The transition of Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) to the Lagos electricity market is set to be finalised by June 4, 2025, following the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State Electricity Regulatory Commission (LASERC).
Under the new framework, both EKEDP and IE are mandated to establish dedicated subsidiaries—EKEDP SubCo and IE SubCo—exclusively focused on managing electricity supply and distribution within Lagos State. According to detailed guidelines obtained by BusinessDay, these subsidiaries must be incorporated within 60 days from December 5, 2024, and secure operational licences from LASERC.
The transition follows the enactment of the Electricity Act 2023 and recent constitutional amendments empowering states to regulate their respective intrastate electricity markets. This move positions Lagos State to tailor its electricity policies to meet local demands, enhance service delivery, and attract private sector investment for infrastructure and technological advancements.
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, commended NERC for facilitating the transition, emphasising that Lagos is prepared to capitalise on the opportunity to improve electricity services and drive economic growth.
Industry experts have described the shift as a crucial step toward resolving Nigeria’s longstanding electricity challenges. Tolu Adebayo, an energy analyst at Sofidam Capital, noted that decentralising electricity distribution would lead to more efficient and responsive systems tailored to local needs.
“This decentralisation is long overdue,” Adebayo remarked. “By allowing states to control their electricity markets, we can create more efficient and customer-focused systems.”
The transition is expected to bring several benefits, including improved service delivery, quicker response to outages, and enhanced accountability. It also paves the way for increased private sector participation, as LASERC will have the authority to issue licences and oversee operations within the state.
However, the transition presents operational and regulatory challenges. EKEDP and Ikeja Electric will need to navigate the transfer of assets, staff, and technical systems to the newly established subsidiaries. LASERC has pledged to provide necessary support to ensure a seamless transition and prevent service disruptions.
With the June 2025 deadline approaching, stakeholders are closely monitoring EKEDP and Ikeja Electric’s progress. A successful transition could serve as a model for other states, setting the stage for a more decentralised and efficient electricity sector across Nigeria.
For Lagos residents and businesses, the transfer of regulatory control signals a potential turning point for improved electricity services and a more stable power supply.
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