Lagos Moves to Regulate Electricity Market With New Licensing Order

The Lagos State Electricity Regulatory Commission (LASERC) has issued a landmark directive—Order No. LASERC ORDER/001/2025—which formally establishes the regulatory framework for electricity market operations across the state.

This order, effective immediately, bars any individual or organisation from conducting regulated electricity activities within Lagos without a valid LASERC-issued license or permit.

The move officially concludes the transition of regulatory powers from the Nigerian Electricity Regulatory Commission (NERC) to LASERC, in line with provisions of the Electricity Act 2023 and the Lagos State Electricity Law 2024.

Under the new regulatory regime, holding a license from another body will no longer suffice. The commission made it clear that only LASERC licenses are valid within the state, warning that violators will not be exempt from penalties.

“This Order reinforces LASERC’s mandate to ensure a safe, efficient, and reliable electricity market in Lagos,” said Dr. Fouad Animashaun, CEO/Executive Commissioner of LASERC.
“We are committed to upholding global standards and protecting electricity users and investor interests in the evolving power sector.”

According to the directive, unlicensed operators must immediately cease operations and apply for appropriate licensing from the commission. Non-compliance will attract a minimum fine of ₦20 million, with an additional ₦20,000 charged per day for continued violations.

In cases of uncertainty, entities are advised to seek formal clarification from LASERC regarding their regulatory status.

The order also confirmed that national instruments such as tariff guidelines, grid codes, safety standards, and metering regulations will continue to apply to all licensees in Lagos State—until otherwise amended by the commission.

This step represents a milestone in Lagos State’s quest for energy autonomy and aims to create a transparent, investor-friendly environment in the electricity sector.