The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight of the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission (LASERC).
This decision, outlined in a statement released by NERC, aligns with the amended provisions of the Nigerian Constitution and the Electricity Act of 2023, which empowers states to assume regulatory control over their intrastate electricity markets.
Following the Lagos State Government’s notification and fulfillment of the necessary conditions outlined in the Electricity Act 2023, NERC has issued an order transferring regulatory authority. NERC will continue to serve as the central regulator for inter-state and international electricity operations, including generation, transmission, supply, trading, and system management.
The order directs Eko Electricity Distribution Plc and Ikeja Electric Plc to incorporate subsidiaries within 60 days to assume responsibilities for intrastate supply and distribution of electricity in Lagos State. These subsidiaries will then apply for and obtain licenses from LASERC.
This transfer of regulatory power marks a significant step towards decentralizing the Nigerian electricity sector and empowering states to play a more active role in managing their local energy markets.
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