NERC transfers regulatory control of Abia electricity market to State Authority

The Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of Abia State’s electricity market to the Abia State Electricity Regulatory Authority (ASERA), marking another step in the decentralisation of Nigeria’s power sector.

The announcement was made via a statement published on NERC’s official X (formerly Twitter) account on Wednesday.

The transfer follows provisions in the amended 1999 Constitution and the Electricity Act 2023, which allow state governments to assume control over electricity generation, transmission, and distribution within their jurisdictions, subject to formal notification and compliance with legal requirements.

“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, the Nigerian Electricity Regulatory Commission has issued an order transferring regulatory oversight of the electricity market in Abia State to the Abia State Electricity Regulatory Authority (ASERA),” the statement read.

According to NERC, the Government of Abia State met all statutory prerequisites and formally notified the Commission of its intention to assume regulatory control over intrastate electricity operations.

A major provision in the order directs the Enugu Electricity Distribution Company (EEDC) to establish a subsidiary, EEDC SubCo, which will take charge of electricity supply and distribution within Abia State. The company is expected to complete incorporation within 60 days from 25 June 2025.

EEDC SubCo must also apply for and obtain an operating licence from ASERA. NERC noted that all regulatory and operational transitions must be finalised by 24 December 2025.

This move follows similar transfers of authority to other state-level regulators. Since 2024, NERC has devolved electricity market regulation to Lagos, Ekiti, Ondo, Ogun, and Plateau States. In March 2025, oversight in Niger State was handed to the Niger State Electricity Regulatory Commission (NSERC), and Kogi State also recently assumed control through the Kogi State Electricity Regulatory Commission (KSERC).

These reforms are intended to enhance responsiveness and accountability in the sector by placing regulation closer to the point of electricity generation, distribution, and supply.

Historically, Nigeria’s electricity sector was regulated solely at the federal level by NERC. However, with the 2023 constitutional amendment and the enactment of the Electricity Act 2023, states now have the authority to create their own electricity markets and regulatory bodies, allowing them to manage power supply within their borders more effectively.