The Nigerian Electricity Regulatory Commission (NERC) has approved the transfer of electricity market oversight to six additional states, empowering them to regulate their respective power sectors.
In a statement released on Wednesday, NERC confirmed that the affected states—Enugu, Ekiti, Ondo, Imo, Oyo, and Edo—have established their own electricity regulatory agencies and are now authorised to manage electricity generation, distribution, and supply within their jurisdictions.
The development follows the recent transfer of regulatory authority to the Edo State Electricity Regulatory Commission (ESERC). NERC explained that the move aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), which decentralises aspects of electricity regulation to the states.
Under the new arrangement, the regulatory shift is formalised through an Order of Transfer of Regulatory Oversight of the Electricity Market from NERC to the respective State Electricity Regulatory Commissions (SERCs). As a result, the six states now have full authority over their intrastate electricity markets.
Despite the transfer of certain powers, NERC will continue to function as the central regulator, maintaining oversight of inter-state and international electricity generation, transmission, trading, system operations, and supply.
Earlier in April, NERC had announced that it would cede regulatory oversight to Enugu, Imo, Ekiti, and Ondo states effective May 1, 2024, following the establishment of their state-owned regulatory bodies.
The Electricity Act 2023 repeals the Electric Power Sector Reform Act of 2005 and provides a comprehensive legal and institutional framework for Nigeria’s electricity supply industry. The Act consolidates laws governing generation, transmission, system operation, distribution, supply, and trading of electricity. It also strengthens consumer protection, promotes integrated resource planning, supports renewable energy integration into Nigeria’s energy mix, and aims to attract greater investment into the power sector.
