To ensure a coordinated power sector environment, the Lagos State Government has started begun to regulate the electricity market, announcing new conditions guiding sourcing and distribution to homes and corporate organizations across the state.
In the condition, the state government has stopped individuals and organisations aiming to operate within Lagos from doing so without obtaining a formal approval from the state regulatory body established to regulate the electricity market in the state.
This development follows the issuance of Order No. LASERC ORDER/001/2025 by the Lagos State Electricity Regulatory Commission (LASERC), marking the official transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to LASERC, as provided for in the Electricity Act 2023 and Lagos State Electricity Law 2024.
The directive was contained in a statement signed by the agency’s Deputy Director, Public Affairs Unit, Adetola Idowu on Tuesday.
Under the new directive, all persons and entities must obtain a valid licence or permit from LASERC before engaging in any regulated electricity activity within the state.
The Commission stressed that licences from any other regulatory body would not exempt violators under the new regulatory regime.
“The Order, which takes immediate effect, prohibits all individuals and entities from undertaking regulated electricity activities within Lagos State without a valid license or permit issued by LASERC.
“The Commission emphasized that holding a license from any other regulatory body will not exempt violators from liability under the new regulatory regime,” it states.
As part of the enforcement measures, unlicensed operators have been directed to halt operations immediately and apply for the appropriate licensing.
Failure to comply, according to LASERC, will attract penalties starting from N20 million, with an additional N20,000 for each day the violation continues.
To ensure clarity and compliance, the Commission has urged entities uncertain of their regulatory status to seek official guidance.
“The Order also affirms the continued applicability of existing national regulatory instruments — including tariff guidelines, grid codes, safety standards, and metering regulations, as binding on all electricity licensees operating within Lagos State, pending any amendment or further directive from the Commission,” it added.
Speaking on the development, LASERC’s CEO and Executive Commissioner, Fouad Animashaun, said the order signals a new era for electricity governance in Lagos.
He noted that the move is aimed at fostering a safe, efficient, and investor-friendly electricity market that meets global standards.
“This Order reinforces LASERC’s mandate to ensure a safe, efficient, and reliable electricity market in Lagos. We are committed to protecting both electricity users and investors as the power sector continues to evolve,” Animashaun said.
The Commission has also assured stakeholders of its readiness to support operators in transitioning smoothly into the new regulatory framework, as the state government pushes for more coordinated and accountable electricity distribution across communities.
