LAGOS GOVT HIGHLIGHTS NEW ROLE IN ELECTRICITY REGULATORY FUNCTIONS
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In a groundbreaking development for Nigeria’s electricity sector, 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). The formal announcement was made during a landmark event held recently at NERC’s headquarters in Abuja, attended by the Honourable Commissioner for Energy and Mineral Resources in Lagos State, Mr. Biodun Ogunleye.
This historic decision aligns with the Electricity Act 2023 and the amended Constitution of the Federal Republic of Nigeria, which empowers 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.
In line with the transfer of oversight, 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, the Honourable Commissioner 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 the 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.
The 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 its residents and businesses.
The transfer of regulatory oversight to LASERC is expected to unlock significant opportunities for private investment, foster innovation, and stimulate economic growth in Lagos State. By enabling localized management through the state-specific subsidiaries of EKEDP and IE, operational efficiency and consumer satisfaction are anticipated to reach new heights.
Lagos leads the way in this transformative shift, with several other states, including Enugu, Kogi, Ondo, Ekiti, Oyo, and Imo, also exploring similar regulatory transitions. This groundbreaking initiative positions Lagos as a trailblazer in Nigeria’s journey toward decentralized and efficient electricity management.
The Lagos State Government and LASERC remain committed to leveraging this opportunity to ensure sustainable development and provide reliable electricity for all residents of the State.
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