EKEDC Restructures: Eko DisCo Launches Excel for Lagos Distribution

Lagos State’s electricity market is undergoing one of its most significant reforms in over a decade, following the decision by Eko Electricity Distribution Company Plc (EKEDC) to establish Excel Electricity Distribution Company Ltd. as a wholly owned subsidiary. The new entity will assume responsibility for all power distribution activities previously undertaken by Eko DisCo within Lagos State. This development forms part of a wider restructuring effort driven by emerging regulatory demands.

The transition stems from a directive issued by the Lagos State Electricity Regulatory Commission (LASERC) in line with the Electricity Act 2023, which empowers states to regulate their own electricity markets. Under the new law, distribution companies operating across multiple states are required to set up distinct entities that are licensed specifically for the areas in which they serve. LASERC insisted that EKEDC must create a dedicated Lagos-based company to operate within the state’s regulatory framework, resulting in the birth of Excel DisCo.

Why the Restructuring Has Become Necessary

According to senior officials within EKEDC, the restructuring does not represent a divestment, acquisition, or dissolution of the company. Instead, it is a compliance-driven shift to ensure that Eko DisCo meets the legal requirements introduced by the Electricity Act. Excel DisCo is now expected to operate under a dual regulatory environment, with oversight from both LASERC and the Nigerian Electricity Regulatory Commission (NERC).

EKEDC has now repositioned itself as a holding company, while Excel DisCo acts as its operating arm within Lagos. Importantly, EKEDC confirmed that its ownership structure remains unchanged: West Power & Gas Limited (WPG) continues to hold 60 per cent of the company, while the Bureau of Public Enterprises (BPE) retains the remaining 40 per cent on behalf of the Federal Government.

Clarifying the Situation with IKEDC

Speculation regarding the status of Ikeja Electricity Distribution Company (IKEDC) has been widespread, with rumours suggesting it might be replaced entirely. However, industry briefings indicate that IKEDC remains active and intact. The newly licensed IE Energy Lagos Limited is not a replacement for IKEDC but a subsidiary structured to meet the same regulatory demands imposed upon EKEDC.

This means that both Eko DisCo and Ikeja Electric remain legally recognised companies, although their Lagos-based distribution activities will now be carried out by their respective subsidiaries—Excel DisCo for EKEDC and IE Energy Lagos for IKEDC. The restructuring allows Lagos State to directly regulate distribution companies within its territory while maintaining the original corporate entities.

The Regulatory Context: Electricity Act 2023

The Electricity Act 2023 is the legislative catalyst for these sweeping changes. The Act decentralises aspects of Nigeria’s electricity regulation, granting states such as Lagos the authority to manage and supervise electricity distribution within their jurisdiction. LASERC’s licensing of Excel DisCo and IE Energy Lagos marks a foundational step in implementing the Act.

During the licence issuance ceremony held on 2 October 2025, LASERC Chairman Engr. Abimbola Odubiyi described the moment as transformative for Lagos’ long-term ambitions of developing an efficient and sustainable electricity market. LASERC’s Chief Executive Officer, Dr Fouad Animashaun, added that the restructuring aims to introduce greater competition, expand access, and improve overall service quality for the state’s millions of electricity users.

What Customers Are Likely to Experience

EKEDC has assured its customers that the transition will be carefully managed to avoid disruptions. Billing methods, customer service channels, and payment systems will continue to operate in their present form. Over time, customers will begin to see branding changes as Excel DisCo replaces the familiar Eko DisCo identity across platforms and service assets.

The company emphasises that no job losses are anticipated. EKEDC’s corporate communications team confirmed that all current staff will be retained under the new structure, and business operations will proceed as normal while the rebranding occurs progressively.

Reactions from Key Stakeholders

The restructuring has generated a mix of cautious optimism and uncertainty within the power sector:

• LASERC welcomed the move, stating that it aligns perfectly with its mandate to foster greater accountability and improved service quality.
• EKEDC reiterated that the restructuring is structural rather than commercial, and that its mission of delivering reliable electricity remains unchanged.
• IKEDC acknowledged that a similar subsidiary structure is being adopted to meet regulatory requirements.
• Consumers and sector analysts expressed mixed views; some believe the change will promote efficiency, while others are concerned about possible tariff adjustments or teething issues during the transition.

Why This Development Is Important

The reforms carry several implications for Nigeria’s evolving electricity market:

1. Decentralised Regulation: Lagos is now exercising its powers under the Electricity Act to build a state-controlled regulatory system.
2. Improved Transparency: Dedicated local subsidiaries may lead to clearer governance and operational accountability.
3. Investment Appeal: A more structured and predictable regulatory environment could attract domestic and foreign investors.
4. Customer-Centric Impact: Although EKEDC insists operations will remain stable, consumers will closely monitor whether service delivery improves under Excel DisCo.

Potential Risks and Challenges Ahead

Despite the positive outlook, there are notable challenges:

• Regulatory overlap between LASERC and NERC could create bureaucratic friction.
• Customer confusion may arise during the transition from Eko DisCo to Excel DisCo branding.
• Operational risks are possible as the subsidiary assumes full responsibility for Lagos distribution.
• Tariff pressures could emerge as the new structure begins to influence operating costs and regulatory expectations.

Looking Forward

The rebranding to Excel DisCo will occur gradually, allowing time for customer education and operational adjustments. Both LASERC and NERC are expected to monitor the new companies’ performance carefully over the coming months.

The long-term future of EKEDC and IKEDCas holding companies rather than primary operators will depend on how effectively they govern their subsidiaries and adapt to the new regulatory landscape. Both companies have pledged to prioritise communication with customers as the transition progresses.

The establishment of Excel Distribution Company marks a pivotal step in Lagos State’s journey towards a more locally regulated, efficient, and structured electricity market. Together with the parallel restructuring involving IKEDC’s subsidiary, the reforms represent a fundamental shift in how electricity distribution is governed in the state. While operational continuity appears assured, the coming years will reveal the full impact of this transition on service reliability, consumer satisfaction, and investment in the sector.