NERC decentralizes electricity oversight, boosting state-level regulation

The Nigerian Electricity Regulatory Commission (NERC) has transferred full regulatory authority to four states: Enugu, Ekiti, Ondo, and Imo. This move marks a critical step in decentralizing power oversight and empowering state governments to manage their electricity markets independently.

The transfer, announced by NERC on Monday via its official X handle, is part of a broader initiative to devolve electricity regulation to 10 states in total, with the process already underway for Oyo, Edo, Kogi, Lagos, Ogun, and Niger. The commission stated that the transfer aligns with the provisions of the 2023 Electricity Act, which restructured the operational framework of the Nigerian Electricity Supply Industry (NESI).

“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,” NERC disclosed.

The regulatory shift has also impacted the operational structure of existing electricity distribution companies (Discos). For instance, the market frameworks for Enugu, Benin, and Ibadan Discos have been adjusted to accommodate the new state-specific oversight.

This development signals a significant departure from the centralized regulation model that had governed Nigeria’s electricity market for over a decade. As more states complete their transition, the decentralization is expected to pave the way for tailored energy policies, increased private sector participation, and improved access to electricity at the grassroots level.