…Says new law to revamp power supply, attract investment, improve reliability
LAGOS, Nigeria – Lagos State has taken a pioneering step in Nigeria’s electricity reform landscape with the passage and implementation of the Lagos State Electricity Law, 2024, empowering the State to regulate its own electricity market, spanning generation, transmission, distribution, and trading of electricity.
The landmark legislation, signed into law by Governor Babajide Sanwo-Olu in December 2024, establishes critical institutions that will drive the State’s power ambitions. These include the Lagos State Electricity Regulatory Commission (LASERC), which will oversee licensing and market regulation; the Lagos State Electrification Agency (LSEA), tasked with expanding access to underserved communities; and the Lagos Independent System Operator (LISO), which will coordinate grid reliability and operations.Addressing journalists at the 2025 Annual Ministerial Press Briefing held at the Bagauda Kaltho Press Centre, Alausa, Commissioner for Energy and Mineral Resources, Engr. Biodun Ogunleye, said the law represents a turning point in Lagos’ power supply history and aligns with Governor Sanwo-Olu’s vision of a reliable, affordable, and sustainable electricity sector.
“This bold step not only decentralizes power in Nigeria but positions Lagos as a leader in sustainable energy policy and delivery. The establishment of our own regulatory and operational electricity market will ensure energy sufficiency, reduce losses, and ultimately improve the quality of life for millions of residents,” Ogunleye said.
He noted that LASERC has already commenced engagements with key stakeholders to license new market participants, including independent power producers (IPPs) and distribution companies (DisCos), which will operate under Lagos’ own regulatory framework. This development will help increase competition, attract private investment, and accelerate electrification.
As part of the implementation of the new law, the Commissioner also revealed plans to establish the Lagos Electricity Market (LEM), a coordinated ecosystem that will support embedded generation, smart grid deployment, and consumer protection through data-driven oversight.
“The LEM will be powered by digital tools to monitor power generation and usage in real-time. We will ensure transparency, promote investor confidence, and protect end-users,” Ogunleye added.
He disclosed that the Ministry has commenced work on the Lagos Integrated Resource Plan (IRP) to provide a long-term roadmap for energy access and infrastructure development across sectors. In addition, eight new interconnected mini-grids are currently being deployed across underserved communities, with several others in the pipeline under a phased rollout strategy.
Looking ahead, the Commissioner affirmed that the Ministry is exploring local manufacturing of electricity infrastructure such as transformers, meters, cables, and switchgears, through partnerships with private sector players, to drive job creation and reduce import dependence.
Ogunleye also reiterated the State’s readiness to collaborate with the Federal Government and other sub-nationals to ensure a just and coordinated energy transition that benefits all Nigerians.
With these bold initiatives, Lagos is well on its way to becoming the first sub-national in Nigeria, and one of the few in Africa, with a fully regulated and independent electricity market, delivering stable, scalable, and sustainable power for development.
