Opposite to widespread stories, Eko Electrical energy Distribution Plc (EKEDC) and Ikeja Electrical Plc (IKEDC) haven’t been phased out with the licensing of two new distribution firms by Lagos State, Nairametrics has realized.
Sources conversant in the event confirmed that the 2 new electrical energy distribution firms licensed by the Lagos State Electrical energy Regulatory Fee (LASERC) are subsidiaries of the present DisCos, not replacements.
Final week, LASERC licensed Excel Distribution Firm Restricted and IE Vitality Lagos Restricted as new distributors for Lagos, sparking hypothesis that the transfer marked the top of EKEDC and IKEDC’s authorized recognition within the state.
Nonetheless, a number of sources clarified that the restructuring aligns with the Electrical energy Act 2023, which empowers state governments to control energy era, transmission, and distribution inside their jurisdictions.
Why new firms have been created
Based on one supply, the creation of the brand new entities is a compliance measure that enables the present DisCos to function underneath Lagos State legal guidelines whereas sustaining their nationwide licences issued by the Nigerian Electrical energy Regulatory Fee (NERC), which is legitimate till 2028.
“This was anticipated underneath the Electrical energy Act. The brand new firms are mainly sub-companies of Ikeja Electrical and Eko DisCo, shaped to work with LASERC underneath Lagos legal guidelines,” the supply mentioned.
One other insider confirmed that administration and employees constructions stay unchanged, describing the transfer as a “identify change” to mirror state-level regulation somewhat than a company overhaul.
Extra insights
The licensing ceremony befell on Thursday, October 2, 2025, on the Radisson Blu Resort, Ikeja, with key stakeholders in attendance, together with LASERC Chairman Engr. Abimbola Odubiyi and Govt Commissioner/CEO Dr. Fouad Animashaun.
- In his remarks, Dr. Animashaun described the event as a milestone in Lagos’ journey towards a dependable and sustainable electrical energy market, reaffirming LASERC’s dedication to transparency, independence, and repair supply.
- Representatives of the newly licensed entities — Folake Soetan for IE Vitality Lagos Restricted and Sheri Adegbenro for Excel Distribution Firm Restricted — each pledged to collaborate with LASERC to boost energy distribution and customer service throughout the state.
- The transfer indicators Lagos’ deeper transition towards state-level regulation underneath the Electrical energy Act 2023, however doesn’t signify an outright takeover or dissolution of the present DisCos. Somewhat, it formalizes the state’s regulatory authority whereas preserving the operational construction of Ikeja Electrical and Eko DisCo.
What it’s best to know
The Electrical energy Act 2023, signed into regulation by President Bola Ahmed Tinubu, marked a key shift in Nigeria’s electrical energy sector by de-monopolizing era, transmission, and distribution on the nationwide stage.
The signing of the Act into regulation follows an earlier constitutional modification signed by former President Muhammadu Buhari in March 2023, which granted states the authority to take part in electrical energy regulation. The 2023 Act offers the authorized framework for states, firms, and people to actively interact in electrical energy provide.
- Underneath the Act, state governments can now license and regulate electrical energy distribution and era inside their jurisdictions, an influence beforehand held solely by the Nigerian Electrical energy Regulatory Fee (NERC) on the federal stage.
- This permits states to problem licences to firms working inside their territories, as Lagos State has carried out by LASERC.
- The Act additionally permits for small-scale electrical energy undertakings with out the necessity for a federal licence: any entity can assemble, personal, or function a producing facility not exceeding 1 megawatt (MW) in mixture at a web site, or a distribution enterprise with a capability not exceeding 100 kilowatts (KW), or different thresholds decided by NERC.
This provision additional expands non-public sector participation and facilitates the expansion of localized electrical energy initiatives.
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