Powering the Lagos Economy:

Real Opportunities, Endless PossibilitiesReal Opportunities, Endless Possibilities

Ehingbeti 2014

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Presentation Content

1. Introduction1. Summit Objectives2. From the Past Summits

2. What we learnt and discussed3. Our Recommendations/Resolutions

and conclusions4. BRF bids goodbye to Ehingbeti

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Summit Objectives

• This bi-annual Summit serves• As a platform for policy dialogue between the LASG

and the wider stakeholder community

• To generate and implement ideas and innovations which drive growth and development in Lagos State.

• To enable exploration and utilisation of emerging opportunities that position Lagos as Africa’s model Mega city and global economic and financial hub.

• To help in building and strengthening development, social and business networks

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Feedback from previous Summits• Changing nature of the Summit• Since 2008 the summit has moved from being merely diagnostic in nature

to being action-driven and implementation-oriented

• Successful Implementation of Summit Recommendations/Resolutions• The 6 previous Summits yielded 152 Resolutions and

Recommendations/Resolutions• Only 13 of these remain outstanding – all the others have been implemented; • Even with outstanding resolutions, Implementation is on-going.

• Some Examples of Post Summit Actions • Power Sector

• Energy/power audits and provision of IPPs• Agriculture

• Increased cultivations of rice and other staples, enablers of agro-enterprise• Transportation

• Enhancement of transport infrastructure in Rail , water and road • Housing and Urban Renewal

• Affordable housing and accessible mortgage facilities, environmental enhancement

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2014 Summit objective

• Electricity serves a number of purposes in the processes of socio-economic development and growth • Power as an enabler• Power as a handle• Power as a catalyst

• The primacy of power in development makes it understandable and appropriate that this year’s Summit has “Powering the Lagos Economy: Real Opportunities, endless possibilities” as theme• Objectives thus include –• Gain a better understanding of how the government of Lagos

State can facilitate an improvement in the supply of electricity to Lagos

• Dimension the the issues challenges and opportunities in the Lagos Power Sector

Context for this Summit

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Setting the context for this Summit – The Governor’s Address• Notwithstanding this being his last Summit as Governor and he

would have been forgiven for a triumphal backward looking speech, the opening address delivered by HE provided a fitting forward-looking framework.

• His remarks• Re-iterated the primacy of the focus on Power, Agriculture, Transport and

Housing (PATH), in achieving the LASG’s growth and development ambitions • Presented a copious list of actions taken since the Summit in 2012 which

illustrate the commitment of LASG to its vision of Lagos as a Model Mega-city, a hub for activity and the impact which investment in infrastructure renewal was having on improving the opportunity space, raising cost-efficiency and above all enabling residents achieve their ambitions

• With respect to the importance of the Power Sector, shared the impact on various facets of life and living in Lagos of action taken to improve street lighting as a result of the State’s Independent Power Projects.

• Drew attention to the challenge of going beyond the headline data in achieving and sustaining inclusive growth which positively affects the realities of residents;

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Lessons from the experiences of our foreign: Mikheil Saakashvili, Fmr President of Georgia

• Mr Saakashvili drew attention to a number of characteristics and actions which enabled Georgia achieve and sustain a turn-around in its fortunes by – • sheer determination to achieve well defined objectives• You can generate the power that would be enough for Nigeria if you

will put your heart to it with commitment and without personal interest.

• Government should decentralize the process of getting public services/documents in order to achieve more results in the shortest possible time.

• Willingness to take controversial, unusual policy measures and actions• “Genuine reforms come with some form of suffering that the people

will have to bear.”• Strengthening institutional capacities which, as he stated, then

ensures that – • It is to be borne in mind, he noted that We are building

something that when we leave will not look like us, but will remind people of us”

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Lessons from the experiences of our foreign: Mr. Pedro Pires, Fmr President of Cape Verde

• Mr. Pedro Pires reminded us that – • Leaders must develop transformation agendas and action

plans for implementation; • Leaders should stop managing poverty and instead

channel those energies into managing development because development management cannot be equated with poverty management

• Leaders need to spearhead projects of transformation agendas and vigorously seek to realize those agendas

Our Recommendations/Resolutions

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1. Lagos State should focus keenly on aspects of the Power value chain within its jurisdiction – for example, Local Distribution Networks (Transformers etc)2. Partner with the DISCOs to promote embedded generation which includes emergency power and regular power. Embedded power generation is a “ring fence” approach to achieving power production quickly. 3.LASG should, through its partnership with the DISCOs seek to reduce losses and any other measures necessary to ensure effective and efficiency distribution of available power.4.LASG should facilitate the operations of the DISCOs by - •Ensuring that things like land, right of way, permits, etc. are made easily accessible to the DISCOs5.Sharing its Development Plans with the DISCOs in advance to influence planning by the DISCOs6.LASG, as a local regulator of sorts, without interfering with the mandate of NERC, should serve as an Arbiter between the DISCOs and the Consumers in Lagos State.

