The Nigerian Electricity Regulatory Commission (NERC) has disclosed that seven states in Nigeria have officially taken charge of power regulation within their domains, in accordance with the Electricity Act 2023, signed into law by President Bola Tinubu.
The states include Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi. Additional states such as Lagos, Ogun, Niger, and Plateau will complete their transitions between June and September.
While speaking in a recent presentation at a stakeholders’ meeting in Lagos, NERC stated that “So far, 11 states have commenced the transition process, with seven states — including Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi — already transitioned,” he said.
The decentralisation of the sector by the Act has now given states the authority to control and regulate electricity within their domains, granting them the freedom to generate, transmit, and distribute power.
The commission also revealed that each state’s transfer order comes with a six-month operational handover period, after which the state assumes full regulatory control. For example, Lagos and Ogun are set to complete their transitions this June, while Niger and Plateau will follow in July and September respectively.
Meanwhile, Anambra, having passed its electricity law, has launched the Anambra State Electricity Regulatory Commission under Governor Charles Soludo.
While stakeholders see the move as a step toward energy decentralisation and improved competitiveness, it has also raised concerns about states’ capacity to effectively manage such a technically demanding sector.
Industry experts have pointed to issues such as capacity gaps, subsidy management, and regulatory clarity, especially with the perceived erosion of NERC’s central authority.
In states where NERC has relinquished authority, power distribution companies (Discos) are required to incorporate subsidiaries that will operate under state laws. For instance, the Enugu Electricity Distribution Company has established a new entity, Mainpower Electricity Distribution Limited, to handle electricity distribution under the newly formed Enugu State Electricity Regulatory Commission.
While some industry players remain skeptical about the readiness of states for the new role, others have hailed the shift as a positive turnaround that could attract new investments and foster more efficient energy delivery systems.
The Electricity Act 2023, passed under President Tinubu’s administration, marks a historic shift in Nigeria’s power sector governance, moving the nation from a centrally regulated structure to a federated, state-led model that reflects the federal nature of Nigeria’s constitution.
