NERC transfers regulatory oversight of Lagos electricity market to LASERC

‘Process to be completed with final adjustments in June 2025’

The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer the regulatory oversight of Lagos State’s electricity market to the Lagos State Electricity Regulatory Commission (LASERC).

The move aligns with the provisions of the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (EA 2023). The transfer is coming two weeks after the state governor, Babajide Sanwo-Olu, signed the Lagos Electricity Bill 2024 into law.

According to the NERC, the Lagos State Government has met all the legal requirements outlined in the EA 2023 and formally requested the transfer of regulatory oversight.

This move positions LASERC as the primary regulator of intrastate electricity operations within Lagos State. The transfer process, including all necessary adjustments, is expected to be completed by June 4, 2025.

As part of the order, NERC has directed the two major electricity distribution companies in Lagos State, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE), to incorporate subsidiaries responsible for intrastate electricity supply and distribution in Lagos State.

In the same vein, the Commission directed IE to incorporate a subsidiary (IE SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from IE.

“IE shall complete the incorporation of IE SubCo within 60 days from 5th December 5, 2024. The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from LASERC, among other directives,” it further stated.