Major Shake-up in Lagos Power Sector as New Distribution Companies Take Over
Lagos State has initiated a historic transformation of its electricity sector by licensing two new distribution companies, effectively replacing the long-standing operators Ikeja Electric (IE) and Eko Electricity Distribution Company (EKEDC).
The Lagos State Electricity Regulatory Commission (LASERC) has granted distribution licenses to Excel Distribution Company Limited and IE Energy Lagos Limited, marking a significant shift in the state’s power distribution landscape. Excel Distribution Company will assume the operations previously managed by Eko Disco, while IE Energy Lagos Limited takes over from Ikeja Electric.
The official handover ceremony, conducted in Lagos on Thursday, saw Folake Soetan signing for IE Energy Lagos Limited and Sheri Adegbenro representing Excel Electricity Distribution Limited. The event drew prominent industry stakeholders, including LASERC Commissioners.
LASERC Chairman Engineer Abimbola Odubiyi characterized the transition as “a defining moment in Lagos’ journey towards a reliable and sustainable electricity market.” He acknowledged the support of key officials, including Governor Babajide Sanwo-Olu, Speaker Mudashiru Obasa, and Energy Commissioner Biodun Ogunleye.
Dr. Fouad Animashaun, LASERC’s Executive Commissioner/CEO, emphasized that this move aims to enhance private sector participation and competition 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 stated.
The new licensees have expressed commitment to service improvement. Kola Adeshina of IE Energy Lagos promised innovative solutions, while Sheri Adegbenro of Excel Distribution Company pledged to strengthen distribution networks.
This development aligns with Nigeria’s broader power sector decentralization efforts, allowing states to manage their electricity generation and distribution. The change comes as the sector sees other developments, including Ikeja Electric’s recent price adjustments for prepaid meters. As of August 2025, single-phase meter prices decreased by N1,259 to N138,982.34, representing a 0.9% reduction from January’s price of N140,240.91.
For Lagos residents who have long endured power supply challenges, this restructuring represents potential improvements in service delivery and efficiency through market competition.
