Revealed! Lagos sets strict penalties for unlicensed operators in electricity market

• The Lagos State Energy Regulatory Commission issued Order No. LASERC ORDER/001/2025, marking the authoritative commencement of regulatory power implicit the state's vigor market
• The bid mandates that each unlicensed energy operators cease their activities instantly and get a licence from LASERC, with penalties for non-compliance
• Additionally, LASERC affirmed the continued applicability of nationalist regulatory instruments and emphasised its committedness to ensuring a harmless and businesslike energy marketplace successful Lagos

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The ineligible instauration for the cognition of the Lagos State vigor marketplace has been established by the Lagos State Energy Regulatory Commission (LASERC) done the authoritative issuance of Order No. LASERC ORDER/001/2025.

A caller bid mandates that each unlicensed operators halt their regulated activities immediately. Photo Credit: Lagos State, Contributor
Source: UGC

As required by the Lagos State Electricity Law 2024 and the Electricity Act 2023, the Nigerian Electricity Regulatory Commission’s regulatory power volition officially extremity with the issuance of this milestone order.

The order, which takes contiguous effect, prohibits each individuals and entities from undertaking regulated energy activities wrong Lagos State without a valid licence oregon licence issued by LASERC.

The committee emphasised that holding a licence from immoderate different regulatory assemblage volition not exempt violators from liability nether the caller regulatory regime.

The bid mandates that each unlicensed operators halt their regulated activities instantly and use to the committee for the due license. Penalties for violators see fines of astatine slightest N20 million, with an further N20,000 for each time that non-compliance persists.

Once again, organisations that are unsure of their regulatory presumption are urged to interaction the committee for ceremonial confirmation.

The bid besides affirms the continued applicability of existing nationalist regulatory instruments — including tariff guidelines, grid codes, information standards, and metering regulations — arsenic binding connected all energy licensees operating wrong Lagos State, pending immoderate amendments oregon further directives from the Commission.

“This Order reinforces LASERC’s mandate to guarantee a safe, efficient, and reliable energy marketplace successful Lagos,” said Dr. Fouad Animashaun, CEO/Executive Commissioner of LASERC. “We are committed to upholding planetary standards and protecting energy users' and investors' interests successful the evolving powerfulness sector.”

As the archetypal subnational entity successful the federation and 1 of the fewer successful Africa to make a afloat regulated, autarkic energy market, Lagos State is poised to marque history.

The authorities authorities is integrating each of its power-related policies into a single, broad energy argumentation arsenic portion of a betterment to modernize its energy ecosystem. This strategy aims to amended vigor availability, pull investment, and accelerate growth.

Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, made the announcement during the 2025 Ministerial Press Briefing held successful Alausa, Ikeja.

Why Nigeria lacks due energy

Legit.ng reported that Tony Elumelu, president of Transnational Corporation Plc, urged the national authorities to expedite the outgo of the nation's implicit N2 trillion debt to energy procreation firms (Gencos).

Elumelu said this during the corporation's 18th yearly wide gathering (AGM) successful Abuja.

The billionaire disclosed that TransAfam Power, a generating steadfast owned by Transcorp Power, is owed N250 billion.

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Source: Legit.ng