Lagos State Government has inaugurated the leadership of the Lagos State Independent System Operator (LAISO), a strategic institution established to ensure the efficient, reliable, transparent and secure operation of the Lagos Electricity Market.

The development was disclosed by the Lagos State Ministry of Energy and Mineral Resources in a statement announcing the constitution of the Governing Board and Management Team of LAISO, a key institution created under the Lagos State Electricity Law (LSEL) 2024.

The move marks another milestone in the implementation of Lagos’ electricity sector reforms following the signing of the Lagos Electricity Bill 2024 into law by Governor Babajide Sanwo-Olu in December 2024.

The law, which seeks to drive a more independent and efficient electricity market in the state, was described by the government as a pivotal step towards achieving round-the-clock electricity supply across Lagos.

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What they are saying

According to the state government, LAISO will play a central role in maintaining the reliability of electricity supply across Lagos through the operation of the state grid, wholesale electricity markets and other critical market functions required for the effective operation of the Lagos Electricity Market.

  • To lead the institution, the government constituted a Governing Board chaired by former Lagos Commissioner for Energy and Mineral Resources, Biodun Ogunleye, while Prof. Lanre Fagbohun was appointed Vice Chairman. Other members include Abayomi Oluyomi, Ibilola Kasunmu, Muktaar Tijani and Oladimeji-Yisa Taiwo, who will also serve as Managing Director of the organisation.

The government said the board would provide strategic direction, policy oversight and corporate governance leadership for LAISO, leveraging members’ expertise in engineering, electricity systems, finance, law, regulation, risk management and executive leadership to guide the successful operation of the institution.

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As part of its governance framework, LAISO is expected to establish a Member Sector Group Committee comprising licensed users of the Lagos electricity grid and registered market participants. The committee will serve as a stakeholder engagement platform bringing together generation companies, distribution companies, embedded generation operators, distributed energy resource providers, grid-connected customers and other participants within the electricity market.

  • The government also disclosed that the Management Team would oversee the day-to-day administration and operation of LAISO, including system operations, market administration, grid coordination, market settlements and compliance with technical, commercial and regulatory requirements.

The management team comprises Oladimeji-Yisa Taiwo as Managing Director, Adetunji Bashiru Adesanya as System Operator and Bunmi Benson as Market Operator.

According to the statement, Taiwo brings more than 30 years of experience in financial systems regulation, public policy and corporate leadership, including service at the Central Bank of Nigeria. Adesanya has over 35 years of experience in transmission operations, grid management and network planning, while Benson possesses extensive expertise in energy regulation, market governance and commercial transactions.

The government described the constitution of the board and management team as a major milestone in the implementation of the Lagos State Electricity Market, adding that it reinforces the state’s commitment to building a reliable, competitive, transparent and investor-friendly electricity sector capable of attracting investment and supporting economic growth.

What you should know

The current wave of electricity reforms at the state level followed the enactment of the Electricity Act signed by President Bola Tinubu in June 2023. The legislation created the legal framework that empowers states to make laws regulating electricity generation, transmission, distribution and supply within their jurisdictions.

Since then, Lagos has joined a growing number of states, alongside the Federal Capital Territory, that have transitioned towards regulating their own electricity markets, according to updates from the Nigerian Electricity Regulatory Commission (NERC).

The signing of the Lagos Electricity Law in December 2024 has already triggered significant implementation efforts and increased private-sector participation in the state’s power sector.

In addition, the state government has signed Power Purchase Agreements (PPAs) and concession arrangements with three Independent Power Producers (IPPs) aimed at expanding electricity generation capacity to between 200 megawatts and 400 megawatts in the coming years.