NERC transfers electricity oversight to Lagos

The Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of Lagos State’s electricity market to the Lagos State Electricity Regulatory Commission (LASERC).

This move follows the signing of the Lagos Electricity Bill 2024 into law by Lagos State Governor, Babajide Sanwo-Olu, just two weeks ago.

In a statement, NERC confirmed that the Lagos Electricity Bill grants the state autonomy to generate, transmit, and distribute electricity, marking a key step in the implementation of the amended Electricity Act 2023.

Lagos State has fulfilled all legal requirements outlined in the Electricity Act and has formally requested the transfer of regulatory authority from NERC to LASERC. This shift aligns with broader electricity reforms that allow states to establish and regulate their own intrastate electricity markets.

As part of the transition, NERC has mandated the incorporation of new subsidiaries by Eko Electricity Distribution Company (EKEDC) and Ikeja Electric (IE) to manage intrastate electricity supply and distribution exclusively within Lagos State.

These subsidiaries must secure operational licences from LASERC within 60 days, with the full transition scheduled for completion by June 2025.

The move is seen as a significant step in Lagos State’s effort to take control of its electricity market, improve supply reliability, and attract investment into its energy sector. Lagos State now becomes the eighth state approved by NERC to establish and regulate a state-owned electricity market, joining the ranks of Enugu, Ondo, Edo, Imo, Ekiti, Oyo, and Kogi.

This development underscores Lagos State’s commitment to improving its electricity infrastructure and fostering sustainable growth in the energy sector.