Introduction

Following the 2023 amendment of the Constitution of the Federal Republic of Nigeria 1999 and the enactment of the Electricity Act 2023 (the “Act”) which provides the framework for the decentralization of regulation within the Power Sector, some States—including Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and more recently, Kogi—have enacted their own electricity laws, established State regulatory bodies, and fulfilled the notification requirements under Section 230(2) of the Electricity Act, marking the transition to State-level regulation.

Lagos State has long been at the forefront of developing a robust framework for Power Sector regulation at State-level, notably demonstrated by its publication of the Lagos State Electricity Policy 2021, which outlined the key requirements for establishing a viable Lagos Electricity Market (“LEM”). Leveraging the recent development within the Power Sector, the Lagos State Electricity Bill 2024 (the “Bill”) has been introduced, seeking to repeal the Lagos State Electric Power Sector Reform Law 2018 and to establish the LEM. This article examines the Bill in the context of the Electricity Act 2023, the Lagos State Electricity Policy 2021, and the Lagos State Electric Power Sector Reform Law 2018.

Highlights of the Lagos State Electricity Bill 2024

1. Repeal of the Lagos State Electricity Power Sector Law: the Bill repeals the Lagos State Electricity Power Sector Law 2018 to provide the necessary legal framework for the establishment and regulation of the LEM.
2. Establishment of the Lagos State Electricity Regulatory Commission: The Lagos State Electricity Policy 2021 had identified the need for an “autonomous credible regulator” to, amongst other things, oversee licensing of market participants, ensure the safety and reliability of electricity, and collaborate with the State Independent System Operator on market surveillance and monitoring. Towards aligning with Section 230(2)(b) of the Electricity Act, Section 5(1) of the Bill seeks to establish the Lagos State Electricity Regulatory Commission (the “Commission”) with powers including but not limited to the above. Section 21 of the Bill also seeks to empower the Commission to make regulations and issue guidelines and orders for the effective implementation of the Bill (upon enactment to Law).