By Adedapo Adesanya

The Lagos State government has approved 14 licences to private operators for off-grid generation, embedded power, independent distribution, metering, and mini-grid services as part of efforts to reshape the electricity landscape in the commercial capital.

The approvals were issued by the Lagos State Electricity Regulatory Commission (LASERC) at its maiden stakeholder engagement in Lagos, signalling the formal activation of the state’s decentralised electricity market.

At the centre of the new framework is a clear shift away from dependence on the national grid towards a structured, state-driven electricity system built on private investment and localised power supply.

Late last month, Business Post reported that the state signed Power Purchase Agreements (PPA) with three firms- Fenchurch Power, Mainland Power, and Viathan for about 60MW of generation, to increase capacity to serve major public facilities in the state.

Under the new licences, Axxela Limited will develop a 5.8MW off-grid power project at Cadbury Nigeria’s facility in Agidingbi. Daybreak Power Solutions Limited secured multiple off-grid generation approvals across major industrial sites, including Seven-Up, Nigerian Breweries, NBC, Crown Flour Mill, Nigerdock, and Promasidor.

Isolo Power Gen Limited also received approval for a 9MW embedded generation project along the Apapa–Oshodi corridor, one of Lagos’ busiest industrial zones.

In addition, Isolo Power Supply Limited was licensed as an Independent Electricity Distribution Network operator. New Hampshire Capital, GossLink Engineering, and Enaro Energy Mini-Grid Limited were approved for metering services and mini-grid operations.

LASERC said the licences are designed to deepen private sector participation and improve electricity reliability across industrial clusters, estates and peri-urban communities where supply remains unstable.

According to the commission, Lagos is building a decentralised electricity model that allows generation and distribution to operate closer to end users rather than relying solely on the national grid.

It noted that the move is to improve access, reduce losses and attract long-term investment into power infrastructure.

The state has set an ambitious target of achieving 97.5 per cent electricity availability by 2030, alongside reducing market losses to below 10 per cent through a performance-driven structure.

As part of the rollout plan, LASERC will introduce two to three 24-hour electricity franchise zones by October 2026. These zones are expected to serve as pilot districts for uninterrupted power supply under private management.

The commission is also preparing a full metering push, targeting 100 per cent coverage by July 2026. Consumer complaint centres will begin operations in phases from August 2026, starting with Amuwo Odofin, followed by Ikorodu and Epe.

One of the most notable reforms is the introduction of the “Electric Eye of Lagos” (EEL) programme, an AI-enabled metering and monitoring system designed to track consumption, reduce estimated billing and improve revenue collection. The pilot phase is expected to begin in October 2026.

LASERC also confirmed that draft market rules will be released in October 2026, finalised by December 2026, and supported with regulatory sandbox guidelines to encourage innovation in the electricity sector.

The reforms are built on the Lagos Electricity Law signed in 2024, which formally created the state’s independent electricity market and empowered LASERC to regulate generation, distribution and tariffs within the state.

That law replaced the earlier 2018 power sector reform framework and marked a structural shift in how electricity is governed in Nigeria’s commercial capital.

In March 2026, the Lagos State Government inaugurated the LASERC board, giving full operational backing to the regulatory framework.

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has called on state governments to cut down on overdrafts and short‑term financing.

According to a statement by the apex bank on Sunday, the advice was given by its Deputy Governor in charge of the Economic Policy Directorate, Mr Muhammad Abdullahi, during an engagement with sub‑national stakeholders, facilitated through the Nigerian Governors Forum Secretariat.

Mr Abdullahi advised them to ensure that borrowing decisions align with debt sustainability thresholds, improve budget realism and revenue forecasting, prioritise expenditure, and better synchronise fiscal calendars with prevailing macroeconomic conditions.

He emphasised the critical role of State Governments in ensuring a successful transition to an Inflation Targeting (IT) monetary policy framework, stressing that sustained price stability can be achieved only through coordinated fiscal discipline across all tiers of government.

Mr Abdullahi described the move toward inflation targeting as a shift to a more rule‑based, transparent, and forward‑looking monetary framework that demands close collaboration with state authorities.

According to him, while the CBN retains responsibility for deploying monetary policy tools to control inflation, fiscal actions, particularly at the sub-national level, play a significant role in shaping inflation outcomes within a federal system such as Nigeria’s.

Mr Abdullahi explained that inflation targeting is fundamentally about managing expectations, warning that uncoordinated or expansionary fiscal actions by State Governments could either reinforce or undermine monetary policy signals.

He noted that states influence inflation through multiple channels, including borrowing decisions, domestic debt accumulation, expenditure patterns, wage bills, capital project execution, salary arrears, overdrafts, contractor financing, and weak coordination on the Federation Account Allocation Committee (FAAC) receipts, cash management, and debt servicing.

“In an inflation‑targeting regime, persistent, unpredictable or expansionary fiscal behaviour at the sub‑national level can significantly undermine price stability,” he said.

