Lagos State Governor Babajide Sanwo-Olu has announced plans to establish an electricity regulatory agency.
This agency will be tasked with regulating the activities of the Ikeja and Eko Electricity Distribution Companies (DisCos) operating within the state.
During the Thursday media chat, Governor Sanwo-Olu highlighted the need for effective regulation in the electricity sector, emphasizing that the new agency would be modeled after the Nigerian Electricity Regulatory Commission (NERC).
“We have two distribution companies that are not entangled with any other state,” Governor Sanwo-Olu stated. “We realize that we need to collaborate with them for us to have a lasting solution.”
The governor also revealed that a Lagos State electricity bill has been submitted to the House of Assembly.
This bill outlines the framework for restructuring the relationship with the DisCos to make the atmosphere more investment-friendly and allow for the participation of other players in the sector.
Compared to other states where DisCos are tangled together across multiple regions, Lagos State’s situation is unique.
Governor Sanwo-Olu emphasized the importance of collaboration with the DisCos to meet the growing demand for electricity in the state.
Once the proposed law is passed, Governor Sanwo-Olu believes it will pave the way for new investments in both electricity generation and distribution. He expressed optimism that the legislation would create a conducive environment for growth and development in the sector.
“With the removal of obstacles through the passage of the Electricity Act, Lagos State is well-primed for facilitating electricity supply,” Governor Sanwo-Olu stated. “The state is committed to ensuring that the environment is conducive for new entrants and investments in the electricity sector.”
