Lagos to review private investment in power sector

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

As reported by Nairametrics on Thursday, the government disclosed this in a statement 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 summit will focus on the implementation of the 2024 electricity law, particularly its implications for private-sector participation and investment across the electricity value chain.

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

The 2026 Lagos Energy Summit will examine the evolving regulatory framework and how it can support a reliable and sustainable electricity market in the state.

Renewable energy, electricity infrastructure and decentralised generation are expected to feature prominently in the discussions.

Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the summit would assess progress since the enactment of the Lagos State Electricity Law and create opportunities for strategic partnerships and investment.

“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,” Ogunleye said.

The summit was initially scheduled for September but was moved to November to allow for further preparations.

The investment discussions come as private operators continue to develop power projects and enter supply arrangements across the state.

One of the latest projects 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, with surplus power to be supplied to the network of Ikeja Electric.

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Fenchurch began site work in September, replacing the existing engines with new MWM gas engines. About 10MW is expected to come online within four months, while the remaining 16MW is expected within 12 months.

The Akute project is part of broader power supply arrangements signed by the Lagos State Government with Mainland Power, Fenchurch Power and Viathan Engineering in April.

The arrangements are aimed at increasing electricity generation in Lagos from less than 60MW to between 200MW and 400MW over the next two to three years.

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

Sahara Power Enterprises Group also began construction in August on a 12MW independent power plant in Ogba. The project reportedly involves an investment of $12 million and is targeted for completion in the first quarter of 2027.
Decentralised power market expands
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 areas including off-grid generation, embedded generation, independent electricity distribution, metering and interconnected mini-grids.
LASERC documents also showed a wider pipeline of applications under consideration.

However, the proposed projects have not been approved and therefore do not represent operational or committed generation capacity.

Among the approved projects was Axxela’s 5.8MW off-grid project for Cadbury Nigeria in Agidingbi. Other approvals included 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 reflect the growing range of private participation in Lagos’ electricity market, covering dedicated power supply for critical infrastructure, industrial and commercial customers, private distribution and decentralised generation.

The November summit is therefore expected to provide an opportunity for government and private-sector stakeholders to assess progress under the 2024 electricity law and identify further investment and partnership opportunities across Lagos’ electricity market.