Emmanuel Addeh in Abuja

Abia State has joined about a dozen other subnational governments in their bid to exercise regulatory oversight over the electricity market in their respective domains.

The Nigerian Electricity Regulatory Commission (NERC) confirmed yesterday that as mandated by the Electricity Act 2023, as amended, it had granted the request by the South-eastern state.

“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA),” the overall power sector regulator stated.

However, it recalled that with the EA 2023, the commission retains the role as a central regulator with regulatory oversight on the inter-state/ international generation, transmission, supply, trading and system operations.

Since the passage of the Electricity Act 2023, which decentralised power regulation and allowed subnational entities to oversee electricity generation, transmission, and distribution within their borders, a number of Nigerian states have begun establishing their own electricity regulatory commissions.

This development marks a significant shift in Nigeria’s power landscape, granting states more autonomy in managing energy access, attracting investment, and tailoring electricity policies to local needs.

Some of the states include Lagos, which has operationalised the Lagos State Electricity Market under the oversight of its own Lagos Electricity Regulatory Commission (LERC). The state has laid out frameworks to license independent power producers and off-grid solutions, particularly to serve industries and underserved communities.

Also, Kaduna State also enacted a law to establish its own electricity regulatory body. The state government aims to improve energy reliability and leverage local solutions, particularly for rural electrification and industrial clusters.

Besides, Oyo State is another front-runner. The state has announced the formation of an electricity regulatory commission to oversee private sector investment and ensure efficient power delivery across its urban and rural regions.

Some other states, including Imo, Edo, Ekiti, and Ondo, Enugu, Kogi,Ogun, Niger and Plateau states, have set up similar commissions,   reflecting a recognition of the inefficiencies of centralised power regulation and the potential of localised oversight to accelerate energy access and economic growth.

While NERC remains the central regulator for interstate and national-level electricity matters, these new state commissions are expected to handle intrastate electricity affairs, heralding a new era of competitive and localised power markets across Nigeria.

NERC, in a note stated that the EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and request NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.

“Based on this, the Government of Abia State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Abia State,” it stated.

The transfer Order, NERC said , has the following provisions: “Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Abia State from EEDC”

Besides, it stated that EEDC shall complete the incorporation of EEDC SubCo within 60 days from June 25, 2025.

“The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ASERA, among other directives. All transfers envisaged by this order shall be completed by December 24, 2025,” NERC added.

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