FCCPC seals IE’s office over alleged consumer rights violation

The Federal Competition and Consumer Protection Commission (FCCPC) yesterday sealed the premises of the Head Office of Ikeja Electric (IE) Plc over what it described as the company’s prolonged refusal to comply with regulatory directives and continued violation of consumer rights.

The enforcement action, carried out in Lagos, followed IE’s alleged failure to implement a binding decision issued by the Nigerian Electricity Regulatory Commission (NERC) directing the company to unbundle a Maximum Demand (MD) account of a customer into 20 separate non-MD accounts. The order required the company to treat 19 residential units and one service point as separate customer units and provide the appropriate metering and electricity connection.

But the utility insisted that the delay in complying with the order was not deliberate as it required a process which needed some things to be put in place before execution. For instance, IE explained that upon the site inspection of the premises, it was observed that the hotel structure remains in its original state and has not been converted into a residential building comprising 19 flats as represented by the customer, meaning the premises still operates as a single consolidated facility, with no verifiable physical evidence of residential partitioning or individual dwelling units.

Besides, the firm explained that the building maintains the same transformer configuration and MD service connection, with no visible low-voltage network topology or internal sub-networking to support connection of 20 separate NMD meters.

In carrying out the sealing of the IE premises, the Director of Surveillance and Investigation at the FCCPC, Mrs. Bola Adeyinka represented by Assistant Director, Surveillance & investigation, FCCPC, Engineer Idayat Olorungbebe, IE’s non-compliance left the complainant (Providence real estate) without electricity supply for over two and a half years despite fulfilling all financial and procedural obligations requested by the distribution company.

Adeosun said the prolonged blackout prevented the complainant from putting the 19 residential units to use, resulting in significant hardship a situation the Commission described as a clear violation of consumer rights under the Federal Competition and Consumer Protection Act (FCCPA) 2018.

She explained that the FCCPC engaged Ikeja Electric on several occasions and issued multiple directives, including an April 2025 compliance instruction and a formal Compliance Notice on October 2, 2025, giving the company seven business days to meet its obligations. Despite these interventions, the company reportedly failed to act.

Adeosun cited Sections 17, 18, 124, 150, and 155 of the FCCPA as the legal basis for the enforcement exercise, noting that the provisions empower the Commission to issue directives, enforce compliance, and take action including sealing premises where consumer harm persists.

“The sealing of this facility is a proportionate enforcement measure taken only after repeated engagement and several opportunities for voluntary compliance,” she said. “The seal will remain in place until Ikeja Electric fully complies with the directives issued by both NERC and the FCCPC and submits written proof of compliance.”

She also stated that the access given to the control wasn’t a free meal as Ikeja Electric would write an undertaking stating that access to the control room would be allowed so as not to lead to service disruption

She further reaffirmed the Commission’s commitment to ensuring fair treatment of consumers and unhindered access to essential services, stressing that service providers must meet statutory obligations and respect consumer rights.

The FCCPC said it will continue to intensify enforcement to safeguard consumers across all sectors.

The Head, Corporate Communications, IE, Kingsley Okotie, in a telephone interview with The Nation, described the action as regrettable stating  that staff that could have attended to the customer’s situation were also locked out with the sealing of the premises.

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He however assured that the firm would continue to engage with the FCCPC to resolve the matter as soon as possible in the over all interest of all our customers.

Okotie explained that the the  non-compliance issue being referred to is receiving utmost attention by the company to amicably resolve.

In a correspondence to FCCPC on October 14, 2025, a copy of which was sighted by The Nation, IE had assured of its “commitment to upholding the highest standards of regulatory compliance, consumer protection, and fair business practices as enshrined under the FCCPA, the Electricity Act 2023, and relevant NERC Regulations.

Okotie disclosed that the utility had following the NERC Ikeja Forum’s, the firm visited the said location for assessment and in view of implementing the ruling regarding unbundling of the existing Maximum Demand (MD) account and provision of 20 Non-Maximum Demand (NMD) prepaid meters.

“We reiterate that our commitment to full compliance with the Forum’s Decision and we happily invite the FCCPC to carry out a joint inspection of the property to independently ascertain the facts stated above and to confirm the readiness of the property to be served as expected of Ikeja Electric. We are also available for a meeting with the FCCPC to provide further information.

“We reiterate that we remain fully committed to complying with the Forum’s decision within the limits of technical feasibility. We are willing to provide the Complainant with guidance and technical support on the process of procuring the 20 NMD meters at the customer’s cost, in line with the Forum’s directive. We will also continue to engage with the customer pending confirmation of the property’s configuration and readiness for connection as multiple residential units,” he said.