Contrary to widespread reports, Eko Electricity Distribution Plc (EKEDC) and Ikeja Electric Plc (IKEDC) have not been phased out with the licensing of two new distribution companies by Lagos State, Nairametrics has learned.
Sources familiar with the development confirmed that the two new electricity distribution companies licensed by the Lagos State Electricity Regulatory Commission (LASERC) are subsidiaries of the existing DisCos, not replacements.
Last week, LASERC licensed Excel Distribution Company Limited and IE Energy Lagos Limited as new distributors for Lagos, sparking speculation that the move marked the end of EKEDC and IKEDC’s legal recognition in the state.
However, multiple sources clarified that the restructuring aligns with the Electricity Act 2023, which empowers state governments to regulate power generation, transmission, and distribution within their jurisdictions.
Why new companies were created
According to one source, the creation of the new entities is a compliance measure that allows the existing DisCos to operate under Lagos State laws while maintaining their national licences issued by the Nigerian Electricity Regulatory Commission (NERC), which is valid until 2028.
“This was expected under the Electricity Act. The new companies are basically sub-companies of Ikeja Electric and Eko DisCo, formed to work with LASERC under Lagos laws,” the source said.
Another insider confirmed that management and staff structures remain unchanged, describing the move as a “name change” to reflect state-level regulation rather than a corporate overhaul.
More insights
The licensing ceremony took place on Thursday, October 2, 2025, at the Radisson Blu Hotel, Ikeja, with key stakeholders in attendance, including LASERC Chairman Engr. Abimbola Odubiyi and Executive Commissioner/CEO Dr. Fouad Animashaun.
- In his remarks, Dr. Animashaun described the development as a milestone in Lagos’ journey toward a reliable and sustainable electricity market, reaffirming LASERC’s commitment to transparency, independence, and service delivery.
- Representatives of the newly licensed entities — Folake Soetan for IE Energy Lagos Limited and Sheri Adegbenro for Excel Distribution Company Limited — both pledged to collaborate with LASERC to enhance power distribution and customer service across the state.
- The move signals Lagos’ deeper transition toward state-level regulation under the Electricity Act 2023, but does not represent an outright takeover or dissolution of the existing DisCos. Rather, it formalizes the state’s regulatory authority while preserving the operational structure of Ikeja Electric and Eko DisCo.
What you should know
The Electricity Act 2023, signed into law by President Bola Ahmed Tinubu, marked a key shift in Nigeria’s electricity sector by de-monopolizing generation, transmission, and distribution at the national level.
The signing of the Act into law follows an earlier constitutional amendment signed by former President Muhammadu Buhari in March 2023, which granted states the authority to participate in electricity regulation. The 2023 Act provides the legal framework for states, companies, and individuals to actively engage in electricity supply.
- Under the Act, state governments can now license and regulate electricity distribution and generation within their jurisdictions, a power previously held exclusively by the Nigerian Electricity Regulatory Commission (NERC) at the federal level.
- This enables states to issue licences to companies operating within their territories, as Lagos State has done through LASERC.
- The Act also allows for small-scale electricity undertakings without the need for a federal licence: any entity can construct, own, or operate a generating facility not exceeding 1 megawatt (MW) in aggregate at a site, or a distribution undertaking with a capacity not exceeding 100 kilowatts (KW), or other thresholds determined by NERC.
This provision further expands private sector participation and facilitates the growth of localized electricity initiatives.
