The approval places Isolo Power Gen among 14 newly licensed operators, but uniquely positions it as the only project cleared in the embedded generation category at the 9MW scale in this round.
The planned facility will be sited along the 110/114 Apapa–Oshodi Expressway in Isolo, a densely populated and industrial corridor of Lagos. Once operational, it is expected to supply electricity directly to Isolo and surrounding communities through a localized distribution network, reducing reliance on long-distance grid transmission and improving supply reliability.
The project is structured under an embedded generation framework, a model that allows power to be generated close to consumption points and injected directly into a dedicated distribution system. This approach is increasingly being used to address chronic supply gaps in urban industrial zones.
If successfully delivered, the development is expected to significantly improve electricity access in the area, with projections indicating that residents and businesses could experience near-continuous power supply.
Isolo Power Gen Limited will develop and operate the 9MW facility, with ownership interests spanning Westfield Assets Limited (British Virgin Islands), Camara Exim Limited (British Virgin Islands), Chellarams Plc, and Suresh Chellaram.
The approval comes amid broader activity across Lagos’ emerging electricity market, where dozens of applications are still undergoing review under embedded generation, captive power, and mini-grid categories.
A regulatory review of LASERC filings shows that roughly 40 additional projects remain in the pipeline. These include several large-scale proposals such as:
- Alaro Power Free Zone Enterprise – 10MW (Epe)
- Takwa Bay Green Power Free Zone Enterprise – 24MW (Apapa)
- Geogrid Lightech Ltd – 30MW (Agidingbi)
- Irele Energy LFZ Enterprise – 50MW (Ibeju-Lekki)
The growing pipeline highlights rising investor appetite for decentralised electricity solutions, particularly within industrial free zones and high-demand corridors across Lagos.
The regulatory framework enabling these developments was strengthened following the passage of the Lagos Electricity Bill 2024, which replaced earlier reforms and established an independent state-level electricity market.
In March 2026, Lagos State Governor Babajide Sanwo-Olu formally inaugurated the LASERC board, activating full regulatory oversight of generation, distribution, and tariff structures within the state electricity ecosystem.
The reform direction is anchored on broader constitutional changes introduced in 2023 that granted Nigerian states authority to independently regulate and operate electricity markets. Supporting institutions, including the Lagos State Electrification Agency, the Lagos Electrification Fund, an Independent System Operator, and a Power Enforcement Unit, have also been established to strengthen implementation.
In parallel, Lagos State has signed multiple Power Purchase Agreements with private developers aimed at expanding generation capacity from under 60MW to between 200MW and 400MW. The strategy also includes a shift toward metered supply systems and hybrid power delivery models for critical infrastructure, reflecting a long-term push to stabilise electricity access across Africa’s most populous city.