The Lagos State Government is intensifying efforts to unlock additional electricity for businesses and households after regulators identified infrastructure bottlenecks between the Transmission Company of Nigeria and electricity distribution companies that are restricting power from reaching consumers.
The Lagos State Electricity Regulatory Commission reached the conclusion following a fact-finding inspection of major TCN infrastructure, including the Akangba and Ijora transmission substations.
The exercise followed concerns that approximately 200 megawatts of electricity that could potentially serve Lagos consumers was being constrained within the electricity supply chain.
LASERC Executive Member for Engineering and Standards, Adekunle Olapade, said the commission’s assessment found that both TCN and the distribution companies have capacity, but bottlenecks between the two sides need to be resolved.
Distribution Infrastructure Needs Investment
According to LASERC, the constraints include distribution infrastructure and system-protection challenges that affect the ability to move additional electricity from the transmission network to end users.
The regulator said greater investment in distribution infrastructure would be required for Lagos to absorb more available electricity.
TCN also raised concerns about frequent tripping, particularly during the rainy season.
For businesses, resolving the bottlenecks could have wider economic implications.
Unreliable grid electricity forces many companies to depend on alternative energy sources, adding to operating expenses in manufacturing, retail, hospitality and other industries.
Increasing the amount of electricity that reaches businesses would not automatically eliminate those costs, but improved supply reliability could reduce dependence on self-generation for some users.
Vandalism Adds to Electricity Challenges
LASERC also identified vandalism and theft of electricity infrastructure as threats to the state’s electricity network.
The regulator called for stronger public awareness to protect underground cables, overhead equipment and other electricity assets.
The commission examined both transmission capacity and the relationship between TCN and distribution companies in moving electricity to consumers.
Its assessment indicates that addressing the problem will require coordination across the electricity value chain rather than simply increasing generation.
Lagos Expands State Electricity Market
The development comes as Lagos builds out its own electricity-market regulatory structure following reforms that gave states greater responsibilities in the power industry.
In May, Lagos approved 14 electricity licences and permits covering off-grid generation, embedded generation, independent distribution, metering and mini-grid projects.
Among the projects was a 5.8MW off-grid development by Axxela Limited at Cadbury Nigeria in Agidingbi, alongside several projects by Daybreak Power Solutions.
The approvals also included a 9MW embedded generation project by Isolo Power Gen Limited and an independent distribution licence for Isolo Power Supply Limited.
Earlier this month, LASERC granted Elektron Energy Development an operational licence for its 40MW Victoria Island Power project.
24-Hour Electricity Zones Planned
LASERC is also preparing a pilot programme for 24/7 electricity franchise zones, with rollout expected to begin in October 2026 as part of its Short-Term Regulatory Agenda.
The broader objective is to improve reliability, attract private investment and establish a more efficient electricity market through 2030.
For Lagos, where thousands of businesses depend on generators and other alternative sources to supplement grid electricity, the success of those reforms could influence operating costs and investment decisions.
The immediate priority, however, is resolving the bottlenecks preventing available electricity from reaching consumers.
If TCN, the distribution companies and Lagos regulators can address those constraints, the state could unlock additional power without waiting for entirely new generation capacity to come online.
