The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Lagos State’s electricity market to the Lagos State Electricity Regulatory Commission (LASERC). This decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023, empowering states to regulate intrastate electricity markets.
Lagos joins Enugu, Ekiti, Ondo, Imo, Oyo, Kogi, and Edo in achieving regulatory autonomy. These states have established their regulatory agencies to oversee electricity markets within their jurisdictions. NERC retains oversight of interstate and international electricity operations, including generation, transmission, supply, and system operations.
Lagos State met the conditions required by law, formally notifying NERC and requesting the transfer. The process is set for completion by June 4, 2025. As part of the transition, Ikeja Electric (IE) and Eko Electricity Distribution Company (EKEDC) must establish subsidiaries (SubCos) to manage intrastate electricity supply and distribution. These subsidiaries must be incorporated within 60 days from December 5, 2024, and obtain licenses from LASERC.
NERC has also directed IE to demarcate its distribution zone by identifying geographic boundaries and installing boundary meters at border points where its network crosses into other states.
This regulatory shift aims to decentralize electricity management, enabling states to address local challenges and improve service delivery. It reflects a broader reform effort in Nigeria’s power sector, fostering tailored solutions and accountability at the state level while maintaining NERC’s central regulatory role for national operations.
Sources
