In a transformative move for Nigeria’s power sector, Lagos State has officially assumed full regulatory control of its electricity market following the formal transfer of oversight duties from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity Regulatory Commission (LASERC).
The historic announcement was made during a ceremonial handover held at NERC’s headquarters in Abuja, attended by top officials including the Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye.
The shift in regulatory authority is in line with the provisions of the Electricity Act 2023 and the amended 1999 Constitution, which empower state governments to regulate electricity generation, transmission, and distribution within their jurisdictions. With this development, Lagos joins a pioneering group of states leading the decentralization of Nigeria’s power sector—a move widely regarded as a major step toward improving electricity access and service delivery across the country.
As part of the new framework, NERC has directed Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) to create special-purpose subsidiaries—EKEDP SubCo and IE SubCo—to operate exclusively within Lagos State. These subsidiaries must be incorporated within 60 days from December 5, 2024, and are mandated to secure operational licenses from LASERC. The full regulatory and operational transition is expected to be concluded by June 4, 2025.
Speaking at the ceremony, Commissioner Ogunleye commended NERC for its foresight and collaboration in enabling the transfer, describing the development as a bold and progressive step toward energy reform. He reiterated the Lagos State Government’s commitment to leveraging this new authority to deliver more efficient, tailored electricity services that meet the needs of residents and businesses alike.
“This milestone presents an unprecedented opportunity for Lagos to customize its electricity regulatory environment, attract investments, and foster innovation,” Ogunleye said. “With LASERC now fully empowered, we are set to transform power delivery in a way that drives inclusive economic growth and enhances the quality of life for our people.”
Energy experts have hailed the transition as a game-changer that could serve as a blueprint for other states seeking to gain autonomy over their power systems. Analysts say Lagos is well-positioned to implement forward-thinking energy policies and attract private sector participation to bolster its energy infrastructure.
With LASERC at the helm, stakeholders anticipate a more responsive, efficient, and investor-friendly electricity ecosystem that aligns with Lagos State’s developmental aspirations and its status as Nigeria’s commercial and industrial hub.
