Lagos State has officially taken control of its electricity market following the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity Regulatory Commission (LASERC), in a groundbreaking development for Nigeria’s electricity sector.

The formal announcement was made during a landmark event held at NERC’s headquarters in Abuja, attended by Biodun Ogunleye, commissioner for energy and mineral resources of Lagos state.

This historic decision aligns with the Electricity Act 2023 and the amended Constitution of the Federal Republic of Nigeria, which empower states to regulate intrastate electricity markets. With this transfer, Lagos becomes one of the few states in Nigeria to gain full regulatory control of its electricity market, marking a significant milestone in the decentralization of the country’s power sector.

Under this directive, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) are required to establish subsidiaries—EKEDP SubCo and IE SubCo, respectively—to manage electricity supply and distribution exclusively within Lagos State. These subsidiaries must be incorporated within 60 days from December 5, 2024, and must obtain licenses from LASERC. The transition, including all necessary regulatory and operational adjustments, is expected to be completed by June 4, 2025.

Speaking at the event, Ogunleye praised NERC for its visionary leadership in enabling this transition and reaffirmed Lagos State’s readiness to deliver improved electricity services. The Commissioner highlighted the immense opportunities this transfer presents for the state to tailor policies to its unique needs, enhance service delivery, and attract private sector investments to drive innovation and economic growth.

This development signals a new era for electricity governance in Lagos State. With LASERC at the helm, the state government is poised to oversee operations more effectively, ensuring responsive and efficient electricity distribution to meet the demands of Lagosians. (BusinessDay)