15 States Assume Power Regulation Under New Electricity Act

Emmanuel Addeh in Abuja

Fifteen states have formally assumed control of electricity market regulation within their jurisdictions, marking a significant shift in Nigeria’s power sector structure following the implementation of the Electricity Act 2023.

The transition, coordinated by the Nigerian Electricity Regulatory Commission (NERC), effectively decentralises key aspects of electricity governance, allowing subnational governments to establish and operate their own State Electricity Regulators (SERs).

These bodies are now responsible for licensing operators, setting tariffs, driving investments, and ensuring consumer protection within their respective states, a note by NERC said yesterday.

The legal basis for this transition is clearly provided in the new Act, which states that a state may “establish and regulate intra-State electricity markets,” while also mandating NERC to transfer regulatory oversight to state authorities that meet the required conditions.

 It further clarifies that electricity markets in states that have not exercised this option will continue to be regulated by the commission.

According to NERC, the reform is aimed at accelerating market development by bringing regulation closer to consumers and aligning policies with local economic realities. It is also expected to unlock subnational investments in power generation, distribution, and off-grid solutions.

According to NERC, the states that have completed the transition cut across multiple regions. Enugu, Ekiti and Ondo were among the earliest movers, concluding the process between October 22 and 23, 2024. Imo followed on December 31, 2024, while Oyo and Edo completed their transitions in early 2025.

Kogi joined in March 2025, while Lagos transitioned on June 4, 2025, a milestone given its status as Nigeria’s largest electricity market. Ogun and Niger followed in June and July 2025, respectively, further expanding the number of states with regulatory autonomy.

Besides, Plateau transitioned in September 2025, while Abia and Anambra completed their processes around the turn of 2026. The most recent additions are Nasarawa and Bayelsa, which concluded their transitions in February 2026, bringing the total to 15 states.

However, under the new framework, NERC retains oversight of interstate electricity activities, including generation, transmission, and multi-state distribution operations. But states with functional regulatory systems now exercise authority over intrastate electricity markets, including embedded generation and mini-grid development.

The decentralisation is expected to stimulate competition, improve service delivery, and address longstanding challenges such as metering gaps and weak distribution infrastructure.

But industry watchers believe outcomes will depend on the technical capacity of state regulators, policy coordination, and the ability to maintain consistent standards.