A quiet but significant shift in Lagos State’s electricity landscape is beginning to expose compliance gaps among major power operators, with dozens of firms yet to align with the state’s emerging regulatory framework.
The Lagos State Electricity Regulatory Commission (LASERC) has flagged 38 companies operating across the state for failing to apply for the required licences and regularisation, despite what it described as repeated engagement and official directives.
These operators collectively control nearly 600 megawatts of generation capacity, spanning industrial, commercial, and distributed power systems across Lagos.
According to the commission, the firms—many of which were originally licensed under the federal framework of the Nigerian Electricity Regulatory Commission (NERC)—have not transitioned into the state’s new regulatory structure introduced following the decentralisation of electricity oversight under Nigeria’s Electricity Act 2023.
“Yet to commence required application process”
In a public notice, LASERC stressed that compliance has been slow or absent despite prior notifications.
“This is to officially notify all concerned stakeholders and the general public that the underlisted 38 licensees are yet to apply to the Lagos State Electricity Regulatory Commission for the necessary licensing and regularisation in line with the regulatory requirements guiding electricity operations within Lagos State.”
The agency added:
“Despite ongoing engagements, notifications, and directives issued by the Commission, the affected entities are yet to commence or complete the required application process for licensing with LASERC as mandated under the applicable laws and regulatory framework.”
The warning signals a tightening enforcement stance as Lagos seeks to consolidate authority over electricity generation and distribution within its territory.
Big-name operators, major power assets affected
Among the most prominent names on the list is MTN Nigeria Communication Plc, which reportedly operates three captive plants across Lagos—at Apapa Switch and Ojota Switch Energy Centres—ranging between 3.46MW and 5.4MW.
Also featured is Flour Mills Nigeria Plc, alongside its power subsidiary Golden Penny Power Limited, with multiple facilities totalling over 115MW across Apapa and Iganmu industrial zones.
Other major operators flagged include:
- First Global Commerce Solutions Limited — operating a 77MW plant at Railway Compound, Ebute-Meta
- Lekki Port LFTZ Enterprise Limited — with a 30MW facility in Ibeju-Lekki
- African Steel Mills Nigeria Limited — operating a 20MW plant in Ikorodu industrial estate
- CHI Limited — with a 14.6MW facility in Ajao Estate
- Uraga Power Solutions Limited — supplying a 30MW embedded generation system in Apapa
The list also includes Contour Global Solutions Nigeria Limited and Daybreak Power Solutions Limited, both active in off-grid generation projects, with Daybreak appearing twice for installations in Ikeja and Badagry.
Free zones, estates, and public infrastructure in the mix
Operators within Lagos free zones and estate networks are also affected.
Entities such as ABV Utility Limited, Alaro Connect Free Zone Enterprise, and LADOL Integrated Logistics FZE Enterprise were listed for providing embedded or distribution services without completing state-level licensing.
Another notable entry is IPL Distribution Company Limited, which supplies electricity to key public institutions including hospitals, courts, and street lighting infrastructure.
Mini-grids and rural power schemes also affected
The compliance notice extends to smaller-scale electricity providers as well.
A4&T Power Solutions Limited holds an interconnected mini-grid serving communities in Epe with about 880kW capacity, while Solad Integrated Power Solutions Limited operates a 300kW system serving Balogun Modern Market.
“Sanctions or enforcement actions” warning issued
LASERC cautioned that continued non-compliance would not be tolerated.
“This is to officially notify all concerned stakeholders and the general public that the underlisted 38 licensees are yet to apply to the Lagos State Electricity Regulatory Commission for the necessary licensing and regularisation in line with the regulatory requirements guiding electricity operations within Lagos State.”
It further warned:
“Continued non-compliance could attract sanctions or enforcement actions as provided by law.”
The commission also urged affected operators to comply “without further delay” to avoid penalties and ensure lawful continuation of operations.
A test case for Nigeria’s decentralised power market
The enforcement drive highlights the evolving role of state regulators following the Electricity Act 2023, which empowered subnational governments to regulate generation, transmission, and distribution within their jurisdictions.
For Lagos, Nigeria’s commercial hub, the transition is particularly significant given its dense concentration of industrial power users and embedded generation systems.
While many of these operators were previously licensed under federal oversight, LASERC’s actions suggest that the state is now pushing for full regulatory migration—potentially reshaping how electricity is generated, distributed, and managed within Lagos.