Korede Abdullah in Lagos
Lagos State has made history by taking 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).
This groundbreaking development is a significant milestone in the decentralization of Nigeria’s power sector.
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, praised NERC for its visionary leadership, saying it has enabled the state to deliver improved electricity services.
With this transfer, Lagos becomes one of the few states in Nigeria to gain full regulatory control of its electricity market. The state is now empowered to regulate intrastate electricity markets, thanks to the Electricity Act 2023 and the amended Constitution of the Federal Republic of Nigeria.
As a result, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) must establish subsidiaries to manage electricity supply and distribution exclusively within Lagos State. These subsidiaries must be incorporated within 60 days and obtain licenses from LASERC.
This development signals a new era for electricity governance in Lagos State, with LASERC poised to oversee operations more effectively.
This Ogunleye highlighted the immense opportunities this transfer presents, including tailoring policies to the state’s unique needs, enhancing service delivery, and attracting private sector investments to drive innovation and economic growth. The transition is expected to be completed by June 4, 2025.
