…Improved capacity to address state’s energy needs seen
The full transition of Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) to the Lagos electricity market is expected to be completed in June this year.
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).
As part of this transition, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) are expected to establish new subsidiaries—EKEDP SubCo and IE SubCo—dedicated exclusively to managing electricity supply and distribution within Lagos State.
“These subsidiaries must be incorporated within 60 days from December 5, 2024, and must obtain operational licenses from LASERC,” according to detailed guidelines seen by BusinessDay.
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“The full transition, including all regulatory and operational adjustments, is mandated to be completed by June 4, 2025.”
The shift is in alignment with the Electricity Act 2023 and recent constitutional amendments that empower states to regulate their respective intrastate electricity markets.
This development enhances Lagos State’s ability to tailor electricity policies to meet local demands, improve service delivery, and attract private sector investments for infrastructure and technological innovations.
The move is aimed at decentralising electricity distribution and enabling more localised, efficient, and customer-focused services.
Experts say with the creation of state- specific subsidiaries, EKEDP and Ikeja Electric will be better positioned to address the unique energy needs of Lagos, Nigeria’s commercial hub and most populous state.
Speaking at the event, Biodun Ogunleye, commissioner for energy and mineral resources at Lagos state, praised the NERC for its leadership in facilitating the transition.
He emphasised the state’s readiness to leverage this opportunity to improve electricity services and drive economic growth.
Implications for power sector
The transition to state-level regulation is expected to bring several benefits, including improved service delivery, faster response times to outages, and enhanced accountability. It also opens the door for increased private sector participation, as LASERC will have the authority to issue licenses and oversee operations within the state.
Industry experts have hailed the move as a significant step toward addressing Nigeria’s longstanding electricity challenges.
“This decentralisation is long overdue,” Tolu Adebayo, an energy analyst with Sofidam Capital, said.
He added, “By allowing states to take control of their electricity markets, we can create more efficient and responsive systems that cater to local needs.”
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Next step
While the transition presents immense opportunities, it also comes with challenges. EKEDP and Ikeja Electric will need to navigate complex operational and regulatory adjustments, including the transfer of assets, staff, and technical systems to the new subsidiaries.
Additionally, LASERC will need to establish robust oversight mechanisms to ensure a smooth transition and prevent service disruptions.
LASERC has assured stakeholders of its commitment to providing the necessary support throughout the process.
As the June 2025 deadline approaches, all eyes will be on EKEDP and Ikeja Electric to deliver on this ambitious plan. The successful implementation of this transition could serve as a model for other states, paving the way for a more decentralised and efficient electricity sector across Nigeria.
For Lagos residents and businesses, the transfer of regulatory oversight represents a beacon of hope for improved electricity services and a brighter future. With LASERC at the helm, the state is poised to lead the way in transforming Nigeria’s power sector.
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