The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight for Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC).
The announcement, made via a statement on X (formerly Twitter) on Thursday, aligns with the amended provisions of Nigeria’s Constitution and the Electricity Act of 2023.
Under this new arrangement, LASERC will oversee the regulation of electricity within Lagos State, while NERC will retain its role as the central regulator, supervising inter-state and international electricity generation, transmission, supply, trading, and system operations.
NERC stated:
“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (‘NERC’ or the ‘Commission’) has issued an order to transfer regulatory oversight of the electricity market in Lagos State from the Commission to the Lagos State Electricity Regulatory Commission (LASERC).
“Recall that under the EA 2023, the Commission remains the central regulator for inter-state and international generation, transmission, supply, trading, and system operations. The Act also mandates states intending to regulate intrastate electricity markets to formally notify NERC and request a transfer of regulatory authority.”
Following Lagos State’s compliance with these requirements, NERC has issued a transfer order detailing provisions for its implementation.
These include directives for Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) to incorporate subsidiaries (EKEDP SubCo and IE SubCo, respectively) to manage intrastate electricity supply and distribution. The companies must complete incorporation by 5th December 2024 and secure licensing from LASERC. All transfers are expected to conclude by 4th June 2025.
This announcement follows Lagos State Governor Babajide Sanwo-Olu’s recent signing of the Lagos Electricity Bill into law. The governor commended the State House of Assembly for its prompt passage of the bill, emphasising its potential to improve the socio-economic well-being of residents.
Governor Sanwo-Olu remarked that the legislation, years in the making, would ensure a reliable and efficient power supply for Lagosians, fostering economic growth and development.
