Lagos State electricity regulators have flagged dozens of companies running private power plants without completing the required state licensing process. The move reflects tighter oversight of embedded and captive power generation under the state’s new electricity framework.
According to the Lagos State Electricity Regulatory Commission (LASERC), the affected firms operate facilities with a combined capacity of about 600 megawatts. The list includes major companies such as MTN Nigeria, along with firms in manufacturing, logistics, food processing, and free trade zones.
Many of the companies earlier received permits from the Nigerian Electricity Regulatory Commission (NERC). These permits allowed them to run captive or embedded power plants for private use due to unreliable grid supply.
However, Lagos now enforces its own electricity law under the Electricity Act 2023. As a result, operators must obtain or update licences from LASERC to continue operating legally in the state.
The flagged plants include several categories. These include captive power stations that supply factories, embedded generation systems serving estates and business districts, and mini-grid installations in special economic zones.
These systems have become critical for many businesses in Lagos. They help companies maintain steady electricity supply in a market with high demand and frequent grid instability.
LASERC says several operators have not met the required transition conditions despite earlier notices. The regulator warns that it may take enforcement action if non-compliance continues. Possible penalties could follow as the state strengthens compliance in the electricity sector.
Nigeria has seen rapid growth in self-generation of electricity over the past decade. Many large consumers now rely on private power plants due to weak grid performance.
This trend has created a parallel power supply system across the country. Industrial and commercial users now account for a large share of privately generated electricity.
Officials in Lagos say the new licensing system will improve coordination in the electricity market. They also aim to raise safety standards and increase transparency in power generation and distribution as the state builds its own electricity market structure.
