LASG sets conditions for electricity distribution across communities

By Adeola Ogunrinde

The Lagos State Government has introduced new regulations governing electricity distribution, prohibiting individuals and organizations from operating in the sector without formal approval from the Lagos State Electricity Regulatory Commission (LASERC). This move aims to streamline and regulate electricity activities within the state more effectively.

This development follows the issuance of Order No. LASERC ORDER/001/2025 by LASERC, which officially transfers regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to LASERC. This transfer is in accordance with the Electricity Act 2023 and the Lagos State Electricity Law 2024.

Under the new directive, all persons and entities must obtain a valid license or permit from LASERC before engaging in any regulated electricity activities within Lagos State. Licenses issued by other regulatory bodies will no longer be recognized under this regime.

The Order, effective immediately, prohibits any individual or organization from conducting electricity-related operations in Lagos State without LASERC authorization. Violators will face penalties starting at N20 million, with an additional N20,000 fine for each day the violation persists.

Unlicensed operators have been instructed to cease their activities immediately and apply for the appropriate licenses. LASERC has also encouraged entities unsure of their regulatory status to seek official guidance to ensure compliance.

The Order reaffirms the continued applicability of existing national regulatory instruments, including tariff guidelines, grid codes, safety standards, and metering regulations. These remain binding on all electricity licensees operating within Lagos State until further notice or amendment by LASERC.

LASERC’s CEO and Executive Commissioner, Fouad Animashaun, described the Order as a new era for electricity governance in Lagos. He emphasized that the initiative aims to create a safe, efficient, and investor-friendly electricity market that aligns with global standards.

The Commission has assured stakeholders of its commitment to supporting a smooth transition into the new regulatory framework. This effort is part of the Lagos State Government’s broader push for more coordinated, accountable, and reliable electricity distribution across communities.