The Deputy Governor of Lagos State, Obafemi Hamzat, has raised the alarm over what he described as “crazy billing” by electricity distribution companies, revealing that his official residence was slammed with a staggering N29 million electricity bill for April — up from N2.7 million in March.
Speaking at a roundtable between the Lagos State Government and the Rural Electrification Agency (REA) held in Victoria Island on Monday, Mr Hamzat said the electricity provider, Eko Electricity Distribution Company (EKEDC), had also frustrated his efforts to install a prepaid meter despite payment.
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“I am a very good example,” he said. “Last month, the bill for the official residence was N2.7 million. This month, Eko DisCo sent a bill of N29 million. I sent it to the Commissioner for Energy. It’s crazy. I actually procured a meter to avoid estimated billing, but converting it has been an ordeal.”
Mr Hamzat, who represented Governor Babajide Sanwo-Olu at the event, said the issue of arbitrary electricity charges was affecting not just high-profile officials but also everyday Lagosians.
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He cited the case of a resident in Coker Aguda, Surulere, who was issued a bill of N2.8 million — more than his annual rent of N2 million.
“Our people are suffering because of estimated billing,” Mr Hamzat said.
The event marked the signing of a Memorandum of Understanding (MoU) between Lagos State and the REA to “solarise” rural communities across the state.
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, hailed the partnership as a major step towards stable electricity for underserved communities.
“Opportunities are opening up for those who never thought they would experience constant and stable electricity,” Mr Ogunleye said.
Managing Director of REA, Abba Aliyu, said the agency had identified several communities to benefit from the rural electrification programme, including a proposal to build an 8-megawatt floating solar power plant at the University of Lagos — pending the state government’s approval.
Sanwo-Olu vows to end estimated billing
Just days earlier, at the Lagos Commodities and Futures Exchange meeting held at the Muson Centre, Onikan, Governor Sanwo-Olu (also represented by Mr Hamzat) reaffirmed his administration’s commitment to ending estimated billing and overhauling the energy sector.
“We will introduce new meters to eliminate estimated billing and provide accurate electricity charges,” he said, stressing that decentralising power generation was a key pillar of the state’s new energy law.
He said Lagos aimed to become a model for electricity market transformation in Africa, with plans to leverage capital market instruments such as energy bonds and power purchase agreements to attract investment.
“The goal is to ensure that every resident has access to reliable power, reducing dependence on generators and making the environment cleaner. It’s a win-win for all,” he added.
Mr Ogunleye also unveiled the Clean Lagos Electricity Market initiative, designed to eradicate blackouts and increase power capacity by constructing five new energy hubs across the state.
Legal battles and protests over ‘crazy bills’
The lamentation by the deputy governor highlights the unsparing nature of the burden of arbitrary electricity billing through the estimated billing on consumers across the country.
Electricity consumers across Lagos have intensified resistance to estimated billing. In Isolo, Mafoluku, and Oshodi, residents sued the Ikeja Electricity Distribution Company (IKEDC) over alleged inflated billing and prolonged blackouts.
In the suit filed at the Federal High Court, Ikoyi, residents are seeking an injunction to stop IKEDC from disconnecting them without court approval.
One of the plaintiffs, Lawal Ekundayo, told journalists that consumers were being billed without commensurate power supply.
“In some cases, bills of N1.5 million were issued in a single month, even though there was no electricity for days,” he said.
Another resident, Ahmed Olayiwola, said the suit was filed to compel IKEDC to prove its claims in court, not on the streets.
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“This is the second time we’re suing them. Last year, they offered free meters to settle, only to resume their old practices afterwards.”
Similarly, in Ajegunle, residents under the Ajegunle Peoples Movement petitioned EKEDC’s management over what they described as “multiple and unjustified billing practices.”
According to the petition, consumers were issued two separate bills — one ranging from N40,000 to N150,000 per compound and another flat-rate bill of N7,808 allegedly imposed to recover penalties from the Nigerian Electricity Regulatory Commission (NERC).
“This is extortion,” the petition read. “Most of our residents are on Band B or C with minimal electricity usage — just bulbs and fans. Yet we are billed like we live in industrial estates.”
The group warned that such practices, lacking legal backing, were not only unlawful but deepening distrust in the power sector.
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