Power to the People: Four Nigerian States Assume Electricity Regulation
The Nigerian Electricity Regulatory Commission (NERC) has completed the transfer of regulatory authority to four states—Enugu, Ekiti, Ondo, and Imo—marking a significant shift in the nation’s electricity governance. The move, driven by the 2023 Electricity Act, decentralises oversight in a sector long controlled at the federal level.
Announcing the development on its X handle on Monday, NERC confirmed that the transfer of regulatory oversight to these states is part of a broader effort to hand over electricity market control to 10 states. The process began on January 10, 2025.
New Era of Energy Governance
NERC stated, “As of January 10, 2025, NERC has commenced the transfer of regulatory oversight to 10 states. Once the transfers are complete, the states will be responsible for regulating their electricity markets.
“The 10 states are Enugu; Ekiti; Ondo; Imo; Oyo; Edo; Kogi; Lagos; Ogun; and Niger. The transfers have been completed for four states, namely Enugu, Ekiti, Ondo, and Imo, while six states are still in progress.”
This transition redefines the framework of the Nigerian Electricity Supply Industry, which has operated under federal oversight since the enactment of the Electric Power Sector Reform Act in 2013.
Reshaping the Electricity Market
Historically, 11 electricity distribution companies (Discos) managed Nigeria’s electricity distribution—Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, Kaduna, Kano, Jos, Port Harcourt, and Yola—along with a 12th, Aba Power Electric. The regulatory shift will significantly alter this structure, particularly in states like Enugu, Benin, and Ibadan, where pre-existing arrangements are being adjusted.
The ongoing decentralisation is expected to foster more localised and efficient management of electricity markets. As six additional states—Oyo, Edo, Kogi, Lagos, Ogun, and Niger—prepare to assume control later this year, sub-companies are being incorporated to facilitate the transition.
Implications for the Future
This historic reform underscores the growing emphasis on decentralisation and state-level autonomy in Nigeria’s energy sector. Proponents argue that state-level regulation could enhance responsiveness to local needs, reduce inefficiencies, and attract targeted investments.
However, critics caution that the success of this initiative hinges on the capacity of individual states to establish effective regulatory frameworks and navigate the complexities of electricity market dynamics.
With four states already assuming their new roles and six others on the cusp of transition, Nigeria’s electricity market is poised for transformation—one that could redefine its energy landscape in the years to come.
