The Lagos State Government has reiterated its commitment to collaborate with the federal government (FG) in a bid to revitalise the country’s steel industry.
Governor Babajide Sanwo-Olu made this known yesterday through his deputy, Obafemi Hamzat, during a courtesy visit by the Minister of Steel Development, Shuaibu Abubakar Audu, at his official residence in Osborne Road, Ikoyi.
Sanwo-Olu, acknowledging the significant impact of poor power supply on the industry, pledged Lagos State’s full support to the Ministry of Steel Development in its efforts to boost productivity and industrial growth.
He noted that steel companies are heavy power consumers and require consistent and reliable electricity to operate effectively.
“Lagos is grateful to Mr President for signing the Fifth Amendment Bill No. 33 on the Devolution of Powers, which now allows states to generate, transmit, and distribute electricity within areas covered by the national grid,” the governor said.
“This kind of decentralised power structure is essential for sustainable industrial development.”
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The governor also highlighted initiatives by his administration to improve the power sector, including the creation of the Lagos State Electricity Regulation Commission, the establishment of independent market operators, and a rural electrification fund.
He revealed that the state has issued a Request for Proposal (RFP) for the construction of five power plants across Lagos, which will feed into dedicated grids tailored to industrial zones.
“In another year, when the plants are up and running, we’ll begin building embedded power grids to directly serve these industries. This aligns with President Tinubu’s new power sector agenda,” he added.
Earlier, Audu, expressed appreciation for the Lagos State Government’s commitment to creating an enabling environment for private sector growth.
He revealed that over 60 per cent of Nigeria’s private steel companies operate within the Lagos, Ikorodu, Ogun, Sagamu, and Abeokuta axis.
“We’re here to understand the challenges facing these companies, explore opportunities, and determine how the Ministry can introduce fiscal incentives to help them scale their operations,” the Minister said.
He noted that resolving the sector’s challenges would support President Bola Tinubu’s broader goal of building a $1 trillion economy.
Audu also commended Governor Sanwo-Olu for his administration’s continued support and drive towards industrial development.
