Lagos State has licensed two new power distribution companies, Excel Distribution Company Limited and IE Energy Lagos Limited, marking a major shift in the state’s electricity market.
With the new approval, Eko Electricity Distribution Plc and Ikeja Electric Plc have ceased to operate as distribution companies within Lagos. The move follows the state’s determination to create a more competitive and efficient electricity sector that can better serve its residents.
At the official signing ceremony, Folake Soetan represented IE Energy Lagos Limited, while Sheri Adegbenro signed on behalf of Excel Distribution Company Limited. The chairman of the Lagos State Electricity Regulatory Commission, Abimbola Odubiyi, described the event as “another defining moment in Lagos’ journey towards a reliable and sustainable electricity market.” He assured that the commission would continue to uphold “the principles of independence, transparency, and service to the people of Lagos.”
Odubiyi also acknowledged the contributions of Governor Babajide Sanwo Olu, the Lagos State House of Assembly, and the Ministry of Energy and Mineral Resources for their support in strengthening electricity regulation. He said the new licensing step is designed to ensure that Lagos residents benefit from improved energy access and stronger oversight of the power sector.
The Chief Executive Officer of the Lagos State Electricity Regulatory Commission, Dr Fouad Animashaun, said the issuance of the licences confirms the state’s commitment to private sector participation in power delivery. According to him, “By expanding competition, Lagosians can look forward to better access, improved reliability, and affordable electricity supply.”
Representatives of the new firms expressed confidence in their ability to improve electricity service. Kola Adeshina, who represented IE Energy Lagos, stated, “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 Limited said, “This licence is both a privilege and a responsibility, and we are committed to ensuring customers experience real improvements in service.”
Officials noted that this development aligns with the Lagos State Electricity Policy, which aims to guarantee reliable and equitable access to electricity through transparent regulation and increased private participation. The policy is expected to promote efficiency, sustainability, and long-term growth in the state’s electricity market.
