The Federal Government, via the Nigerian Electricity Regulatory Commission, has transferred the regulatory responsibility for the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission.
This was disclosed in a statement by NERC on X (formerly Twitter) on Thursday.
This transfer of regulatory oversight follows the amended provisions of the Nigerian Constitution and the Electricity Act of 2023, which granted states more autonomy in regulating their electricity sectors.
The move empowers Lagos State to manage its electricity market, with a focus on improving service delivery and ensuring better oversight.
The EA 2023 maintains NERC’s role as the central regulator for inter-state and international electricity operations, covering generation, transmission, supply, trading, and system management.
While NERC will continue to oversee national activities, LASERC will now serve as the designated authority for regulating Lagos’ intrastate electricity market, focusing on local distribution and service delivery within the state.
The Lagos State Government met all legal requirements set by the Electricity Act 2023 to request the transfer of regulatory oversight. After fulfilling the necessary formalities, Lagos notified NERC, initiating the handover process.
This shift marks a significant step in the decentralization of regulatory power within Nigeria’s electricity sector, granting states greater autonomy to manage their local energy markets.
The NERC’s Order outlines several steps to ensure a smooth transition of responsibilities to LASERC. Key provisions of the Order include:
Eko Electricity Distribution Plc (EKEDP): The company has been instructed to establish a subsidiary, EKEDP SubCo, to take over the intrastate supply and distribution of electricity in Lagos State. The incorporation of EKEDP SubCo must be completed within 60 days from 5th December 2024. Once incorporated, EKEDP SubCo will apply for a license to operate under LASERC’s regulations.
Ikeja Electric Plc (IE): Similarly, Ikeja Electric is required to create a subsidiary, IE SubCo, which will assume responsibility for the intrastate supply and distribution of electricity in Lagos State.
IE SubCo is expected to be incorporated within the same 60-day period, with plans to apply for a license from LASERC to operate in compliance with the new regulatory framework.
