The Federal Government has officially transferred the regulation of Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC).
The Nigerian Electricity Regulatory Commission (NERC) announced this development on Thursday via X (formerly Twitter), citing compliance with the amended Nigerian Constitution and the Electricity Act of 2023. This legislation empowers states to assume control over intrastate electricity markets once specific conditions are met.
The Lagos State Government, having fulfilled the necessary requirements, notified NERC of its intention to take over regulatory oversight. As a result, LASERC will now oversee electricity supply and distribution within Lagos, while NERC continues its role as the central regulator for interstate and international electricity operations, including generation, transmission, and trading.
In a statement, NERC explained, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Lagos State from the commission to the Lagos State Electricity Regulatory Commission.”
The move follows the recent signing of the Lagos State Electricity Bill 2024 into law by Governor Babajide Sanwo-Olu, which solidified the state’s readiness to manage its intrastate electricity sector.
As part of the transition, electricity distribution companies operating in Lagos are required to create subsidiaries that will focus solely on intrastate supply and distribution, obtaining licences from LASERC to operate under the new framework. The entire process is expected to be completed by June 4, 2025.