The Nigerian Electricity Regulatory Commission (NERC) has successfully transferred regulatory oversight of electricity markets to four states—Enugu, Ekiti, Ondo, and Imo—marking a significant shift in Nigeria’s power sector.
Announcing the development on its official X (formerly Twitter) handle, NERC stated that as of January 10, 2025, the transfer of regulatory functions to 10 states had commenced, with the process fully completed in four states. The remaining states, Oyo, Edo, Kogi, Lagos, Ogun, and Niger, are still in transition.
The commission noted, “Once the transfers are complete, the states will be responsible for regulating their electricity markets.”
**Impact of the 2023 Electricity Act**
This transfer follows the enactment of the 2023 Electricity Act, which grants states the authority to regulate their electricity supply industries, a significant departure from the centralized model that had been in place since 2013.
Prior to this change, Nigeria’s electricity market was structured around 11 distribution companies (DisCos), including Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, Kaduna, Kano, Jos, Port Harcourt, and Yola, alongside Aba Power Electric. With the regulatory transfer in Enugu, Ekiti, Ondo, and Imo, the operations of existing DisCos in these states, such as the Enugu and Ibadan DisCos, have been adjusted to align with the new framework.
**Further Changes Expected in 2025**
NERC also revealed that by the end of 2025, the six remaining states will incorporate their sub-companies to integrate into the evolving electricity market structure.
This shift is expected to enhance efficiency, promote localized decision-making, and address unique electricity challenges within each state, thereby advancing Nigeria’s energy sector transformation.
