Lagos, LCCI Push for Increased Investment in Community-Owned Mini-Grids

The Lagos State Government, in collaboration with the Lagos Chamber of Commerce and Industry (LCCI), has renewed calls for increased investment in community-owned mini-grids as part of broader efforts to tackle electricity shortages and promote sustainable energy access across the state.

The renewed advocacy comes amid persistent challenges in Nigeria’s national power supply, which has continued to fall short of demand, leaving many communities, small businesses, and industrial clusters dependent on costly self-generation options. Lagos authorities and the LCCI believe that community-driven mini-grid projects offer a practical and scalable solution capable of delivering reliable, affordable, and cleaner power to underserved areas.

Lagos State officials emphasised that the model of community-owned mini-grids aligns with the state’s long-term energy transition plans, which focus on decentralised power systems, renewable energy adoption, and public-private collaboration. According to the government, mini-grids have already proven successful in several rural and peri-urban communities across Nigeria, offering steady power where the national grid has been unreliable or completely absent. Lagos aims to expand this model, not only as a means of improving electricity access but also as a strategic driver of economic development and social inclusion.

During recent engagements with investors, energy developers, and financial institutions, the Lagos government highlighted that mini-grids can play a crucial role in supporting micro-, small-, and medium-scale enterprises (MSMEs), which make up the backbone of the state’s economy. Thousands of small businesses in Lagos spend large portions of their revenue on fueling generators due to unstable grid power. Officials explained that community-owned mini-grids, especially those powered by renewable sources such as solar, can significantly reduce operating costs for businesses, enhance productivity, and stimulate local economic activities.

The LCCI echoed this position, noting that sustained investment in decentralised energy systems will help create a more resilient and competitive business environment in Lagos. The chamber stated that poor electricity supply has been a major barrier to growth for many enterprises, particularly startups and manufacturing hubs that rely on consistent power to operate machinery. The chamber believes that mini-grids, if designed with community ownership and investor participation, can provide a more dependable power alternative and reduce the financial strain associated with generator use. The chamber also urged policymakers to create business-friendly regulations that support long-term investment and innovation in the mini-grid segment.

LCCI representatives further pointed out that community-owned mini-grids offer additional economic and social benefits beyond power supply. These include job creation during installation and maintenance, opportunities for local capacity development, and improved social infrastructure. In communities where mini-grids are already functioning, residents have reported better lighting for schools and health centres, safer nighttime environments, and reduced noise and air pollution compared to diesel generators. The chamber believes scaling such benefits across Lagos requires coordinated efforts among government, investors, and local communities.

The Lagos State Government said it is prepared to provide an enabling environment for investors by addressing existing barriers such as regulatory bottlenecks, financing constraints, and technical challenges. Officials explained that the state is working closely with energy agencies to develop streamlined approval processes, offer incentives for renewable energy projects, and encourage private developers to adopt community-focused business models. The government also assured prospective investors of transparency, policy stability, and partnerships that align with the state’s broader sustainability goals.

One of the key issues highlighted by stakeholders is the need for innovative financing models to support mini-grid expansion. Financial institutions have traditionally been cautious about funding energy projects due to perceived risks, but Lagos and the LCCI stressed that community ownership reduces default risks, promotes accountability, and ensures project sustainability. They encouraged banks, development finance institutions, and impact investors to explore flexible financing arrangements such as blended finance, low-interest loans, and performance-based grants.

Energy sector analysts noted that Lagos has the potential to become Nigeria’s leading hub for renewable and decentralised energy if investment in mini-grids is scaled efficiently. They referenced the state’s large population, robust economy, and significant energy demand as factors that make it a prime location for innovative power solutions. Analysts also pointed out that while mini-grids alone cannot solve the nation’s energy crisis, they provide a practical complement to the national grid and can help reduce pressure on overstretched transmission and distribution infrastructure.

Local community leaders who participated in the engagement forums expressed optimism about the mini-grid initiative. They said communities are willing to take part in co-ownership structures that allow them to contribute to project maintenance and benefit from continuous, reliable power. According to them, previous donor-funded or privately run mini-grids sometimes collapsed due to lack of community involvement, making shared ownership a preferred model for long-term success.

As Lagos positions itself to strengthen its decentralised energy market, both the government and the LCCI believe that now is the best time to scale mini-grid investments, especially with the growing global shift toward renewable energy and sustainable development. They emphasised that achieving universal electricity access in Lagos will require collective efforts, strategic planning, and financial commitments from stakeholders across sectors.

The push for community-owned mini-grids represents an important step toward building an efficient, inclusive, and climate-friendly energy future for Lagos State. By promoting investment, strengthening partnerships, and empowering local communities, Lagos and the LCCI hope to establish a replicable model that could transform energy access not only within the state but across Nigeria.