- Transgrid Enerco and Decentralised Energy have partnered to deliver embedded power in Lagos, targeting reliable 24/7 electricity in key commercial districts.
- The deal signals a shift toward private, scalable energy solutions, backed by financing support to reduce reliance on diesel and improve sector viability.
Transgrid Enerco Limited and Decentralised Energy Limited have signed a strategic collaboration agreement to address persistent electricity shortages in Lagos. This partnership marks a major private-sector intervention in Nigeria’s struggling power industry.
Decentralised Energy announced the deal after Bola Tinubu approved a N3.3 trillion payment plan to stabilise the electricity sector. This plan aims to clear longstanding debts and improve power supply across the value chain.
Furthermore, the partners will deploy integrated embedded power solutions. These systems will bypass recurring failures in the national grid and deliver 24/7 electricity to high-density commercial areas such as Marina, Lekki Phase 1, Ikoyi, and Victoria Island. In addition, InfraCredit supports the project with credit enhancement to attract long-term financing.
Habeeb Alebiosu, CEO of Decentralised Energy, said the partnership builds on years of effort that began in 2011. He emphasised that collaboration drives scale and reduces electricity costs for consumers. He also noted that the integration of distribution infrastructure with power generation creates a more efficient and investor-friendly system.
The partners will execute the project through a special purpose vehicle. This structure will bridge gaps in the power value chain that have affected distribution companies. Decentralised Energy, backed by Anergi and Viathan Groups, contributes operational expertise and investor networks. Meanwhile, Transgrid Enerco leverages its connection to Eko Electricity Distribution Plc to provide distribution capacity.
Olubunmi Peters, Chairman of Transgrid Enerco, stressed the need for a new approach to power delivery. He explained that embedded power will reduce dependence on diesel generators and offer more affordable, reliable electricity. He also encouraged investors to commit to long-term growth in the sector rather than short-term gains.
Meanwhile, InfraCredit strengthens the initiative by reducing financial risks and enabling access to local currency funding. As a result, the partners aim to build a scalable and replicable model for other regions facing grid challenges.
Chinua Azubike, CEO of InfraCredit, identified diesel generators as the main competitor. He explained that the project will replace off-grid generation, which currently produces an estimated 50 gigawatts of power in Nigeria. He added that the partnership signals a shift toward a sustainable, cost-reflective, and viable energy sector.