- NERC has given Oyo State the power to regulate its electricity market through the Oyo State Electricity Regulatory Commission (OSERC).
- Ibadan Electricity Distribution Company (IBEDC) must create a new subsidiary, IBEDC SubCo, to manage electricity distribution in Oyo State. This must be done by February 2025.
In a significant shift towards localized control, the Nigerian Electricity Regulatory Commission (NERC) has officially transferred the regulatory oversight of the electricity market in Oyo State to the Oyo State Electricity Regulatory Commission (OSERC).
This development marks a key implementation of the Electricity Act (EA) 2023, which empowers state governments to regulate their electricity markets while NERC retains oversight over inter-state and international electricity operations.
This change aims to enhance the efficiency and responsiveness of the electricity sector within Oyo State by allowing OSERC to address local needs more effectively. The decision is part of a broader trend toward decentralizing electricity regulation across Nigeria. Similar regulatory transfers have been carried out in other states, such as Ondo and Enugu, to promote a more localized approach to managing electricity services.
As part of the transition, Ibadan Electricity Distribution Company (IBEDC) has been directed to create a subsidiary, IBEDC SubCo, to manage the intrastate supply and distribution of electricity within Oyo State. The establishment of IBEDC SubCo is expected to be completed within 60 days from August 6, 2024. The new subsidiary will apply for and obtain a license from OSERC to operate within the state. All regulatory transfers are mandated to be finalized by February 5, 2025.
The move aligns with the Electricity Act, which requires states interested in managing their intrastate electricity markets to notify NERC and formally request the transfer of regulatory authority. The Oyo State Government has adhered to these requirements and has received the necessary approval to move forward with local regulation.
Governor Seyi Makinde, who signed the Oyo State Electricity Regulatory Commission Bill 2024 into law on February 9, 2024, has strongly supported this development. At the signing ceremony in Ibadan, Governor Makinde highlighted that decentralization represents a crucial step toward achieving fiscal federalism.
He emphasized that this transition allows Oyo State to generate, transmit, and distribute electricity more effectively within its jurisdiction, enhancing local accountability and governance in the energy sector.
Governor Makinde stated, “This law and the subsequent regulatory changes signify our commitment to ensuring that energy sufficiency is addressed at the state level. It also aligns with our advocacy for fiscal federalism, allowing state governments to serve their people better and hold them accountable on electricity supply issues.”
This move is expected to bring tangible benefits to the residents of Oyo State, paving the way for improved electricity services and infrastructure development.