Precious Anga
Lagos — The Lagos State Electricity Regulatory Commission, LASERC, has issued an electricity generation licence for a 40-megawatt gas-fired embedded power project in Victoria Island, as the facility moves towards scheduled commercial operations in December 2026.
The licence authorises electricity generation within Lagos State and comes as the Victoria Island Power, VIPL, project enters an advanced stage of development. The approval is expected to strengthen the state’s drive to decentralise electricity supply and attract private investment into its power market.
VIPL Phase 1 is being developed in partnership with Eko Power, formerly known as Eko Electricity Distribution Company, EKEDC, to provide dedicated electricity to major businesses operating in Victoria Island, including banking headquarters, hotels, telecommunications infrastructure and multinational offices.
The project has an initial generation capacity of 40MW and is designed to expand to 70MW under its full build-out. According to the project developer, the plant is scheduled to commence commercial operations in December 2026.
Several key construction milestones have already been achieved, with the plant’s Wärtsilä generation engines installed and supporting infrastructure at an advanced stage of construction.
Once commissioned, the facility is expected to provide 24/7 dedicated electricity to connected customers through a 12.6-kilometre underground feeder network, offering an alternative supply arrangement for businesses whose operations require more reliable power.
Commenting on the regulatory approval, Chief Executive Officer of Elektron Energy, Tola Talabi, said the licence provided the regulatory foundation for the company to develop power infrastructure tailored to the needs of Nigeria’s commercial and industrial sectors.
“This licence represents an important step forward for Elektron and for the businesses and communities we serve.
“It affirms Lagos State’s confidence in our platform and gives us the regulatory foundation to continue delivering the kind of dependable, purpose-built power infrastructure that Nigeria’s commercial and industrial ecosystems increasingly require. Reliable, professionally-managed power is central to how Lagos will grow. We are proud to play a role in building it.”
The project is backed by a consortium of institutional investors, including ARM-Harith Infrastructure Fund, InfraCredit, the Nigeria Sovereign Investment Authority and the Bank of Industry, while Wärtsilä is serving as Engineering, Procurement and Construction contractor and long-term operations and maintenance partner.
The development adds to a wider portfolio of embedded power projects being pursued across Lagos, including proposed plants at Sangrosse, Ogba, Ibeju-Lekki and Tokarawa, with capacities of 40MW, 40MW, 40MW and 20MW respectively.
The company has also operated embedded power infrastructure in Nigeria for more than 14 years. Its existing projects include the 10.6MW Alausa Independent Power Project, supported by a 15-kilometre distribution network supplying Lagos State Government facilities since 2013, and a 7MW installation serving Rack Centre, a Tier III data centre in Ikeja.
The Victoria Island project comes as Lagos continues efforts to reduce reliance on the national grid by developing decentralised electricity supply systems. Its planned December commissioning will therefore put the 40MW facility on course to test how embedded generation can provide more dependable power to one of Nigeria’s busiest commercial districts.