The Deputy Governor emphasised that the absence of fiscal dominance, where government borrowing pressures compel the bank to monetise deficits, is a core prerequisite for successful inflation targeting.

He noted that this principle applies not only at the federal level but equally to State Governments.

He urged the states to reduce reliance on overdrafts and short‑term financing, ensure that borrowing decisions align with debt sustainability thresholds, improve budget realism and revenue forecasting, prioritise expenditure, and better synchronise fiscal calendars with prevailing macroeconomic conditions.

Under the inflation‑targeting framework, Mr Abdullahi outlined four key responsibilities for state governments: maintaining fiscal discipline and predictability; pursuing responsible borrowing aligned with medium‑term fiscal frameworks; strengthening coordination on cash and debt management; and enhancing internally generated revenue mobilisation.

He warned that unplanned expenditures, excessive supplementary budgets, and unsustainable debt accumulation could trigger liquidity shocks and elevate inflationary risks.

He reiterated that inflation targeting is a collective national commitment to stability, credibility, and long-term prosperity.

While the CBN remains accountable for delivering price stability, he said the framework’s success ultimately depends on disciplined fiscal behaviour across all tiers of government.

By strengthening coordination and embedding price stability as a shared objective, he added, state governments would support the new framework and lay firmer foundations for growth, job creation, and improved social welfare.

On his part, the Director-General of the NGF, Dr Abdullateef Shittu, represented by Mr Olalekan Yunusa, commended the Governor of the apex bank and the bank’s leadership for what he described as the strategic foresight behind the engagement, particularly the decision to involve sub‑national fiscal authorities at an early stage of the transition process.

He noted that the shift from a monetary-targeting framework to inflation targeting reflects a deliberate commitment to price stability as the central anchor of economic policy.

He added that sustainable macroeconomic stability cannot be achieved through monetary policy alone and requires disciplined coordination across all tiers of government.

By Adedapo Adesanya

The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to probe the alleged missing or diverted N26.9 billion of public funds from the Universal Service Provision Fund (USPF).

In a Sunday statement posted on its official website, the rights group asked President Tinubu to direct the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, and the Secretary of the USPF, Mr Yomi Arowosafe, to account for and explain the whereabouts of the missing funds.

In a letter signed by SERAP deputy director, Mr Kolawole Oluwadare, it was said that USPF is vital to expanding telecommunications access in underserved and rural communities, and any diversion of its funds directly undermines its mandate to bridge the digital divide, support infrastructure development, and promote inclusive connectivity.

SERAP demanded that President Tinubu should direct the Attorney General of the Federation and Minister of Justice Lateef Fagbemi, SAN to appropriate anti-corruption agencies to promptly and effectively investigate the allegations.

It said, “Anyone suspected to be responsible should face prosecution as appropriate, if there is sufficient admissible evidence, and any missing or diverted public funds should be fully recovered and remitted to the treasury.”

According to the statement, the allegations are documented in the latest annual report published by the Auditor-General of the Federation on 9 September 2025.

The organisation noted that, “These allegations, which include unaccounted expenditures, failure to remit public funds, irregular contract awards, and payments for services not rendered, point to serious breaches of public trust and raise concerns about systemic failures in financial accountability within the USPF.”

SERAP expressed that any failure to investigate the allegations and recover any missing or diverted public funds would not only deprive Nigerians of essential services but also frustrate national development objectives and efforts to achieve digital inclusion.

“The failure to ensure accountability for these funds also risks perpetuating inequality, particularly for marginalised and vulnerable groups who depend most on public interventions to access digital infrastructure,” it warned.

According to the letter, SERAP expressed that they would be grateful if the recommended measures were taken within seven days of the publication of this letter.

SERAP warned that if actions are not taken within seven days, it would consider appropriate legal actions to compel the government, Nigerian Communications Commission (NCC), and the USPF to comply with the request in the public interest.

Also in the letter, SERAP alleged that “According to the 2022 audited report by the Auditor-General of the Federation, which was published on 9 September 2025, the Universal Service Provision Fund (USPF) failed to disclose that it maintained a domiciliary (Dollar) account, and failed to grant the Auditor-General access to the books of the account.

“The USPF failed to remit over N13.8 billion [13,874,132.629.50] ‘being 25% annual operating surplus for four years, that is, between 2016 and 2019.’ The Auditor-General fears ‘the money may have been diverted.’ He wants the USPF to account for and remit the money.

“The USPF also ‘claimed to have spent over N11.7 million [N11,793,838.40] on international trainings in October 2020’, but ‘these claims were made without any documents.’ There were no documents, such as a letter of invitation for the programme, no receipt/invoice for registration, and no certificate of participation.”

The rights group further alleged that there was a total lockdown and restriction of movement out of Nigeria on foreign trips during the period (April to October 2020) due to the global COVID-19 pandemic. Yet, payments were made for these trips without any documents.

“The USPF also awarded contracts of over N2.8 billion [N2,853,052,005.90] but without any approval. The USPF failed to ‘provide the procurement procedures and processes adopted in awarding the contracts, including the contract files.’”