The Lagos State Government is set to review private investment opportunities in the state's electricity market. This review will take place in November, as part of the second Lagos Energy Summit. The summit, scheduled for November 10 and 11, 2026, will assess developments under the Lagos State Electricity Law, 2024. The law's implications for private-sector participation and investment across the electricity value chain will be a key focus. Several private power projects are currently in development across Lagos.
The 2026 Lagos Energy Summit will examine the evolving regulatory framework and its potential to support a reliable and sustainable electricity market. Renewable energy, electricity infrastructure, and decentralised generation will feature prominently in the discussions. Commissioner for Energy and Mineral Resources, Biodun Ogunleye, stated that the summit would assess progress since the enactment of the Lagos State Electricity Law. It will also create opportunities for strategic partnerships and investment. The summit was initially scheduled for September but was postponed to November.
Private operators are developing power projects and entering supply arrangements across the state. One of the latest projects is Fenchurch Power Limited's 26MW rebuild of the Akute Independent Power Plant. The project is being delivered through a concession with the Lagos State Government. It aims to provide dedicated electricity to the Akute Intake, Iju Waterworks, and Adiyan Waterworks. Surplus power will be supplied to the network of Ikeja Electric. Fenchurch began site work in September, replacing existing engines with new MWM gas engines.
The Akute project is part of broader power supply arrangements signed by the Lagos State Government in April. The arrangements involve Mainland Power, Fenchurch Power, and Viathan Engineering. They aim to increase electricity generation in Lagos from less than 60MW to between 200MW and 400MW over the next two to three years. Elektron Energy Development received an operational licence in September for its 40MW Victoria Island Power project. The project is expected to commence commercial operations in December.
Sahara Power Enterprises Group began construction in August on a 12MW independent power plant in Ogba. The project reportedly involves an investment of $12 million and is targeted for completion in the first quarter of 2027. Private-sector participation is extending beyond larger independent power plants into off-grid generation, embedded generation, private distribution, and mini-grids. In May, the Lagos State Electricity Regulatory Commission approved 14 licences and permits covering areas including off-grid generation.
The approved projects include Axxela's 5.8MW off-grid project for Cadbury Nigeria in Agidingbi. Other approvals include a 9MW embedded generation project by Isolo Power Gen and an independent distribution network licence for Isolo Power Supply. Applications under consideration include proposed 10MW, 24MW, 30MW, and 50MW projects in various locations. The November summit will provide an opportunity for government and private-sector stakeholders to assess progress under the 2024 electricity law.
The summit will identify further investment and partnership opportunities across Lagos' electricity market. The growing range of private participation in Lagos' electricity market covers dedicated power supply for critical infrastructure, industrial and commercial customers, private distribution, and decentralised generation. The review of private investment opportunities aims to support a reliable and sustainable electricity market in the state. Key stakeholders will converge to discuss the future of Lagos' power sector.
Key points
- Lagos reviews private investment in power sector ahead of 2026 energy summit.
- Private power projects are being developed across Lagos, including Fenchurch Power's 26MW Akute Independent Power Plant.
- The summit will assess progress under the 2024 electricity law and identify investment opportunities.
