Dear Readers,
Lagos is building a new electricity market from the ground up!
For many Lagos residents and businesses, unreliable electricity has become part of everyday life. Power outages interrupt work, damage appliances, slow down businesses, and force millions to rely on expensive diesel and petrol generators. But the reform now unfolding under the Lagos State Electricity Regulatory Commission (“LASERC”) represents something qualitatively different from past promises of electricity improvement.
Building the Foundation (2021 – Early 2026)
The story of Lagos’ electricity reform began long before now driven by a sustained and deliberate push for energy autonomy and as part of its relentless advocacy campaign, Lagos issued the Lagos State Electricity Policy 2021. However, the pivotal event that set the wheels in motion was the signing of the Fifth Alteration (No. 33) Bill 2022 (the Electricity Constitutional Amendment) into law by former President Muhammadu Buhari. The amendment granted Nigerian states the authority to regulate and operate their own electricity markets, marking a significant shift in Nigeria’s energy governance structure. For Lagos, this was the opening it had been waiting for.
Governor Babajide Sanwo-Olu moved swiftly. On 3 December 2024, he signed the Lagos State Electricity Bill 2024 into law, establishing the LASERC as the state’s dedicated electricity regulator alongside supporting institutions, including the Lagos State Electrification Agency, the Lagos Electrification Fund, the Lagos Independent System Operator, and a Power Enforcement Unit.
In March 2026, the LASERC board was officially inaugurated, marking the moment the Commission could finally move from planning to action. Just weeks later, in April 2026, Lagos signed power purchase agreements with three independent power producers; Mainland Power Limited, Fenchurch Power Limited, and Viathan Engineering Limited. These agreements alone are expected to push Lagos’ electricity generation capacity from under 60MW to somewhere between 200MW and 400MW. Critically, the state also abandoned outdated “take-or-pay” payment arrangements in favour of a system built around metered electricity delivery.
7 May 2026: The Plan Goes Public
At its maiden stakeholder engagement, LASERC unveiled an ambitious short-term regulatory agenda leading up to 2030. The headline? “A pilot rollout of 24/7 electricity franchise zones across parts of Lagos, scheduled to begin in October 2026.”
At the same event, 14 licences were approved across off-grid generation, embedded power, mini-grids, metering, and independent electricity distribution. Notable approvals include Isolo Power Gen Limited, cleared for a 9MW embedded power project along the Apapa-Oshodi Expressway; Axxela Limited to supply power to Cadbury Nigeria in Agidingbi; and Daybreak Power Solutions Limited to serve industrial heavyweights including Nigerian Breweries, Seven-Up, Crown Flour Mill, Nigerdock, and Promasidor. A further 40 applications remain under review.
The Road to October 2026
Between now and the franchise zone launch, a series of milestones are expected to mark progress.
- New grid interface guidelines aimed at improving coordination between Lagos’ state electricity operators and federal institutions are due by July 2026.
- By August, the first consumer complaint centre opens in Amuwo Odofin, giving residents a dedicated space to report electricity issues, with further centres planned for Ikorodu and Epe in September. Also, the framework design for the “Electric Eye of Lagos”, an AI-enabled metering system for real-time monitoring of electricity supply and trading across the city, is expected to be ready with pilot deployment later in October 2026.
- In October, the pilot franchise zones go live, the Electric Eye begins its deployment, and a 100% metering initiative kicks into gear to finally put an end to the estimated billing that has infuriated consumers for years.
Reasons for Caution
None of this is without risk. Large infrastructure costs money. Coordination with existing networks is complex. Electricity theft and energy losses remain stubborn problems. And without consistent government support, investor confidence can evaporate quickly.
From a legal and regulatory standpoint, the robustness of the licensing regime, the enforceability of the power purchase agreements, and the capacity of LASERC to hold licensees accountable will be critical determinants of whether this framework delivers on its promise.
By 2030, LASERC is targeting over 97% electricity availability in Lagos. For a city of this size and economic weight, that ambition backed by law, regulation, real investment, and a clear timeline is genuinely new.
October 2026 is still months away. Success is not guaranteed. But for businesses, investors, and residents with a stake in Lagos’ energy future, this is a regulatory development worth following closely.
