The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight for the electricity market in Niger State to the Niger State Electricity Regulatory Commission (NSERC).
The announcement was made via NERC’s official X (formerly Twitter) handle on Friday.
This development aligns with the provisions of the Federal Republic of Nigeria’s amended Constitution and the Electricity Act 2023, which empowers states to regulate their electricity markets.
While NERC remains the central regulator overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations, this transfer marks a significant step towards localized regulation of electricity markets within states.
Key Provisions of the Transfer Order
The transfer order outlines specific directives to the Abuja Electricity Distribution Company (AEDC) and the Ibadan Electricity Distribution Company (IBEDC), which currently operate within Niger State:
AEDC Directives:
AEDC is required to establish a subsidiary, AEDC SubCo, to handle intrastate electricity supply and distribution in Niger State.
The incorporation of AEDC SubCo must be completed within 60 days from January 10, 2024.
AEDC SubCo must apply for and obtain an intrastate electricity supply and distribution license from NSERC.
IBEDC Directives:
- IBEDC must establish a subsidiary, IBEDC SubCo, to take over intrastate electricity supply and distribution responsibilities in Niger State.
- The incorporation of IBEDC SubCo must also be finalized within 60 days from January 10, 2024.
- IBEDC SubCo is required to apply for and secure a license from NSERC for its operations in Niger State.
The transfer process is to be fully implemented by July 9, 2025, ensuring a seamless transition of regulatory oversight to NSERC.
The Niger State Government has fulfilled the necessary prerequisites and formally notified NERC, requesting the transfer of regulatory authority.
This move reflects Nigeria’s broader effort to decentralize electricity regulation and improve efficiency and responsiveness in the management of state-level electricity markets.
What you should know
- In 2024, the Nigerian Electricity Regulatory Commission (NERC) transferred regulatory oversight to regional bodies across several states, including the Lagos Electricity Regulatory Commission (LASERC), Ekiti State Electricity Bureau (EERB), Ondo State Electricity Bureau (OSERB), and Ogun State to the Ogun State Electricity Regulatory Commission (OGERC) as reported by Nairametrics.
- This shift aims to improve efficiency by decentralizing management, enabling more localized oversight, and ensuring quicker responses to regional electricity needs.
- The objective is to improve operations and foster better regulation at the state level.
