*The Nigerian Electricity Regulatory Commission explains how the Lagos State Government qualified for the oversight function, directing Ikeja Electric and Eko DisCo to create subsidiaries towards improving power service delivery in the state’s electricity market

Isola Moses | 绿帽献妻

As the cosmopolitan state gains management and distribution control over its power market, the Nigerian Electricity Regulatory Commission (NERC) has granted the electricity regulatory oversight to the Lagos State Electricity Regulatory Commission (LASERC).

NERC, in a statement issued Thursday, December 20, 2024, announced the formal transfer of the power of regulation and oversight of the electricity market in cosmopolitan Lagos to the newly-established LASERC to manage power distribution and supply to to homes, businesses and organisations in the state.

Governor Babajide Sanwo-Olu of Lagos State signed the Lagos Electricity Bill 2024 into law.

President Bola Ahmed Tinubu had signed the Electricity Act 2023 into law.

The new Act decentralises the hitherto centralised power sector by giving states and other constituents the autonomy to generate, transmit, and distribute electricity to consumers.

Lagos State has become the 8th state the NERC approved to establish and regulate a state-owned electricity market, joining the ranks of Enugu, Ondo, Edo, Imo, Ekiti, Oyo, and Kogi.

It was gathered the said states have, therefore, advanced the approval from the NERC to establish and operate state-owned electricity markets.

Meanwhile, the country’s power regulatory Commission also has directed the two main electricity Distribution Companies (DisCos) in the state -Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDC) to create subsidiaries in the Lagos electricity market to improve power service delivery in the state.

How Lagos qualified for power regulatory oversight, by NERC

NERC further disclosed that in line with the provision of the Electricity Act, the Lagos State Government has complied with the conditions precedent in the laws.

The power regulatory Commission said the state had duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Lagos State.

NERC also affirmed the move agrees to the country’s constitutional reforms, which empower states to establish and regulate their own intrastate electricity market.

The Commission equally issued an order mandating the incorporation of new subsidiaries by Ikeja Electric and Eko DisCo to further manage intrastate electricity supply and distribution exclusively within Lagos State.

It stated the DisCos’ subsidiaries must secure operational licences from LASERC within 60 days, with the full transition set for completion by June 2025.

The regulator’s approval for the state’s power management oversight is said to have underscored Lagos State鈥檚 determination to take charge of its electricity market, improve supply reliability, and attract investment into its energy sector.

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