Kehinde Fajobi
The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC).
In a statement released on Thursday via X (formerly Twitter), NERC said the decision aligns with the amended Nigerian Constitution and the Electricity Act (EA) 2023.
The legislation allows states to regulate their intrastate electricity markets after notifying NERC and meeting necessary requirements.
“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, 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,” the statement read.
The EA 2023 grants NERC the role of central regulator for inter-state and international electricity operations, while LASERC will oversee intrastate electricity regulation in Lagos.
Two weeks ago, Governor Babajide Sanwo-Olu signed the Lagos State Electricity Bill 2024 into law, setting the stage for this transition.
To facilitate the shift, NERC outlined steps to ensure a smooth handover. These include directives for Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) to create subsidiaries—EKEDP SubCo and IE SubCo—responsible for intrastate supply and distribution of electricity within Lagos.
Both subsidiaries must be incorporated by 5 February 2025 and secure licences from LASERC.
The entire process is expected to be completed by 4 June 2025.