Lagos Moves Against 38 Power Firms Operating Without State Approval

The Lagos State Electricity Regulatory Commission (LASERC) has intensified efforts to enforce its electricity market regulations, identifying 38 power operators with a combined generation capacity of almost 600 megawatts that have yet to obtain the required approvals under the state's regulatory framework.

The affected firms, which include major industrial and commercial operators such as MTN Nigeria, Flour Mills Nigeria, Golden Penny Power and Lekki Port LFTZ Enterprise, were previously licensed under the federal regulatory regime but have failed to regularise their operations with LASERC despite repeated directives.

The commission warned that continued non-compliance could attract sanctions, signalling a tougher regulatory stance as Lagos consolidates control over electricity operations within its jurisdiction.

According to LASERC, the companies operate under various categories, including captive power generation, embedded generation, mini-grids, off-grid systems and independent electricity distribution networks.

Together, the operators account for nearly 600MW of generation capacity, highlighting the scale of private power activity now falling under the state's oversight following the implementation of the Electricity Act 2023.

Among the largest facilities yet to be regularised is a 77MW captive power plant operated by First Global Commerce Solutions Limited in Ebute-Meta. Flour Mills Nigeria operates a 74.5MW facility in Apapa, while Golden Penny Power's three power plants account for more than 115MW of installed capacity.

Telecommunications giant MTN Nigeria also appeared on the list, with three captive power installations across Apapa and Ojota that are yet to complete the required licensing process with the state regulator.

Other operators identified include African Steel Mills Nigeria Limited, CHI Limited, Uraga Power Solutions, Irele Energy LFZ Enterprise and several companies operating within the Lagos Free Trade Zone.

LASERC said the affected entities have not commenced or completed the mandatory regularisation process required for continued operation under Lagos State's electricity market framework.

The development reflects the growing transition from federal to state-level regulation following reforms that granted states greater authority over electricity generation, distribution and retail activities within their territories.

With Lagos accounting for a significant share of Nigeria's industrial and commercial electricity consumption, the outcome of the regularisation exercise is expected to shape how state electricity markets evolve across the country.