Lagos is preparing to test one of its boldest electricity reforms yet: dedicated franchise zones designed to deliver uninterrupted power supply in selected parts of the state.
The Lagos State Electricity Regulatory Commission (LASERC) says the first set of 24/7 electricity franchise areas will begin pilot operations by October 2026, marking a significant step in the state’s push to build a more independent, reliable, and performance-driven electricity market.
The announcement was made by LASERC Chief Executive Officer, Temitope George, during the commission’s maiden stakeholder engagement held at The Cordis Hotel on Thursday. The initiative forms part of the commission’s Short-Term Regulatory Agenda, a roadmap that outlines Lagos’ electricity transformation strategy through 2030.
Although the specific districts selected for the pilot phase have not yet been disclosed, LASERC says two or three franchise zones will be commissioned initially. The areas are expected to serve as testing grounds for a new electricity management model focused on improved infrastructure coordination, stronger customer service delivery, and greater reliability in power supply.
Beyond simply keeping the lights on, the pilot programme is designed to evaluate whether Lagos can successfully sustain a commercially viable electricity ecosystem outside the limitations that have long defined Nigeria’s broader power sector.
As part of the transition, LASERC plans to introduce Grid Interface Guidelines by July 2026. The framework is expected to regulate operational collaboration between electricity operators licensed by Lagos State and federal electricity institutions.
Another major target is metering. The commission says it will commence a 100% grid and customer metering initiative by July 2026 in a move aimed at improving billing transparency and reducing dependence on estimated billing practices that have frustrated consumers for years.
At the heart of the broader reform agenda is the Electric Eye of Lagos (EEL) Programme, an AI-enhanced advanced metering infrastructure intended to provide real-time visibility into electricity trading and power delivery across the state. LASERC expects the framework design to be completed by August 2026, while pilot deployment is scheduled for October of the same year.
Consumer engagement is also being integrated into the reform process. LASERC says complaint centres will first open in Amuwo Odofin by August 2026, before expanding to Ikorodu and Epe in September.
The commission also plans to release Draft Market Rules by October 2026, with final regulations expected before the end of the year in December. Regulatory Sandbox Guidelines are equally in the pipeline to encourage innovation and deeper private-sector participation in Lagos’ evolving electricity market.
By 2030, LASERC says it aims to reduce market losses to below 10% while achieving more than 97.5% electricity availability across Lagos.
The ongoing reforms trace back to 2024, when Governor Babajide Sanwo-Olu approved the constitution of LASERC following the signing of the Lagos Electricity Bill 2024 into law. The legislation replaced the Lagos State Power Sector Reform Law of 2018 and established a new regulatory framework covering electricity generation, distribution, and tariff administration within the state.
Momentum around the reforms accelerated in March 2026 when Governor Sanwo-Olu formally inaugurated the LASERC board, effectively activating the commission’s operational leadership structure.
The reforms were also enabled by the Federal Government’s 2023 approval granting Nigerian states the authority to generate and distribute electricity independently.
Alongside LASERC, the Lagos Electricity Bill established additional institutions intended to strengthen the state’s energy ecosystem, including the Lagos State Electrification Agency, which is focused on expanding off-grid electricity access. Other support structures introduced under the law include the Lagos Electrification Fund, an Independent System Operator, and a Power Enforcement Unit.
Lagos has also begun expanding its generation capacity through new partnerships with private power companies.
In April 2026, the Lagos State Government signed Power Purchase Agreements and concession deals with three independent power producers as part of plans to increase generation capacity from less than 60MW to between 200MW and 400MW over the next few years.
The agreements involved Mainland Power Limited, Fenchurch Power Limited in partnership with Aggregate Utilities Limited, and Viathan Engineering Limited.
Under the new arrangement, legacy “take-or-pay” and “deemed energy” payment models were scrapped in favour of metered electricity delivery, a move expected to improve transparency and accountability within the market. The state is also introducing dual power supply systems for critical infrastructure to strengthen reliability.
For Lagos, the franchise-zone experiment represents an attempt to build a functioning electricity market around efficiency, measurable performance, and modern regulation, one that could eventually reshape how urban power delivery works in Nigeria’s commercial capital.
The pilot could become one of the clearest examples yet of how subnational electricity reform may redefine the country’s energy future from the ground up.
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