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are beginning to play their constitutional roles. As highlighted below, one
of such States— Lagos State— has gone ahead to enact its state electricity
law.
5.2.3 Lagos State Electric Power Sector Reform Law
(LEPSRL)
32
By virtue of the EPSRA
33 empowering the Federal Government to
regulate on-grid and off-grid across both urban and rural communities, what is left for States Governments to regulate is captive and
embedded electricity generation. Consequently, the Lagos State House
of Assembly enacted the LEPSRL to boost electricity supply within the
state through embedded generation and supply.
34 The law establishes the
Lagos State Electricity Board (LSEB) to implement the Embedded Power
Scheme (EPS).
35 The LEPSRL empowers LSEB to generate, transmit
and distribute electricity to areas within the state not yet covered by
the National Grid (“the grid”)
36 and to establish power stations in areas
not covered by the EPS.
37 The Lagos State Government would work
with electricity generation and distribution companies who are already
licensed by NERC.
It is observed that the law mandates LSEB to liaise with NERC and
other relevant bodies and stakeholders to create an enabling environment for the EPS and rural electrification projects within the state. After
obtaining a license from NERC, the licensee is required to obtain the
approval of LSEB before operating a power plant.
38 As is discussed in
Sect. 5.3 of this chapter, the LSEB’s referral to NERC and the issue of
double licensing (regulation) from NERC and LSEB appears to weaken
Lagos State’s regulatory independence of off-grid electricity regulation.
32 Lagos Electric Power Sector Reform Law (LEPSRL) 2018, https://laws.lawnigeria.com/2019/
05/06/lagos-state-electricity-sector-reforms-law-2018/.
33 EPSRA, s 62 (1)(a) and (2).
34 LEPSRL, s 32 (1)(b) and (2)(d); LEPSRL, s 62 (1), (2) and (9)(b)–(c).
35 LEPSRL, s 5.
36 LEPSRL, s 17 (o).
37 LEPSRL, s 17 (s).
38 LEPSRL, s 17 (w).
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