Lagos Assumes Control of Electricity Regulation as NERC Hands Over to LASERC
In a landmark development, the Lagos State Electricity Regulatory Commission (LASERC) has taken over the regulation of the state’s electricity market from the Nigerian Electricity Regulatory Commission (NERC). This shift follows the amended Constitution of the Federal Republic of Nigeria and the provisions of the Electricity Act 2023, empowering states to oversee their intrastate electricity operations.
The transition was formalized after the Lagos State Government met all legal prerequisites and requested NERC to transfer oversight responsibilities. The move is expected to enhance electricity regulation in Lagos by bringing governance closer to the market and its consumers.
As part of the process, NERC has instructed the two electricity distribution companies serving Lagos—Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE)—to restructure their operations. Both companies must establish subsidiaries, EKEDP SubCo and IE SubCo, dedicated solely to intrastate electricity supply and distribution. These entities are required to apply for operating licenses from LASERC and must be incorporated within 60 days, starting December 5, 2024. The entire handover process, including licensing, is slated for completion by June 4, 2025.
“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) has issued an order to transfer regulatory oversight of the electricity market in Lagos State to the Lagos State Electricity Regulatory Commission (LASERC),” NERC said in an official statement.
By assuming direct control of its electricity market, Lagos State aims to address longstanding power challenges, improve service delivery, and ensure greater regulatory responsiveness. LASERC’s localized approach is expected to foster efficient management of electricity supply and distribution, aligning with the state’s unique energy needs.
The amended Electricity Act 2023 marks a pivotal moment in Nigeria’s power sector by granting states the autonomy to manage their electricity markets. This decentralized framework is anticipated to drive innovative and tailored solutions to the nation’s enduring electricity challenges.
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Key Dates in the Transition Process:
- December 5, 2024: Deadline for EKEDP and IE to establish subsidiaries.
- June 4, 2025: Expected completion of the handover and licensing process.
This development underscores Lagos State’s commitment to pioneering advancements in electricity management, setting a precedent for other states across Nigeria.
