The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight of Lagos State’s electricity market to the Lagos State Electricity Regulatory Commission (LASERC), in line with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
This development was disclosed in a statement issued by NERC on Tuesday.
The Commission explained that it will retain regulatory oversight over inter-state and international generation, transmission, supply, trading, and system operations as mandated by the amended Electricity Act.
According to NERC, the Electricity Act 2023 requires states wishing to establish and regulate their intrastate electricity markets to formally notify the Commission and request the transfer of regulatory authority to their respective state regulators.
Providing details on the process, NERC noted that the Lagos State Government complied with the stipulated legal requirements and requested the transfer of authority over its intrastate electricity market.
“Following due notification and compliance with the conditions precedent, the Nigerian Electricity Regulatory Commission issued an order approving the transfer of regulatory oversight to LASERC,” NERC read.
The transfer order includes key directives for the state’s electricity distributors:
- Eko Electricity Distribution Company (EKEDC) must incorporate a subsidiary, EKEDC SubCo, to oversee intrastate electricity supply and distribution in Lagos State.
- Similarly, Ikeja Electric (IE) must create a subsidiary, IE SubCo, for the same purpose within the same timeframe.
Both subsidiaries are required to obtain licenses for intrastate electricity supply and distribution from LASERC and comply with additional directives set by the Commission.
The incorporation process must be completed within 60 days from December 5, 2024.
“All transfers outlined in this order must be completed by June 4, 2025,” NERC added.
NERC emphasized that these changes align with efforts to decentralize Nigeria’s electricity regulation, empowering states to independently manage their power sectors while ensuring alignment with national energy goals.
This move positions Lagos State as a pioneer in implementing the provisions of the Electricity Act 2023, which advocates state-level autonomy in electricity market regulation.
The transfer is expected to enhance efficiency and innovation in Lagos State’s electricity market while setting a precedent for other states.
