- NERC has transferred regulatory oversight to four states as part of the 2023 Electricity Act, decentralizing Nigeria’s electricity market structure.
- The transfer process will extend to 10 more states, aiming to improve electricity access, competition, and service delivery nationwide.
The Nigerian Electricity Regulatory Commission (NERC) has successfully transferred regulatory oversight to four states, marking a significant shift in the country’s electricity market structure. This development is part of implementing the 2023 Electricity Act, which has redefined the Nigerian Electricity Supply Industry (NESI) operational framework. NERC announced the completion of this process on its official X handle, confirming that these states are now fully responsible for regulating their electricity markets.
Currently, Nigeria has 11 electricity distribution companies (Discos), Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, Kaduna, Kano, Jos, Port Harcourt, and Yola, alongside the 12th, Aba Power Electric. With the recent regulatory transfer, market structures in Enugu, Benin, and Ibadan, which previously operated under existing structures, have been adjusted to reflect the new regulatory regime. This restructuring is part of a broader move to decentralize regulatory responsibilities within Nigeria’s power sector.
As of January 10, 2025, NERC has begun transferring regulatory oversight to 10 more states. These states include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, and Niger. While the transfer process for four states—Enugu, Ekiti, Ondo, and Imo, has been completed, NERC indicated that the remaining six states are ongoing. Once the transfers are completed across all 10 states, each state will be fully responsible for regulating their respective electricity markets, a significant shift from the previous centralized system.
This transition is a direct result of enacting the 2023 Electricity Act, which overhauls the operational structures within NESI that have been in place since 2013. The Act aims to empower states and create a more localized approach to regulating electricity markets, allowing for more tailored solutions and improved service delivery at the state level.
The ongoing regulatory overhaul is expected to foster competition among the various states, improve electricity access, and address long-standing inefficiencies in the power sector. As states take on greater responsibility for their electricity markets, the federal government hopes to see improved governance, better regulatory enforcement, and a more reliable power supply for Nigerians. The transfer of regulatory oversight is seen as a critical step towards modernizing Nigeria’s electricity sector and ensuring that electricity distribution is more responsive to local needs.