Private investors are moving into Lagos's power sector as Isolo Power Gen Limited secures regulatory approval to develop a 9 megawatt embedded power generation project. The initiative marks a significant step in the state's push to build an independent, decentralised electricity market.
Approval and Impact
The approval was granted by the Lagos State Electricity Regulatory Commission (LASERC) as part of its latest licensing round. Isolo Power Gen is one of 14 companies cleared but stands out as the only operator approved under the embedded generation category for a 9MW project. This framework allows electricity to be generated and distributed directly within a local network, bypassing the inefficiencies of the national grid.
If completed and fully operational, residents and businesses in Isolo and nearby areas could have access to 24-hour electricity supply, a prospect that remains elusive for most Nigerians.
Project Location and Structure
The facility will be developed along the Apapa-Oshodi Expressway in Isolo and is designed to supply power through a localised distribution system. Ownership is structured across four entities: Westfield Assets Limited and Camara Exim Limited, both registered in the British Virgin Islands, alongside Nigerian conglomerate Chellarams Plc and businessman Suresh Chellaram.
The international capital backing points to growing investor confidence in Lagos's emerging state-level electricity market, which has been taking shape since the 2023 constitutional reform that granted states authority to regulate and operate their own electricity systems.
Regulatory Framework
Lagos moved quickly to implement the reforms. Governor Babajide Sanwo-Olu inaugurated the LASERC board in March 2026, formally activating oversight of generation, distribution, and tariffs within the state. Supporting institutions including the Lagos State Electrification Agency, an Independent System Operator, and a Power Enforcement Unit have also been established.
Isolo Power Gen's approval is a concrete outcome of this regulatory architecture. With 14 licensees cleared in a single round, the pace at which private capital is entering Lagos's power sector suggests the decentralisation experiment is gaining real momentum.
