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Nigerian states take control of electricity regulation

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In a move that could reshape Nigeria’s electricity landscape, the Nigerian Electricity Regulatory Commission (NERC) has officially handed over regulatory oversight of electricity markets to four states: Enugu, Ekiti, Ondo, and Imo.

This marks a historic shift in the nation’s power sector, empowering states to independently manage their electricity markets for the first time.

Announcing the milestone on its X handle on Monday, NERC revealed that the transfer is part of a broader initiative affecting 10 states. “As of January 10, 2025, NERC has commenced the transfer of regulatory oversight to 10 states.

Once complete, these states will regulate their electricity markets,” the commission stated. The remaining six states—Oyo, Edo, Kogi, Lagos, Ogun, and Niger—are expected to finalize their transitions later this year.

This transformation stems from the enactment of the 2023 Electricity Act, which decentralizes regulatory authority in a sector that, until now, has been centrally governed.

The reform represents a departure from the status quo established under the Nigerian Electricity Supply Industry since 2013, which relied on 11 distribution companies (DisCos) and Aba Power Electric to supply electricity nationwide.

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For residents of Enugu, Ekiti, Ondo, and Imo, the completed transfer signals a potential shift in how power is distributed, consumed, and regulated.

The move also impacts the operational structures of existing DisCos, particularly Enugu DisCo, Benin DisCo, and Ibadan DisCo, which will have to adapt to the new decentralized regulatory framework.

While the changes bring hope for tailored solutions to each state’s electricity challenges, they also raise questions about how prepared states are to shoulder this responsibility.

Will this decentralization lead to better electricity supply and improved market dynamics? Or will the challenges of infrastructure, capacity, and local politics create new hurdles?

As the remaining six states gear up for their transitions, the electricity market is poised for significant structural changes throughout 2025. This evolution will require collaboration between state governments, DisCos, and private sector players to ensure the reforms deliver on their promise of improved power supply and a more efficient energy market.

The road ahead may be bumpy, but this shift signals an era where states have the power—quite literally—to determine their energy futures. Nigerians are watching closely, hopeful that this bold step will bring lasting solutions to the country’s longstanding electricity woes.

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