Independent power grids gain traction in Lagos

Power generation and supply received a boost in Lagos with the approval of 14 licenses and permits covering off-grid and embedded generation, independent distribution, metering and mini-grid operations.

The approvals were granted by The Lagos State Electricity Regulatory Commission (LASERC) to ensure better power supply in the commercial nerve of Nigeria.

Some of those who have been approved for take-off include Axxela Limited for a 5.8MW off-grid project at Cadbury Nigeria in Agidingbi. Isolo Power Gen Limited received approval for a 9MW embedded generation project along the Apapa-Oshodi Expressway.

Isolo Power Supply Limited was licensed as an Independent Electricity Distribution Network operator.

Other approvals covered facilities operated by companies including Seven-Up, Nigerian Breweries, NBC, Crown Flour Mill, Nigerdock and Promasidor.

The approvals form part of Lagos State’s intrastate electricity market framework aimed at improving electricity supply across industrial and residential clusters.

About 40 additional applications are undergoing approval across embedded generation, captive power and mini-grid categories.

The pipeline highlights growing investor interest in decentralised electricity projects across Lagos.

Notable pending projects include Alaro Power Free Zone Enterprise’s 10MW project in Epe, Takwa Bay Green Power Free Zone Enterprise’s 24MW project in Apapa, Geogrid Lightech’s 30MW project in Agidingbi and Irele Energy LFZ Enterprise’s 50MW project in Ibeju-Lekki.

The growth of embedded generation in Lagos reflects a broader increase in decentralised electricity projects across Nigeria. NERC issued 194 licences, permits and certifications in 2025, up from 168 in 2024.

Mini-grid permits accounted for 64 approvals followed by 43 Meter Service Providers, 30 Meter Asset Providers and 31 captive power projects.

NERC also issued five embedded generation licences, seven electricity distribution network licences and six off-grid generation licences.

The regulator issued its Mini-Grid Regulations 2026 in April to strengthen mini-grid development and electricity access in underserved communities.

The REA said it deployed more than 200 mini-grids in 2025, while the Federal Government plans to spend N100 billion in 2026 on hybrid mini-grids for government agencies.