Regulator Orders Immediate Cessation of Unlicensed Electricity Activities in Lagos

• The Lagos State Energy Regulatory Commission issued Order No. LASERC ORDER/001/2025, marking the official commencement of regulatory control over the state's energy market
• The order mandates that all unlicensed electricity operators cease their activities immediately and obtain a license from LASERC, with penalties for non-compliance
• Additionally, LASERC affirmed the continued applicability of national regulatory instruments and emphasised its commitment to ensuring a safe and efficient electricity market in Lagos

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The legal foundation for the operation of the Lagos State energy market has been established by the Lagos State Energy Regulatory Commission (LASERC) through the official issuance of Order No. LASERC ORDER/001/2025.

As required by the Lagos State Electricity Law 2024 and the Electricity Act 2023, the Nigerian Electricity Regulatory Commission’s regulatory control will officially end with the issuance of this milestone order.

The order, which takes immediate effect, prohibits all individuals and entities from undertaking regulated electricity activities within Lagos State without a valid license or permit issued by LASERC.

The commission emphasised that holding a license from any other regulatory body will not exempt violators from liability under the new regulatory regime.

The order mandates that all unlicensed operators stop their regulated activities immediately and apply to the commission for the proper license. Penalties for violators include fines of at least N20 million, with an additional N20,000 for every day that non-compliance persists.

Once again, organisations that are unsure of their regulatory status are urged to contact the commission for formal confirmation.

The order also affirms the continued applicability of existing national regulatory instruments — including tariff guidelines, grid codes, safety standards, and metering regulations — as binding on all electricity licensees operating within Lagos State, pending any amendments or further directives from the Commission.

“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 investors' interests in the evolving power sector.”

As the first subnational entity in the nation and one of the few in Africa to create a fully regulated, independent electricity market, Lagos State is poised to make history.

The state government is integrating all of its power-related policies into a single, comprehensive electricity policy as part of a reform to modernize its energy ecosystem. This strategy aims to improve energy availability, attract investment, and accelerate growth.

Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, made the announcement during the 2025 Ministerial Press Briefing held in Alausa, Ikeja.

Why Nigeria lacks proper electricity

Legit.ng reported that Tony Elumelu, chairman of Transnational Corporation Plc, urged the federal government to expedite the payment of the nation's over N2 trillion debt to electricity generation firms (Gencos).

Elumelu said this during the corporation's 18th annual general meeting (AGM) in Abuja.

The billionaire disclosed that TransAfam Power, a generating firm owned by Transcorp Power, is owed N250 billion.

Source: Legit.ng