The Nigerian Electricity Regulatory Commission (NERC) has finalized the transfer of full regulatory oversight of electricity markets to four states: Enugu, Ekiti, Ondo, and Imo.
NERC announced this development on its X (formerly Twitter) handle on Monday, revealing that the transfer process is part of a broader initiative to decentralize electricity market regulation across 10 states.
In a statement, NERC disclosed:
“As of January 10, 2025, NERC has commenced the transfer of regulatory oversight to 10 states. Once the transfers are complete, the states will independently regulate their electricity markets.
“The 10 states involved are Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, and Niger. The transfer process has been completed for Enugu, Ekiti, Ondo, and Imo, while the remaining six states are still in progress.”
This restructuring follows the enactment of the 2023 Electricity Act, which introduced significant changes to the Nigerian Electricity Supply Industry (NESI) that had operated under a centralized regulatory framework since 2013.
Before the transition, NESI relied on 11 distribution companies (DisCos) for power distribution: Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, Kaduna, Kano, Jos, Port Harcourt, and Yola, along with a 12th entity, Aba Power Electric.
With the decentralization, regulatory oversight for DisCos operating in states like Enugu and Ibadan has been adjusted to align with state-level control.
The transfer of regulatory oversight for the remaining six states—Oyo, Edo, Kogi, Lagos, Ogun, and Niger—is expected to conclude in 2025. These states will establish sub-companies to oversee electricity regulation and further refine the market structure.
This shift is poised to enhance localized decision-making, improve regulatory efficiency, and cater to the unique energy needs of individual states.
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