NERC transfers regulatory oversight of Abia electricity market to state government

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By Abubakar Yunusa

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Abia state to the Abia State Electricity Regulatory Authority (ASERA).

In a statement on Wednesday, NERC said the transfer is in compliance with the amended constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (amended).

“Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/ international generation, transmission, supply, trading and system operations,” the commission said.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.”

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NERC noted that the government of Abia state complied with the conditions precedent in the laws, duly notified NERC and requested the transfer of regulatory oversight of the intrastate electricity market in Abia state.

The commission directed Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC subco) to assume responsibilities for intrastate supply and distribution of electricity in Abia from EEDC.

“EEDC shall complete the incorporation of EEDC SubCo within 60 days from 25th June 2025,” NERC said.

“The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from ASERA, among other directives.”

According to NERC, all transfers envisaged would be completed by December 24, 2025.

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In 2024, the commission began the process of granting states the authority to manage their electricity markets, including the generation, transmission, and distribution of power within their boundaries.

On March 17, 2025, Alex Otti, the governor of Abia, signed the state’s electricity bill into law, thereby empowering the state to regulate its electricity market.

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