Lagos to review private investment in electricity market in November

Lagos State Government is set to review private investment opportunities and private-sector participation in its electricity market in November as it assesses developments under the state’s 2024 electricity law.

The government disclosed this in a statement seen by Nairametrics and issued by the Ministry of Energy and Mineral Resources ahead of the second Lagos Energy Summit, scheduled for November 10 and 11, 2026, in Victoria Island, Lagos.

The discussions will come as several private power projects move through licensing, construction and development stages across Lagos, while other prospective projects remain under regulatory review.

Lagos Electricity Summit targets investment

The 2026 Lagos Energy Summit will focus on the implementation of the Lagos State Electricity Law, 2024, particularly its implications for private-sector participation and investment across the electricity value chain. The summit was initially scheduled for September but was moved to November to allow for further preparations.

The state said discussions will examine the evolving regulatory framework and how it can support a reliable and sustainable electricity market, with renewable energy, electricity infrastructure and decentralised generation expected to feature.

• Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said, “The Summit will not only review the progress recorded since the enactment of the Lagos State Electricity Law, but will also catalyse strategic partnerships and investments that will deliver measurable outcomes across the generation, transmission and distribution value chain.”

The summit will therefore review progress since the electricity law was enacted while identifying areas for strategic investment and partnerships across generation, transmission and distribution. The discussions come as private operators continue to develop projects and enter supply arrangements across Lagos.

Private power projects gain momentum

The investment discussion comes as several private operators are already developing power projects and entering supply arrangements across Lagos. One of the latest is Fenchurch Power Limited’s 26MW rebuild of the Akute Independent Power Plant, being delivered through its concession with the Lagos State Government.

• The project is designed to provide dedicated electricity to the Akute Intake, Iju Waterworks and Adiyan Waterworks, while surplus power will be supplied to Ikeja Electric’s network.
• Fenchurch began site work in September, replacing the existing engines with new MWM gas engines, with 10MW expected within four months and the remaining 16MW within 12 months.
• The Akute project forms part of wider power supply arrangements signed by Lagos with Mainland Power, Fenchurch Power and Viathan Engineering in April, targeting an increase in electricity generation from less than 60MW to between 200MW and 400MW over the next two to three years.

Elektron Energy Development received an operational licence in September for its 40MW Victoria Island Power project, which is expected to begin commercial operations in December and supply businesses through a dedicated distribution network.

Sahara Power Enterprises Group began construction in August on a 12MW independent power plant in Ogba, with a reported investment of $12 million and completion targeted for the first quarter of 2027.

Lagos expands decentralised power market

Private-sector participation is also extending beyond larger independent power plants into off-grid generation, embedded generation, private distribution and mini-grids. In May, the Lagos State Electricity Regulatory Commission approved 14 licences and permits covering off-grid generation, embedded generation, independent electricity distribution, metering and interconnected mini-grids.

• LASERC documents also showed a wider pipeline of applications under consideration, although the proposed projects have not been approved and therefore do not represent operational or committed generation capacity.
• The approvals included Axxela’s 5.8MW off-grid project for Cadbury Nigeria in Agidingbi, a 9MW embedded generation project by Isolo Power Gen and an independent distribution network licence for Isolo Power Supply.
• Applications under consideration include proposed 10MW, 24MW, 30MW and 50MW projects in Epe, Apapa, Agidingbi and Ibeju-Lekki respectively.

The projects cover a range of private participation, including dedicated electricity supply for critical infrastructure, industrial and commercial customers, private distribution and decentralised power projects.