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Lagos Reforms Power Sector to Produce and Distribute Electricity Locally

Lagos Reforms Power Sector to Produce and Distribute Electricity Locally
Wednesday, 29 April 2026 13:14
  • Lagos secures 400 MW from private producers for essential services

  • Reform allows the state to regulate and distribute electricity locally

  • Move follows repeated national grid failures across Nigeria

Lagos State steps up efforts to gain greater control over its electricity supply as repeated failures of Nigeria’s national grid continue to disrupt power delivery. The reform allows the state to generate and distribute electricity locally, following a federal law adopted in 2023, according to official statements released on April 28.

As part of this shift, Lagos has signed agreements with private power producers to secure about 400 megawatts (MW) for essential public services. The contracts are structured around actual electricity delivered, a change from previous arrangements that local authorities considered costly and inefficient.

The reform also gives Lagos the authority to regulate its own electricity market, a function previously managed at the federal level. State officials say the goal is to reduce reliance on a centralized system prone to widespread failure. More than 20 Nigerian states have begun similar processes, according to government sources.

The current push builds on earlier regulatory changes. In December 2024, Governor Babajide Sanwo-Olu signed the Lagos Electricity Bill into law, with the aim of improving power supply within the state.

The law followed a series of national grid collapses in 2024 that affected 19 states, including Lagos. Instability has continued into 2026, with the grid failing twice between January 23 and January 27.

Abdel-Latif Boureima

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