Lagos State Governor, Babajide Sanwo-Olu, has said that energy costs remain high for households and businesses despite reforms in Nigeria’s downstream petroleum sector, stressing the need to make energy supply more reliable, competitive and affordable.
Sanwo-Olu made the remarks on Monday in Lagos while speaking at the opening of the OTL Africa Downstream Energy Week. He noted that the removal of fuel subsidies had changed the sector significantly over the past three years by creating opportunities for greater private sector investment.
The governor cited data showing that the Dangote Refinery in Ibeju-Lekki produced about 42 million litres of petrol daily in August, while petrol imports declined by 26 per cent to approximately 14.6 million litres per day during the same period.
He described the figures as evidence of a shift from Nigeria’s previous dependence on imported petrol but maintained that increased domestic production alone would not guarantee success.
According to him, the real test is whether petroleum products are consistently available across the country at prices consumers can afford.
Sanwo-Olu warned that high energy costs affect several areas of the economy, including transportation, manufacturing, food distribution and small businesses. He explained that expensive or unreliable energy increases production costs, pushes up food prices and reduces business profitability.
He said energy security should be treated as a key component of economic security, adding that the benefits of reforms must extend beyond industry operators to commuters, traders and manufacturers.
The governor highlighted three areas where his administration was intervening to improve energy access and reduce costs in Lagos, beginning with public transportation.
He disclosed that the Lagos Blue Line rail service had transported more than six million passengers since its launch in 2023. The Red Line currently operates between Agbado and Oyingbo, while the second phase of the Blue Line, extending to Okokomaiko, is scheduled for the first quarter of 2027.
He also said the proposed Green Line would connect Lekki to Marina, adding that shifting more commuters from road transport to rail would help reduce fuel consumption and ease traffic congestion.
On cleaner transportation, Sanwo-Olu said new buses entering Lagos State’s regulated public transport system since the beginning of the year must operate on compressed natural gas (CNG) or electricity.
He added that the state had converted 152 First and Last Mile buses to CNG, reducing their fuel costs by nearly half. The administration has also introduced 2,000 CNG-powered trucks under its haulage reform programme.
The governor further highlighted the establishment of a regulatory framework for electricity distribution in Lagos through the Lagos State Electricity Law and the Lagos State Electricity Regulatory Commission.
He said the state’s electricity market now operates under licences issued by the commission, with the objective of improving service delivery and attracting private investment. He stressed that reliable electricity was as important to businesses as a dependable supply of fuel.
Sanwo-Olu, however, noted that the government could not achieve these objectives alone, pointing to the role of private investors in developing storage facilities, depots, pipelines, distribution networks and logistics infrastructure.
He urged participants at the energy conference to explore ways of expanding distribution capacity, financing downstream and gas infrastructure, and ensuring that the benefits of local refining translate into stable and affordable prices for consumers.
The governor reaffirmed Lagos State’s commitment to responsible investment and partnerships that support economic development, while commending the OTL Africa team for sustaining the platform for 20 years.
