NERC transfers regulatory oversight of Lagos electricity market to state government

The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Lagos from the commission to the Lagos State Electricity Regulatory Commission (LASERC).

In a statement on Thursday, NERC said the transfer is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), which allows states to regulate their electricity markets.

According to the statement, Lagos complied with the conditions set out in the laws, formally notified NERC, and requested the transfer, which is expected to be completed by June 4, 2025.

In the issued transfer order, NERC directed Eko Electricity Distribution Company Plc (EKEDC) to incorporate a subsidiary (EKEDC SubCo) to take over responsibilities for intrastate supply and distribution of electricity in Lagos state from EKEDP.

“EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from 5th December 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives,” the notice reads.

“Direct Ikeja Electric Plc (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 2024.

“The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.”

The commission had previously transferred regulatory oversight of the power market to Oyo, Imo, Edo, Ondo, Enugu, and Ekiti earlier this year.

The latest transfer was on August 21, when the commission issued an order transferring regulatory oversight of the electricity market in Kogi to the state’s electricity regulatory commission (KSERC).