MTN, 37 others generated 600MW without licences – LASERC

The Lagos State Electricity Regulatory Commission (LASERC) has disclosed that 38 companies operating electricity generation facilities across Lagos State, including MTN Nigeria, Flour Mills Nigeria and several other major industrial operators, have yet to obtain the required licences or complete regulatory regularisation under the state’s electricity framework despite repeated directives from the commission. The affected firms collectively account for nearly 600 megawatts of electricity generation capacity within the state.

According to LASERC, the companies were originally issued various permits and licences under the federal regulatory regime administered by the Nigerian Electricity Regulatory Commission (NERC). However, following the transfer of electricity regulatory powers to states under the Electricity Act 2023 and the establishment of Lagos State’s independent electricity market, operators are now required to obtain the necessary approvals and regularisation from the state regulator.

In a public notice, the commission stated that the affected entities have not commenced or completed the mandatory application process required for licensing within the Lagos electricity market. LASERC noted that despite ongoing engagements, notifications and compliance directives issued to the companies, many have yet to satisfy the regulatory requirements needed to continue operating under the state’s framework.

The commission explained that the firms cut across multiple categories of electricity operations, including captive generation, embedded generation, off-grid power systems, interconnected mini-grids, isolated mini-grids and independent electricity distribution networks. These facilities serve a range of industrial, commercial and residential users spread across different parts of Lagos State.

Among the largest operators identified by the regulator is First Global Commerce Solutions Limited, which operates a 77-megawatt captive power facility in Ebute-Meta. Flour Mills Nigeria Plc was also listed with a 74.5-megawatt captive generation plant located in Apapa, while Lekki Port LFTZ Enterprise Limited operates a 30-megawatt facility within the Lagos Free Trade Zone. Irele Energy LFZ Enterprise was similarly identified for a 50-megawatt embedded generation project in Ibeju-Lekki.

MTN Nigeria featured prominently on the list due to multiple captive generation installations across Lagos. The telecommunications company was identified as operating three facilities with capacities of 3.46 megawatts, 4.5 megawatts and 5.4 megawatts respectively. These facilities are located at the company’s switching centres in Apapa and Ojota and were among those yet to be regularised under LASERC’s licensing framework. Although MTN previously received federal permits for captive power generation from NERC, the Lagos regulator maintains that operators must now comply with state licensing requirements.

Golden Penny Power Limited also appeared multiple times on the commission’s list. The company operates several power facilities in Lagos, including installations in Surulere, Apapa and Tin Can Island, with a combined generation capacity exceeding 115 megawatts. Other organisations identified by LASERC include African Steel Mills Nigeria Limited, CHI Limited, CCK Electric Power Technology Company Limited, Uraga Power Solutions Limited and several free-zone enterprises operating within the Lekki corridor.

The regulator stressed that the notice should serve as a final reminder to affected entities to begin the necessary regularisation process. Industry stakeholders say the development reflects Lagos State’s determination to establish a comprehensive regulatory framework capable of overseeing all electricity activities within its jurisdiction following reforms introduced by the Electricity Act.

The Electricity Act 2023 fundamentally altered Nigeria’s power sector structure by allowing states to regulate electricity generation, transmission, distribution and retail activities within their territories. In response, Lagos State established LASERC to supervise its emerging electricity market and ensure compliance with local regulatory standards. Since its creation, the commission has introduced several measures aimed at strengthening market governance, encouraging private investment and improving electricity access.

Analysts note that many companies invested in captive and off-grid power facilities over the years due to persistent challenges within the national grid. Industries, telecommunications operators, ports and manufacturing firms increasingly rely on self-generated electricity to maintain operations and reduce disruptions caused by unreliable public power supply. The rapid growth of these private generation facilities has made effective regulation increasingly important.

Experts believe that proper licensing and regulatory oversight can improve operational transparency, enhance safety standards and provide better data for electricity planning within the state. They also argue that bringing all operators under a unified framework could support Lagos’ long-term goal of developing a more efficient and competitive electricity market.

While LASERC has not announced penalties against the affected firms, the commission reiterated that compliance with state regulations remains mandatory. Stakeholders expect discussions between the regulator and the companies to continue in the coming months as Lagos accelerates efforts to formalise its electricity market and strengthen oversight of power generation activities.

With nearly 600 megawatts of generation capacity involved, the regularisation exercise represents one of the most significant regulatory developments in Lagos’ evolving power sector and could shape the future relationship between private electricity operators and state regulators across Nigeria.