The Federal Government, through the Nigerian Electricity Regulatory Commission, has officially transferred regulatory oversight of Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission.
This announcement was made by NERC in a statement on X (formerly Twitter) on Thursday.
This transfer aligns with the provisions of the amended Nigerian Constitution and the Electricity Act (EA) 2023, which empower states to manage their intrastate electricity markets, provided they notify NERC and meet the stipulated requirements.
According to the statement, “The Nigerian Electricity Regulatory Commission (NERC) or the “Commission” has issued an order to transfer regulatory oversight of the Lagos State electricity market from the Commission to the Lagos State Electricity Regulatory Commission in accordance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).”
The primary regulator for interstate and international power operations, including generation, transmission, supply, trading, and system management, will remain in place, NERC explained.
The EA 2023 mandates that states wishing to regulate their local electricity markets formally notify NERC and request the transfer of authority.
According to NERC, “The Government of Lagos State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Lagos State.”
This transfer follows the signing of the Lagos State Electricity Bill 2024 into law by Governor Babajide Sanwo-Olu two weeks ago, further advancing Lagos’s autonomy in energy management.
To ensure a seamless transition, NERC’s order includes specific directives for electricity distribution companies in Lagos.
Eko Electricity Distribution Plc (EKEDP) must incorporate a subsidiary, EKEDP SubCo, to handle intrastate supply and distribution of electricity within 60 days from December 5, 2024. This new entity must apply for and obtain a licence from LASERC.
Ikeja Electric Plc (IE) is also directed to create a subsidiary, IE SubCo, to assume similar responsibilities within the same timeframe and obtain the necessary licensing from LASERC.
NERC specified that these transfers must be fully completed by June 4, 2025.
This shift signifies a major step towards decentralizing regulatory power in Nigeria’s electricity sector, granting states greater control and autonomy over their local energy markets.
