The Lagos State Electricity Regulatory Commission (LASERC) has unveiled a decentralised electricity market framework hoped to reduce Lagos State’s dependence on Nigeria’s national grid and accelerate the development of an independent power ecosystem.
The initiative was presented during the Commission’s maiden Stakeholders’ Engagement Forum, where LASERC outlined a regulatory roadmap focused on building a self-sustaining electricity market driven by local generation, distribution reforms, and digital infrastructure.
A major component of the framework is the establishment of the Lagos Independent System Operator (LAISO) that will oversee the state’s grid operations, trade point metering, and bulk electricity measurement systems.
According to the Commission, LAISO is expected to support data-driven accountability and improve operational coordination across Lagos’ electricity value chain.
LASERC says Lagos currently requires an estimated 12,000 megawatts of electricity to meet industrial and residential demand but receives less than 1,000 megawatts from the national grid.
To address the supply gap, the Commission is leveraging powers granted under the Lagos State Electricity Law 2024, which authorises the state to regulate electricity generation, transmission, and distribution within its jurisdiction independently of the Nigerian Electricity Regulatory Commission (NERC).
In December 2024, NERC formally transferred oversight of Lagos State’s intrastate electricity market to LASERC, granting the Commission authority over licensing, tariffs, market operations, and consumer protection within the state.
Under its implementation roadmap, LASERC plans to digitise electricity service delivery and expand infrastructure across Lagos through several new initiatives.
The Commission says pilot specialised districts with 24-hour electricity supply are scheduled for rollout from October 2026.
LASERC also announced plans to commence a 100% grid and customer metering programme by July 2026 as part of efforts to eliminate estimated billing and improve service transparency.
Additional measures include the expansion of technical support and complaint resolution services, as well as the establishment of three new zonal offices in Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe by the third quarter of 2026.
The Commission also plans to introduce new operational protocols governing interactions between state-licensed electricity providers and federal electricity infrastructure.
Temitope George, Chief Executive Officer and Executive Member of LASERC, describes the stakeholder engagement as a significant step in the development of Lagos State’s electricity market.
“This engagement,” George says, “marks the beginning of a new regulatory era focused on building a functional, efficient, innovative, and consumer-centred electricity market capable of supporting Lagos State’s growing economic ambitions.”
During the event, Alexander Ogunbiyi, Chairman of the Board, presented 14 licences and permits to operators that met regulatory requirements and industry standards.
The licensed operators include Axxela Limited, Daybreak, and Enaro Energy, which are expected to contribute additional generation capacity through mini-grids and independent power projects.
George says continued progress in the electricity sector will depend on stakeholder collaboration and sustained regulatory engagement.
Technical presentations at the forum were delivered by Olakunle Falola, Adekunle Olopade, and Adetunji Adesanya.
The presentations focused on LASERC’s regulatory agenda, market performance, retail service code, operational standards, and strategic initiatives for strengthening Lagos State’s electricity ecosystem.
According to the Commission, the initiatives are designed to improve operational efficiency, strengthen safety standards, enhance consumer protection, and drive service quality improvements across the electricity market.
The Lagos State Electricity Law 2024 established LASERC as the regulator of the state electricity market, with oversight responsibilities covering tariffs, licensing, market rules, and system performance.
The legislation was introduced to align Lagos State with the provisions of the Electricity Act 2023 and support the transition toward a more competitive and decentralised electricity market structure.
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