* As NERC transfers regulation to LASERC
Lagos government has officially taken control of its electricity market following the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity Regulatory Commission (LASERC).
The formal announcement was made during an event held at NERC’s headquarters in Abuja, attended by the Commissioner for Energy and Mineral Resources of Lagos State, Mr. Biodun Ogunleye.
The decision aligns with the Electricity Act 2023 and the amended Constitution of the Federal Republic of Nigeria, which empower states to regulate intrastate electricity markets. With this transfer, Lagos joins the few states to gain full regulatory control of its electricity market, marking a significant milestone in the decentralization of the country’s power sector.
Under this arrangement, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) are required to establish subsidiaries – EKEDP SubCo and IE SubCo, respectively – to manage electricity supply and distribution exclusively within Lagos State. These subsidiaries must be incorporated within 60 days from December 5, 2024, and must obtain licenses from LASERC. The transition, including all necessary regulatory and operational adjustments, is expected to be completed by June 4, 2025.
Speaking at the event, Ogunleye lauded the NERC for enabling the transition, reaffirming the State’s readiness to deliver improved electricity services.
He highlighted the opportunities this transfer presents for the state to tailor policies to its unique needs, enhance service delivery, and attract private sector investments to drive innovation and economic growth.