The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight for the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission (LASERC). The announcement was made in a statement released on Thursday via X, formerly known as Twitter.
This move aligns with the amended provisions of the Nigerian Constitution and the Electricity Act of 2023, which empower states to establish and regulate intrastate electricity markets upon meeting specific conditions.
In its statement, NERC emphasized that it will continue to serve as the central regulator, overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations.
“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), NERC has issued an order to transfer regulatory oversight of the electricity market in Lagos State from the Commission to LASERC,” the statement read.
The Commission further detailed that the Lagos State Government met the requirements stipulated by the law, including delivering a formal notification to NERC requesting the transfer of authority over intrastate electricity operations to the state’s regulatory body.
As part of the transfer process, NERC issued directives for the incorporation of subsidiaries by the existing electricity distribution companies in Lagos State. Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) are required to establish subsidiaries—EKEDP SubCo and IE SubCo respectively—within 60 days from December 5, 2024. These subsidiaries will assume responsibilities for intrastate electricity supply and distribution and must obtain licenses from LASERC to operate legally.
The transition is expected to be fully completed by June 4, 2025, marking a significant shift in Lagos State’s management of its electricity market.
This development follows the recent signing of the Lagos Electricity Bill into law by Governor Babajide Sanwo-Olu. Speaking at the signing ceremony, Governor Sanwo-Olu lauded the state House of Assembly for the expedited passage of the bill and highlighted its transformative potential.
“This legislation will change the socio-economic landscape of Lagos State by ensuring a reliable and steady power supply for all Lagosians,” Sanwo-Olu stated. He added that the bill had been years in the making and its implementation represents a critical milestone for the state’s economic development.
With LASERC now at the helm of electricity regulation within Lagos, residents can anticipate a more localized and efficient approach to power distribution, setting the stage for improved service delivery and enhanced economic growth.
