Transfer of regulatory oversight to LASERC will not improve electricity in Lagos, says expert

Transfer of regulatory oversight to LASERC will not improve electricity in Lagos, says expert

CHIGOZIE AMADI

Mr Chinedu Bosah, a renowned power expert, has expressed skepticism about the proposed transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity Regulatory Commission (LASERC).

Boash said that it will not result in a significant improvement in the state of electricity in Lagos.

Bosah, who is also the National Coordinator of the Coalition for Affordable and Regular Electricity (CARE), raised an in an interview with the  Business intelligence (TBI Africa) on Wednesday in Lagos.

He emphasised that the Lagos State Electricity Law of 2024 fails to address the core inefficiencies in electricity generation, transmission, and distribution in the state.

He argued that without a fundamental overhaul of these sectors, the transfer of regulatory responsibilities will only result in a shift in authority without any meaningful policy changes.

“The real challenge facing Lagos, other states, and the federal government is how to achieve affordable and reliable electricity for all Nigerians,” Bosah said.

He pointed out that the country’s electricity crisis stems primarily from inadequate investment, and any initiative lacking a comprehensive plan for boosting power generation, transmission, and distribution would be little more than a symbolic change of leadership.

“For example, while Nigeria boasts an installed capacity of about 14,000MW, the country is currently generating only around 5,000MW.

Bosah attributed this shortfall to the high cost of gas and a lack of essential infrastructure for both gas supply and electricity transmission and distribution.

He further noted that the rising electricity tariffs, which many Nigerians cannot afford, add another layer of complexity to the issue.

“Without properly utilizing the existing installed capacity, it’s unlikely that Nigeria will surpass the 14,000MW mark, yet the country requires a minimum of 33,000MW to meet the energy needs of all citizens.

Bosah also questioned the feasibility of relying on private investments to resolve the country’s power issues, citing the failure of the privatization process over the past 11 years.

Despite numerous government interventions and bailouts, he pointed out that the sector has seen little to no real improvement.

“Electricity is a capital-intensive sector, Bosah continued, “and the idea that private investment alone can solve the problem is a misconception that has been proven wrong by the experiences of the last decade.

He further criticised the current electricity tariff policy, which he described as favoring the wealthy and middle class, and argued that such policies are more about maximizing profit than addressing the broader energy needs of Nigerians.

“There is no substitute for substantial investment in the power sector.

“Every developed nation today achieved industrialisation by first investing heavily in basic infrastructure,” Bosah stressed.

The expert said that Nigeria’s ruling elite cannot achieve meaningful industrialization through regulation alone.

To make real progress, he said, both state governments, including Lagos, and the federal government must reconsider the privatization of the electricity sector and focus on significant public investments in power generation, transmission, and distribution.

For any meaningful improvement to be realised, Bosah urged, sustained public investment is crucial for achieving energy self-sufficiency and spurring economic growth