- The Nigerian Electricity Regulatory Commission (NERC) has transferred Lagos State’s electricity market oversight to the newly established Lagos State Electricity Regulatory Commission (LASERC).
- Eko Electricity Distribution Plc and Ikeja Electric Plc are required to create subsidiaries to manage intrastate electricity supply and distribution in Lagos under the new regulatory framework.
The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission (LASERC).
This decision is by the amended Electricity Act of 2023 and the Constitution of the Federal Republic of Nigeria, which grants states the authority to regulate their intrastate electricity markets. While NERC remains responsible for interstate and international electricity generation, transmission, and system operations, this shift allows Lagos to manage its local energy needs more effectively.
The move follows Lagos State’s compliance with the Electricity Act’s requirements, including submitting a formal notification and request to NERC for the transfer of oversight. As part of this transition, two major electricity distribution companies in Lagos, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) have been directed to incorporate new subsidiaries: EKEDP SubCo and IE SubCo.
These subsidiaries will assume responsibility for the intrastate supply and distribution of electricity within Lagos State. Both subsidiaries must apply for and obtain licenses from LASERC, with the process expected to be completed by June 2025.
The transfer of regulatory responsibilities is crucial to improving the electricity supply in Lagos, Nigeria’s commercial capital. By enabling local governance over energy matters, the state hopes to address long-standing issues with power supply reliability and attract more investment in the energy sector.
Governor Babajide Sanwo-Olu emphasised that this regulatory autonomy is essential for boosting the state’s energy infrastructure, ensuring more consistent electricity distribution, and fostering innovation in energy solutions.
The creation of LASERC is part of a broader trend across Nigeria, where other states like Enugu, Ekiti, and Oyo have also set up their electricity regulatory bodies following the passage of the Electricity Act. This decentralisation of energy management is expected to promote sustainable energy practices, improve electricity service delivery, and reduce reliance on the overstretched national grid.
In addition to overseeing electricity distribution companies, LASERC will facilitate the development of independent power projects and ensure compliance with energy regulations. With the transfer, Lagos aims to create a more responsive and efficient energy sector, ultimately improving the quality of life for residents and supporting the state’s economic growth.
The initiative also opens the door for increased private sector participation in energy projects, which is expected to enhance regional power supply and distribution further.