The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of Ogun State’s electricity market to the Ogun State Electricity Regulatory Commission (OGERC), following the state government’s compliance with the newly amended Electricity Act of 2023.
The directive, announced on Monday via NERC’s social media handle, is part of the broader implementation of the Electricity Act 2023 (Amended), which requires states to notify the Commission and request authorization to establish and regulate their intra-state electricity markets. Ogun State met these conditions and requested the transfer of regulatory authority for its intrastate electricity market.
According to NERC, the transfer is in line with the constitutional provisions and the newly amended Electricity Act, which outlines the roles of both the federal and state regulatory bodies. Under the new structure, NERC will continue to oversee interstate and international electricity generation, transmission, supply, trading, and system operations, while the OGERC will assume responsibility for regulating the intra-state market within Ogun State.
As part of the transition, the NERC has ordered three major electricity distribution companies—Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC)—to incorporate new subsidiaries to handle the intrastate supply and distribution of electricity in Ogun State. The newly formed subsidiaries, EKEDP SubCo, IE SubCo, and IBEDC SubCo, will be tasked with managing the local electricity market.
The NERC has set a deadline of 60 days from December 24, 2024, for these distribution companies to complete the incorporation of the subsidiaries. The subcompanies will also need to apply for and obtain licenses from OGERC to begin operations.
All transfers related to this order are expected to be fully completed by June 23, 2025. This move marks a significant step toward greater decentralization and local control over electricity markets in Nigeria, empowering Ogun State to manage and regulate its own energy distribution while maintaining national regulatory standards.
