By Lagos State has confirmed the continued licensing of Ikeja Electric Distribution Company (IKEDC) and Eko Electric Distribution Company (EKEDC) as the official electricity distributors serving the region, solidifying their position amid ongoing power sector reforms in Nigeria.
The Ministry of Energy, confirming the licenses this week, emphasised the crucial role both IKEDC and EKEDC play in ensuring reliable electricity supply to Lagos, Nigeria’s commercial hub and most populous state. This decision follows recent reviews of the distribution company (DisCo) operations across Nigeria to boost efficiency and service delivery.
IKEDC and EKEDC are responsible for power distribution to Lagos’s millions of residents and businesses, handling a consumer base that represents one of the largest electricity markets in Africa.
Lagos’s dense population, economic activities, and rapid urbanisation have made consistent electricity supply a top priority for state authorities. According to the Nigerian Electricity Regulatory Commission (NERC), these two DisCos collectively serve over 5 million customers, covering roughly 90% of the state’s power consumers.
Energy experts have welcomed the move, noting that maintaining licensed, experienced DisCos is vital to improving service standards. Dr. Ayo Adekunle, an energy analyst based in Lagos, told Daily Tech Nigeria, “The decision to keep IKEDC and EKEDC licensed reflects confidence in their continued ability to manage complex urban power distribution. However, ongoing infrastructure upgrades and customer service improvements are needed to meet Lagosians’ growing energy demands.”
This license confirmation coincides with the Federal Government’s broader power sector reforms aimed at addressing distribution inefficiencies, reducing technical losses, and tackling revenue collection challenges that have long plagued Nigeria’s electricity market. IKEDC and EKEDC have both announced recent initiatives to deploy smart meters and enhance grid infrastructure, signaling alignment with national efforts to modernise electricity distribution.
For Nigerians and businesses in Lagos, the licensing stability offers some assurance amid concerns over erratic power supply, frequent outages, and escalating electricity tariffs. As Nigeria’s economy increasingly depends on reliable power, effective distribution will continue to shape productivity and living standards.
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