Ola Wale
The Lagos State Government has approved 14 electricity operators to run off-grid generation, embedded generation, independent distribution, metering services, and interconnected mini-grid projects across the state. The licences and permits were issued by the Lagos State Electricity Regulatory Commission at its inaugural Stakeholders’ Engagement Forum in Ikeja on May 8, 2026.
This is the first major licensing round since Lagos passed its Electricity Law 2024, which gave the state power to regulate its own electricity market under the 2023 Electricity Act. The goal is to reduce reliance on the national grid by building a decentralized, competitive market driven by private investment and smart regulation.
Among the companies approved are Axxela Limited for a 5.8MW off-grid plant serving Cadbury Nigeria, Daybreak Power Solutions for multiple industrial facilities including Nigerian Breweries and Seven-Up, and Isolo Power Gen Limited for a 9MW embedded project along the Apapa-Oshodi corridor. The projects target commercial and manufacturing hubs where erratic power has long hurt productivity.
LASERC CEO Temitope George said the new operators will add more megawatts to the state’s supply and support the push for 24/7 power. She referenced recent Power Purchase Agreements with three independent power producers aimed at raising Lagos’s generation capacity to around 300MW in the near term. The state is also licensing more generation companies to expand supply.
The reform includes a plan to roll out pilot 24/7 franchise zones by October 2026. These zones will operate as dedicated districts with round-the-clock power, serving as test cases for wider reforms. LASERC also plans to introduce grid interface guidelines by July 2026 and a 100% metering initiative to eliminate estimated billing.
A key part of the rollout is the “Electric Eye of Lagos,” an AI-driven metering system designed to give real-time visibility into electricity distribution and consumption. Zonal consumer complaint offices are also set to open in Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe in Q3 2026 to improve complaint resolution and access to regulatory services.
George described the licensing as a defining moment for Lagos’s electricity sector, saying the state wants a functional, efficient, and consumer-centred market. LASERC’s mandate includes enforcing standards, protecting consumers, attracting investment, encouraging innovation, and promoting clean energy adoption across Lagos.
Lagos accounts for roughly 20% of Nigeria’s electricity demand but remains underserved by the national grid. With these approvals, the state is positioning itself as Nigeria’s first subnational entity to run a fully regulated, independent electricity market, aiming to improve reliability for households and industries while attracting more private capital into the sector.
