic, leading to damaging of costly equipment. This results in extra cost of maintenance, while exposing industries to fluctuating prices of diesel products. With current power generation capacity at around 5,000 MW, the new power plant will enable the state reduce its reliance on the National Grid.
Improved power in Lagos State would lead to reduced cost of operations for industries. Stable power supply would attract more industries and individuals to the state. This ultimately translates to more revenue for the state.
The Lagos state government would need to go beyond generating its own power to having its own transmission system as well; as there is a limited amount of electricity the national grid can transmit. Exceeding the limit will lead to its collapse. NASCO, a private company, currently generates and supplies electricity to Jos and its environs.
Finally, there must also be a long term plan by the Lagos State Government to divest a majority stake in the proposed plant to the private sector. History enlightens us that government is not the best manager of businesses, especially in the power sector. The Federal Government has been unable run its power plants efficiently for years and Lagos State may not be different.