The Federal Government of Nigeria has officially transferred regulatory oversight of the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission (LASERC), as announced by the Nigerian Electricity Regulatory Commission (NERC).
This significant development aligns with the amended provisions of the Nigerian Constitution and the Electricity Act of 2023, enhancing the regulatory framework for the state’s energy sector.
According to NERC, this transfer follows a comprehensive process that meets the requirements outlined in the Electricity Act 2023, which permits states to manage their own intrastate electricity markets upon notifying NERC and fulfilling necessary conditions. The Act maintains NERC’s role as the central regulator for inter-state and international electricity operations, covering areas such as generation, transmission, supply, trading, and system management.
In a statement, NERC confirmed, “In compliance with the amended Constitution and the Electricity Act 2023, the Commission has issued an order to transfer regulatory oversight of the electricity market in Lagos State from NERC to LASERC.” This shift reflects a growing trend towards decentralization in the Nigerian electricity sector, granting states increased autonomy in managing their local energy markets.
Following the recent signing of the Lagos State Electricity Bill 2024 by Governor Babajide Sanwo-Olu, NERC’s order specifies a series of steps to ensure a seamless transition of responsibilities to LASERC. Key provisions include directives for Eko Electricity Distribution Plc and Ikeja Electric Plc to establish subsidiaries that will handle the intrastate supply and distribution of electricity in Lagos State. Both companies are required to complete their subsidiary incorporations within 60 days and obtain licenses from LASERC.
The commission has mandated that all transitions outlined in this order must be completed by June 4, 2025, marking a new era of electricity regulation in Lagos.
