Enforcement follows prolonged failure to comply with NERC directive
The Federal Competition and Consumer Protection Commission (FCCPC) has sealed the office of Ikeja Electric Plc (IE), an electricity distribution company, in Lagos on Thursday.
This forceful action was taken due to what the FCCPC described as the continued and deliberate violation of consumer rights and the company’s refusal to comply with a binding regulatory decision issued more than two years prior. The sealing of the premises marks a significant escalation in the battle to enforce consumer rights within Nigeria’s often-troubled power sector.
The commission stated that the enforcement became necessary after multiple attempts to compel the electricity provider to obey a directive from the Nigerian Electricity Regulatory Commission (NERC). The underlying issue centered on a single complainant who had been subjected to injustice for an extended period. The FCCPC emphasized that service providers must adhere to regulatory orders to ensure fair treatment of customers.
Dispute centers on unbundling of maximum demand account
The crux of the regulatory violation stems from Ikeja Electric’s prolonged non-compliance with a specific NERC order related to metering and billing. The order had instructed the distribution company to unbundle a single Maximum Demand (MD) account into twenty separate non-Maximum Demand accounts. These accounts were meant to reflect nineteen individual residential units and a single service point, all owned by the affected complainant.
Furthermore, the directive required Ikeja Electric to install separate meters and connect each of these twenty units appropriately. Despite repeated notifications and clear instructions, the distribution company reportedly refused to carry out this mandated conversion and metering process. This refusal left the consumer in a state of extended distress and financial obligation without corresponding service.
The prolonged refusal by Ikeja Electric resulted in the affected complainant being cut off from power supply for more than two and a half years. This extended blackout occurred despite the customer fulfilling all financial demands made by the electricity company during the period. The FCCPC noted that the denial of electricity rendered the nineteen residential units completely unusable for the entire duration of the dispute.
FCCPC details timeline of ignored compliance notices
During the enforcement exercise, Engr. Idayat Olorungbe, representing the Director of Surveillance and Investigation, Mrs. Bola Adeyinka, explained the commission’s measured approach before resorting to sealing the premises. She highlighted that the FCCPC had engaged extensively with Ikeja Electric over several months, providing ample opportunity for voluntary compliance. The commission’s measured response ensures that enforcement is always a last resort after dialogue fails.
A formal directive detailing clear compliance steps and timelines was issued by the FCCPC in April 2025. Following the failure of the company to take any action, the commission issued a Compliance Notice on October 2, 2025. This notice gave the distribution company a grace period of seven business days to comply with the directive, but it was ultimately ignored.
Olorungbe maintained that the commission’s decisive action is fully supported by the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018. Specifically, she cited Sections 17, 18, 124, 150, and 155, which empower the agency to intervene, issue directives, enforce compliance notices, and seal premises where ongoing violations result in consumer harm. Ikeja Electric’s sustained refusal to carry out a lawful regulatory decision, coupled with the long-term denial of essential electricity services, met the necessary threshold for this proportionate enforcement measure.
Broader implications for consumer rights and industry regulation
The sealing of the Ikeja Electric office sends a potent message to all service providers about the importance of regulatory compliance and consumer protection in Nigeria. Olorungbe stated that the seal will remain in place until Ikeja Electric fully complies with the directives issued by both NERC and the FCCPC. Furthermore, the company must provide written evidence of that compliance before the seal is removed.
The FCCPC reiterated that Nigerian consumers possess an inalienable right to fair treatment, access to essential services, and protection from unfair, coercive, or negligent business practices. The commission affirmed its commitment to utilizing the full extent of the law to safeguard these rights. The agency’s action underscores its determination to ensure that utility providers meet their fundamental obligations to the public.
This enforcement exercise drew public attention across the Ikeja area of Lagos as FCCPC officials executed the sealing of the facility. The event is one of the agency’s most assertive measures to date against a major power distribution company over regulatory disobedience. As of press time, officials from Ikeja Electric had not yet issued a formal public response to the sealing of their premises. The incident highlights the growing role of the FCCPC in holding powerful entities accountable to the Nigerian citizenry.
