Lagos Power Sector: Ikeja Electric, Eko Disco Lose Ground as Two New Firms Take Over
- Lagos State has licensed two distribution companies to replace Ikeja Electric (IE) and Eko Distribution Company (EKDC)
- The new regulatory body, Lagos State Electricity Regulatory Commission (LASERC) issued the two distribution licences
- Experts say the development is historic as it replaces the two most dominant players in the state’s electricity sector
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Lagos State Government has officially licensed two new electricity distribution companies, signalling the end of an era for long-time players Ikeja Electric (IE) and Eko Electricity Distribution Company (EKEDC).
In a bold move to deepen competition and improve service delivery, the Lagos State Electricity Regulatory Commission (LASERC) has issued new distribution licences to Excel Distribution Company Limited and IE Energy Lagos Limited.
Source: Getty Images
Old giants out, new rivals in
This development marks a historic turning point in the implementation of the Lagos State Electricity Policy, aimed at creating a more reliable, competitive, and transparent electricity market for Africa’s largest city.
With the new licences, Eko Electricity Distribution Plc and Ikeja Electric Plc have officially ceased to exist as distribution licensees within the Lagos Electricity Market.
In their place, Excel Distribution Company Limited now takes over from Eko Disco, while IE Energy Lagos Limited replaces Ikeja Electric.
The official licence presentation ceremony, held in Lagos on Thursday, drew major industry stakeholders, including LASERC Commissioners and representatives of the new companies.
At the event, Folake Soetan signed on behalf of IE Energy Lagos Limited, while Sheri Adegbenro represented Excel Electricity Distribution Limited, symbolising the official transfer of power operations.
“A defining moment” — LASERC Chairman
Speaking during the ceremony, Engr. Abimbola Odubiyi, Chairman of LASERC, described the development as “a defining moment in Lagos’ journey towards a reliable and sustainable electricity market.”
He reaffirmed the Commission’s commitment to independence, transparency, and service to the people of Lagos.
Odubiyi expressed gratitude to key state officials who championed the creation of LASERC, including Governor Babajide Sanwo-Olu, the Lagos State House of Assembly led by Speaker Mudashiru Obasa, and Commissioner for Energy and Mineral Resources, Mr Biodun Ogunleye.
Private sector to drive new power era
Also speaking, Dr Fouad Animashaun, LASERC’s Executive Commissioner/CEO, emphasised that the issuance of the new licences reflects the state’s determination to deepen private sector participation in the electricity market.
“By expanding competition, we are ensuring that Lagosians can look forward to better access, improved reliability, and more affordable power supply,” he said.
This aligns with the broader goal of decentralising Nigeria’s power sector and allowing states to take control of electricity generation and distribution within their borders — a policy shift enabled by recent constitutional reforms.
New licensees promise innovation and better service
In their remarks, representatives of the new companies pledged to deliver innovation and improved service to consumers.
Kola Adeshina of IE Energy Lagos said, “We are honoured to be part of this transformative journey. Our focus will be on deploying innovative solutions that deliver value to customers across Lagos.”
Similarly, Sheri Adegbenro of Excel Distribution Company expressed commitment to working closely with LASERC to strengthen distribution networks and ensure that customers “experience real improvements in service.”
A new dawn for Lagos electricity consumers
The entry of Excel Distribution Company and IE Energy Lagos marks a new dawn in Lagos’s electricity landscape, promising competition-driven service delivery, innovation, and potentially lower tariffs.
For millions of Lagosians long frustrated by blackouts and billing inefficiencies, this power shake-up could be the jolt the state’s energy sector desperately needs.
A new dawn in Nigeria?
The development is part of a broader strategy of decentralising electricity regulation in Nigeria.
Source: Getty Images
Recall that the Nigerian Electricity Regulatory Commission (NERC) began allowing state governments to regulate their own electricity, leading to the emergence of several state-owned regulatory bodies.
One of the state electricity regulatory bodies in Enugu slashed tariffs, leading to a power challenge in the state.
Ikeja Electric releases new prepaid prices
Legit.ng reported that Ikeja Electric has reduced prices for prepaid meters, with updates to both single-phase and three-phase meters.
These changes were published on the company’s official X account on Friday, August 8, 2025.
According to the updated list, the price of a single-phase meter has dropped by N1,259, from N140,240.91 in January 2025 to N138,982.34 in August 2025, a reduction of 0.9%.
Source: Legit.ng
