The Lagos State Government, in collaboration with Lagos Commodities and Futures Exchange (LCFE), have unveiled vast investment opportunities in electricity in the State at the weekend.
Following the enactment of Lagos State Electricity Law 2024, which empowers the state government to generate its electricity, key stakeholders highlighted potentials for investment in electricity through various financial instruments, including equity, fixed income securities and derivatives .
Addressing the participants at the Breakfast Meeting organised by Lagos Commodities and Futures Exchange (LCFE) in collaboration with Lagos State Government, the Lagos State Governor, Babajide Sanwo-Olu, reiterated the commitment of Lagos State to creating an enabling environment for investors, with a focus on promoting sustainable development and economic growth.
Sanwo-Olu, who was represented by his Deputy, Dr Obafemi Hamzat, urged Lagosians to take advantage of the new Electricity Law for investment.
” In our new arrangement through Lagos State Ministry of Energy and Mineral Resources and Lagos Commodities and Futures Exchange (LCFE), there are lots of investment opportunities. Investors will make more money. It means people can purchase power. It is going to the market . That is what it is done in the Western World. Lagosians should participate. They should educate themselves about the new initiatives online.”
The LCFE’s Managing Director and Chief Executive Officer, Akin Akeredolu-Ale, expressed optimism that collaboration of The Exchange with the Lagos State Government would provide limitless opportunities for investment in electricity.
According to him, the Lagos Power Market size is estimated at about $15bn in 2025, and is projected to grow at 4.28 per cent during the forecast period (2025-2030).
” There are many investment opportunities in hydrocarbons in the global space . We shall develop commodities contracts to trade electricity, providing a platform for investors to participate in the electricity market.
Our market provides opportunities for price discovery. We are ready to securitize power assets. There are huge opportunities in this area.”, Akeredolu-Ale assured.
Earlier in his welcome address , the LCFE’s Chairman, Chief Onyenwechukwu Ezeagu lauded the Lagos State Government for its continued collaboration with LCFE and explained that the Energy Bill would encourage innovative products tradeable on Commodities Exchanges.
“The Lagos Commodities and Futures Exchange, as a key player in the capital market, recognizes the transformative potential of the Energy Bill. It is not just a policy framework but a call to action for all stakeholders to collaborate, innovate, and channel investments into Lagos State’s burgeoning electricity market. The Bill’s implementation will foster a competitive and investor-friendly electricity marketplace.”, said Ezeagu.
Lagos State, LCFE To Attract Investors Into Power Sector is first published on The Whistler Newspaper
Source: The Whistler
