- NERC mandates states to assume full electricity regulation by July 2025, accelerating power sector decentralisation.
- The Electricity Act 2023 empowers states to manage generation, transmission, and distribution, fostering localised solutions and private sector investment.
The Nigerian Electricity Regulatory Commission (NERC) has set a firm deadline for state electricity regulation. By July 2025, state electricity regulatory commissions must take complete control of their electricity markets. This decision marks a significant step in decentralising Nigeria’s power sector.
NERC announced this directive in a public notice about transferring regulatory oversight to Kogi State. The Commission stressed its commitment to enforcing the Electricity Act 2023, which allows states to manage electricity generation, transmission, and distribution.
So far, NERC has transferred regulatory control to ten states: Lagos, Enugu, Ondo, Ekiti, Kogi, Oyo, Imo, Edo, Niger, and Ogun. Some states have already taken charge, while others are working to meet the 2025 deadline. “While some have fully taken charge, the others have up till July 2025 to fully take over oversight in their respective states,” NERC stated.
Enugu, Ekiti, Ondo, and Imo have confirmed their readiness to manage their electricity infrastructure. This milestone aligns with the Electricity Act 2023, signed by President Bola Ahmed Tinubu in February 2024. The Act encourages more significant state and private sector participation in the power industry.
States that want to regulate their electricity markets must formally notify NERC and request authority. Kogi State recently completed this process, and the Kogi State Electricity Regulatory Commission (KSERC) has now taken full oversight of its electricity market.
“KSERC has formally taken over oversight of the electricity market in the state in line with the provisions of the Electricity Act 2023,” NERC confirmed.
During a meeting in Abuja, NERC Chairman Sanusi Garba assured continued support for KSERC and other state regulators. “NERC will keep an open door to assist KSERC in their information need to support their seamless operation,” Garba stated.
For many Nigerians, this reform offers hope. Frequent blackouts and unreliable service have taken an emotional and economic toll. The government aims to provide localised solutions for each region by allowing states to manage their electricity. This change could improve energy access in rural and underserved areas, boosting local economies.
However, success depends on state governments’ ability to manage their electricity sectors. States must secure funding, develop strong regulations, and build technical expertise. Effective oversight will determine whether this reform leads to better service delivery.
The Electricity Act 2023 also encourages private sector investment, particularly in renewable energy and new technologies.
The World Bank states, “Improved access to electricity is critical for economic growth and poverty reduction.” If implemented successfully, this Act could significantly impact Nigeria’s development.
The 2025 deadline pushes states to act quickly. As the transition continues, tracking the progress of state regulators will be essential. Their effectiveness will shape the future of Nigeria’s electricity sector.