The Lagos State government has approved 14 licences to private operators for off-grid generation, embedded power, independent distribution, metering, and mini-grid services as part of efforts to reshape the electricity landscape in the commercial capital.
The approvals were issued by the Lagos State Electricity Regulatory Commission (LASERC) at its maiden stakeholder engagement in Lagos, signalling the formal activation of the state’s decentralised electricity market.
At the centre of the new framework is a clear shift away from dependence on the national grid towards a structured, state-driven electricity system built on private investment and localised power supply.
Late last month, Business Post reported that the state signed Power Purchase Agreements (PPA) with three firms- Fenchurch Power, Mainland Power, and Viathan for about 60MW of generation, to increase capacity to serve major public facilities in the state.
Under the new licences, Axxela Limited will develop a 5.8MW off-grid power project at Cadbury Nigeria’s facility in Agidingbi. Daybreak Power Solutions Limited secured multiple off-grid generation approvals across major industrial sites, including Seven-Up, Nigerian Breweries, NBC, Crown Flour Mill, Nigerdock, and Promasidor.
Isolo Power Gen Limited also received approval for a 9MW embedded generation project along the Apapa–Oshodi corridor, one of Lagos’ busiest industrial zones.
In addition, Isolo Power Supply Limited was licensed as an Independent Electricity Distribution Network operator. New Hampshire Capital, GossLink Engineering, and Enaro Energy Mini-Grid Limited were approved for metering services and mini-grid operations.
LASERC said the licences are designed to deepen private sector participation and improve electricity reliability across industrial clusters, estates and peri-urban communities where supply remains unstable.
According to the commission, Lagos is building a decentralised electricity model that allows generation and distribution to operate closer to end users rather than relying solely on the national grid.
It noted that the move is to improve access, reduce losses and attract long-term investment into power infrastructure.
The state has set an ambitious target of achieving 97.5 per cent electricity availability by 2030, alongside reducing market losses to below 10 per cent through a performance-driven structure.
As part of the rollout plan, LASERC will introduce two to three 24-hour electricity franchise zones by October 2026. These zones are expected to serve as pilot districts for uninterrupted power supply under private management.
The commission is also preparing a full metering push, targeting 100 per cent coverage by July 2026. Consumer complaint centres will begin operations in phases from August 2026, starting with Amuwo Odofin, followed by Ikorodu and Epe.
One of the most notable reforms is the introduction of the “Electric Eye of Lagos” (EEL) programme, an AI-enabled metering and monitoring system designed to track consumption, reduce estimated billing and improve revenue collection. The pilot phase is expected to begin in October 2026.
LASERC also confirmed that draft market rules will be released in October 2026, finalised by December 2026, and supported with regulatory sandbox guidelines to encourage innovation in the electricity sector.
The reforms are built on the Lagos Electricity Law signed in 2024, which formally created the state’s independent electricity market and empowered LASERC to regulate generation, distribution and tariffs within the state.
That law replaced the earlier 2018 power sector reform framework and marked a structural shift in how electricity is governed in Nigeria’s commercial capital.
In March 2026, the Lagos State Government inaugurated the LASERC board, giving full operational backing to the regulatory framework.