It’s a bold move that definitely affects anyone who’s ever dealt with the “estimated billing” headache. This policy isn’t just a catchy slogan; it represents a significant shift in how the Lagos State Government (LASG) manages its own energy footprint and sets a precedent for the wider market.
​The policy was officially introduced by Governor Babajide Sanwo-Olu alongside the signing of three new Power Purchase Agreements (PPAs). The goal is to ensure accountability.
Under this model, the state government will only pay for electricity that is actually delivered and metered. If the lights go out at a public facility, the state stops paying for that duration.
Right now, the policy specifically targets public infrastructure clusters. The state has assigned specific providers to manage Fenchurch Power which Supplies major water facilities in Adiyan and Iju. Mainland Power Serving Ikeja, Oshodi, and Anthony and Viathan, Powering key facilities on Lagos Island.
It is essential because it eliminates waste and stops the bleeding of public funds on “estimated bills” or fixed charges for power that never arrived. By also tying payment to performance, providers are financially incentivized to maintain high uptime.
As Lagos takes over regulatory oversight of its own electricity market (via the Lagos State Electricity Regulatory Commission – LASERC), this sets the standard for how private residents and businesses should eventually be treated.
While this specific government policy currently applies to state-run facilities, it aligns with a broader push for consumer protection across Nigeria.
There is ongoing pressure on DisCos (like Ikeja Electric and Eko Electric) to stop estimated billing for residential customers.
Federal regulations already state that if a customer is not metered, they shouldn’t be subjected to arbitrary billing beyond certain capped limits.
Lagos is essentially “leading by example.” By refusing to pay for ghost megawatts, they are forcing power providers to move away from the old, inefficient model and toward a metered, performance-based system. It’s a win for transparency, though the real test will be seeing how quickly this culture trickles down to the average Lagosian’s monthly bill.
