Lagos pushes power reform with new electricity law
By Adeola Ogunrinde
Lagos State has taken a pioneering step in Nigeria’s power sector reform with the passage and implementation of the Lagos State Electricity Law, 2024. The law empowers the state to regulate its own electricity market—covering generation, transmission, distribution, and trading.
Signed by Governor Babajide Sanwo-Olu in December 2024, the legislation establishes key institutions to drive Lagos’ electricity ambitions. These include the Lagos State Electricity Regulatory Commission (LASERC), which will oversee licensing and market regulation; the Lagos State Electrification Agency (LSEA), responsible for expanding access in underserved communities; and the Lagos Independent System Operator (LISO), which will manage grid reliability and operations.
Speaking at the 2025 Annual Ministerial Press Briefing at the Bagauda Kaltho Press Centre, Alausa, the Commissioner for Energy and Mineral Resources, Engr. Biodun Ogunleye, said the law marks a major turning point in Lagos’ power supply history and aligns with the Governor’s vision of a reliable, affordable, and sustainable electricity sector.
“This bold step not only decentralizes power in Nigeria but also positions Lagos as a leader in sustainable energy policy and delivery. With our own regulatory and operational electricity market, we can ensure energy sufficiency, reduce losses, and improve the quality of life for millions of residents,” Ogunleye said.
He noted that LASERC has already begun engaging key stakeholders to license new market participants, including independent power producers (IPPs) and distribution companies (DisCos), under Lagos’ own regulatory framework. This move is expected to boost competition, attract investment, and speed up electrification.
The Commissioner also announced plans to establish the Lagos Electricity Market (LEM), a structured ecosystem to support embedded generation, smart grid deployment, and consumer protection through data-driven oversight.
In addition, the Ministry has begun work on a Lagos Integrated Resource Plan (IRP) to provide a long-term roadmap for energy access and infrastructure development. Eight new interconnected mini-grids are currently being deployed across underserved communities, with more in the pipeline under a phased rollout strategy.
Looking ahead, Ogunleye said the Ministry is exploring partnerships for local manufacturing of electricity infrastructure—such as transformers, meters, cables, and switchgears—to boost job creation and reduce import dependence.
He reiterated Lagos State’s willingness to collaborate with the Federal Government and other sub-national governments to ensure a just and coordinated energy transition that benefits all Nigerians.