Recommendations/Resolutions A. How Can Electricity Delivery To Lagos Be Accelerated?

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Recommendations/Resolutions .......How Can Electricity Delivery To Lagos Be Accelerated?7. LASG should, through its partnership with the DISCOs seek to reduce

losses and any other measures necessary to ensure effective and efficiency distribution of available power.

8. LASG, as a local regulator of sorts, without interfering with the mandate of NERC, should serve as an Arbiter between the DISCOs and the Consumers in Lagos State. LASG should Continue to engage with the Federal Government/NERC towards speeding up completion of connectivity infrastructure, liberalization of the gas market to bring prices to export parity, which will ensure sufficient liquidity in the gas sector to support all solutions, as well as movement towards more cost reflective tariffs to engender investment required in the power sector.

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Recommendations/ResolutionsB. How Do We Deliver Adequate Gas To Power Lagos?1.LASG should seek to obtain direct equity stakes in gas acreages in

offshore Lagos to gain more control of the gas molecules for redirection into the Lagos market

2.LASG can provide a framework that guarantees gas uptake from gas fields in offshore Lagos in order to make those investments bankable and expedite their progress (examples include Agi Fields – can deliver 450mmcf/d in 2-3 years; Camac field etc.)

2. LASG should join the advocacy for alternative technologies for Gas delivery into Lagos. Examples include -

Use of FSRU (Floating Storage & Regasification Units) to re-gassify LNG for use by domestic power plants

Investments in Mini-LNG plants

Use of CNG and synthetic fuels to meet domestic gas demand and gas plants mounted on barges along the coast of Lagos. -

LESG SecretariatRecommendations/Resolutions .......Managing Transition Issues From Public To Private Sector Controlled Power Industry5.LASG should communicate to NERC and other relevant Agencies the need to ensure that the transition from Public to Private Sector controlled industry is well managed by addressing issues such as - •The need for Firm but fair Regulation including disciplinary measures such as • License revocation where applicable should remain on the

menuCo-ownership (with labour) of privatized assets would be a beneficial incentive to labour and would boost beneficial cooperation

• Worker retraining and acculturation to new standards should be facilitated by employers. Worker retraining is a critical element of the change management process

6. LASG should actively engage in the political lobby for the speedy completion of key projects such as the Escravos-Lagos Pipeline System (ELPS)2.

LESG SecretariatRecommendations/Resolutions

E. Harnessing Electricity To Grow The Agriculture, Transportation & Housing Sectors1. LASG should take advantage of liberalized power industry

to promote growth in the Agric Transport and Housing Sectors by doing the following –

2. Agriculture• Further collaboration with players along the value chain and assistance to

farmers in acquiring relevant skills• Implementation of a local food content bill to encourage hotels and retail

stores to patronize locally produced food items. • Development of captive power projects for the agricultural farm

settlements and estates.• Institutionalize the current efforts of government at powering agricultural

areas.• Grant electricity subsidy to encourage agricultural entrepreneurs

3. Transportation• Electrifying the transport system will reduce dependence on petroleum

products, reduce some of these noted effects , enable the use of Intelligent Transport System (ITS) and provide more employment for youths.

LESG SecretariatRecommendations/Resolutions Harnessing Electricity To Grow The Agriculture, Transportation & Housing Sectors• Housing

4. High/ medium rise buildings should be used for high density areas to encourage efficient utilization of resources.

• Buildings should be designed for proper circulation and lighting to reduce energy requirement.

• Sustainable industry building processes such as pre-fabrication and assembly should be employed in building projects especially when energy becomes available.

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Recommendations/Resolutions:How do we harness Electricity to Transform Social Infrastructure1. LASG should explore and where found suitable

collaborate with private sector partners creation of “smart cities.”

• This involves collation, combination, aggregation, analysis and interpretation of relevant demographic information.

• The “smart city” concept will provide us with adequate data on electricity usage pattern. This in turn can be used to determine peak and off-peak periods.

2. Advocate and encourage ongoing grid upgrade and aggressive upgrade of distribution facilities. Invest in distribution equipment.

3. Pursue Waste to power and Gas to power projects as practical ways by which we can harness electricity for transformation of social infrastructure.

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Ehingbeti Heritage -

Ehingbeti’s pre-eminence as a rallying point of maritime, economic, financial and commercial activities dates back to

15th century Eko market place which also provided a forum to foster close collaboration between (the king and the merchant

class), our current day public and private sectors, in the planning and actualizing the developmental objectives of

Lagos as a global Mega City.

We intend to keep faith with this heritage.

B’oju o ba ti Ehingbeti, Oju o le ti Eko