Lagos Moves to Take Over Electricity Regulation From NERC, as FG Says Mega Transformers Arriving Soon

Lagos Moves to Take Over Electricity Regulation From NERC, as FG Says Mega Transformers Arriving Soon

  • The Lagos state government is making moves to take over electricity regulations from the Nigeria Electricity Regulation Commission (NERC)
  • The state said it has sent a repeal bill to the state House of Assembly to enable it to achieve this
  • Also, the federal government has announced that mega transformers from Siemens have started arriving in the country

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On Thursday, December 8, 2022, the Lagos government announced that it was finalising measures that would enable it to take over the regulation of the state’s electricity from the Nigerian Electricity Regulatory Commission (NERC).

The state government has sent a repeal of the Lagos State Electricity Law of 2018 to the state’s House of Assembly.

Lagos, NERC, FG
Lagos state governor, Babajide Sanwo-Olu Credit: PIUS UTOMI EKPEI / Contributor
Source: Getty Images

Lagos shakes DisCos with new bill

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The new bill takes regulations of the electricity business away from NERC and domiciles them in the state’s regulatory agency.

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ThisDay report says that Olalere Odusote, the state’s commissioner for energy, stated this at the third Lagos Real Estate Market Place Conference and Exhibition put together by the Lagos State Real Estate Regulatory Authority (LASRERA).

The commissioner said one of the major areas that the state is focused on is ensuring it achieves Sustainable Development Goal 7 which is the provision of sustainable living spaces.

Nigerians have reported that they hardly get justice from NERC when they go for arbitration between them and distribution companies.

According to them, NERC is highly compromised and hardly enforces its own regulation orders.

Federal government brings in mega transformers

The announcement comes as the 63 million mega power transformers ordered by Nigeria after an agreement between the federal government and Siemens are starting to arrive in the country.

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The minister of power, Abubakar Aliyu, announced this on Thursday, December 8, 2022, and said that the transformers were ordered under the Presidential Power Initiative in July this year.

The transformers have been successfully tested at the Siemens Transformer factory in Italy.

The minister also said that the first batch of transformers was expected to arrive in September 2022, according to a Punch report.

NERC issues new conditions for purchase of transformers, meters by electricity consumers

Recall that reported that the National Electricity Regulatory Commission issued a guideline or condition under which consumers can purchase transformers, meters, poles or any asset for Electricity Distribution Companies (DisCos).

The electricity regulator said that when a consumer purchases any electricity asset, they have to sign an agreement with the DisCos stating when and how they would be refunded the cost of the transformer or acquisition bought.

A report stated that NERC's Commissioner for Consumer Affairs, Aisha Mahmud, said this in Abuja at the 3-day NERC/Abuja Electricity Distribution Company Consumer Complaint Resolution Meeting.


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Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner.