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 a public notice issued on Thursday via its verified X handle, NERC said the transfer is “in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).”
According to the announcement, major electricity distribution companies in Lagos must establish subsidiary companies.
Specifically, the NERC has ordered Eko Electricity Distribution Plc (EKEDP) to “incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State.” Similarly, Ikeja Electric Plc (IE) must “incorporate a subsidiary (IE SubCo)” for the same purpose.
Both companies, according to NERC must complete their subsidiary incorporation “within 60 days from 5th December 2024,” with the new entities required to “apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC.”
NERC explained that while states can now regulate their internal electricity markets, the Commission “retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.”
The transfer follows Lagos State Government’s compliance with legal requirements. As stated in the announcement, “The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
“All transfers envisaged by this order shall be completed by 4th June 2025,” the Commission stated.
This development marks the first implementation of the Electricity Act 2023’s provisions allowing states to establish and regulate their electricity markets after meeting specified conditions.
Lagos, Nigeria’s commercial capital, becomes the first state to achieve this transition under the new electricity laws.
