Energy
Lagos State assumes full control of electricity market in historic milestone
In a landmark achievement for Nigeria’s power sector, Lagos State has officially taken control of its electricity market, marking a significant step in the decentralization of electricity regulation in the country.
The transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity Regulatory Commission (LASERC) was announced during a historic event held at NERC’s headquarters in Abuja on December 5, 2024.
The Honourable Commissioner for Energy and Mineral Resources of Lagos State, Mr. Biodun Ogunleye, led the state delegation at the event, emphasizing the transformative potential of this groundbreaking development.
The transfer is in line 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 State becomes one of the few states in Nigeria to gain full regulatory control over its electricity market. This move sets a precedent in the ongoing decentralization efforts aimed at improving efficiency, innovation, and service delivery in the nation’s power sector.
Under the new directive, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) are required to establish subsidiaries—EKEDP SubCo and IE SubCo—to handle electricity supply and distribution exclusively within Lagos State.
These subsidiaries must be incorporated within 60 days from December 5, 2024, and will operate under licenses issued by LASERC. The transition process, including all regulatory and operational changes, is expected to be finalized by June 4, 2025.
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Speaking at the event, Commissioner Ogunleye commended NERC for its forward-thinking approach in facilitating the transition. He reaffirmed Lagos State’s readiness to enhance electricity services and capitalize on the opportunities this transfer presents.
“This historic step allows Lagos to tailor electricity policies to meet the specific needs of our residents, attract private sector investment, and drive economic growth,” he stated.
The transfer of regulatory oversight to LASERC positions Lagos State to take a more active role in addressing electricity challenges, improving service delivery, and ensuring efficient and reliable power supply for its residents.
With LASERC at the helm, the state government aims to implement innovative strategies to foster a sustainable and responsive electricity ecosystem.
“This development signals a new era for electricity governance in Lagos State,” Mr. Ogunleye added. “We are committed to leveraging this opportunity to deliver superior energy solutions that will power the economic and social growth of our state.”
The establishment of EKEDP SubCo and IE SubCo is expected to streamline electricity distribution and create a more customer-focused approach within Lagos.
The state government is optimistic that the move will attract substantial investments in the sector, improve infrastructure, and ultimately bridge the power supply gap.
As the June 2025 deadline approaches, stakeholders are working collaboratively to ensure a smooth transition that will herald a brighter, more sustainable energy future for Lagos State.