The Nigerian Electricity Regulatory Commission (NERC) has successfully transferred regulatory oversight to four states—Enugu, Ekiti, Ondo, and Imo—marking a significant step in the decentralization of Nigeria’s electricity market.
In a statement shared via its X handle on Monday, NERC confirmed that as of January 10, 2025, the transfer of regulatory responsibilities had been completed for these four states, making them fully responsible for overseeing their respective electricity markets.
The transfer of powers is part of the broader implementation of the 2023 Electricity Act (2023 EA), which has restructured the Nigerian Electricity Supply Industry (NESI) that has been in place since 2013. With the completion of the transfer for these states, the structure of the electricity distribution market is expected to change, particularly in areas covered by the Enugu DisCo, Benin DisCo, and Ibadan DisCo.
In total, NERC has begun the process of transferring regulatory oversight to 10 states, including Oyo, Edo, Kogi, Lagos, Ogun, and Niger. The transition to local regulation is expected to enhance the efficiency and responsiveness of electricity services at the state level, improving service delivery and market management.
Once fully implemented, the 10 states will have the authority to regulate their electricity markets independently, leading to a more localized approach to managing energy needs and resolving issues related to electricity distribution.
The regulatory shift is anticipated to stimulate innovation and accountability within the sector, with the remaining states expected to complete their oversight transfer by later in 2025.
