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The Nigerian Electricity Regulatory Commission on Friday issued an order transferring regulatory oversight of Niger State’s electricity market to the Niger State Electricity Regulatory Commission.
With this approval, Niger State becomes the ninth state to regulate its electricity market, joining Imo, Enugu, Ekiti, Ondo, Oyo, Edo, Kogi, and Ogun states.
The approval empowers the newly established NSERC to oversee the electricity sector within the state, in line with the recently amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
NERC clarified that while it remains the central regulator for inter-state and international electricity operations, states are authorised to regulate their intra-state electricity markets, provided they formally request the transfer and comply with regulatory processes.
The Commission stated that the Niger State Government had formally notified it of its intention to assume the regulatory role and had met all conditions stipulated by law.
The order, titled “Transfer of Regulatory Oversight of the Electricity Market in Niger State to NSERC,” reads in part, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Niger State from the Commission to the Niger State Electricity Regulatory Commission.”
NERC emphasised that it retains its role as the central regulator for inter-state and international electricity generation, transmission, supply, trading, and system operations.
Under the directive, NERC instructed Abuja Electricity Distribution Plc to incorporate a subsidiary, AEDC SubCo, to manage intra-state electricity supply and distribution in Niger State. AEDC must complete the incorporation of the subsidiary within 60 days, starting 10th January 2024, after which the sub-company will apply for and obtain a licence from NSERC.
Similarly, Ibadan Electricity Distribution Company Plc was directed to create a subsidiary, IBEDC SubCo, to handle intra-state electricity supply and distribution in Niger State, with the same timeline for incorporation and licensing.
NERC mandated that all transfers outlined in the order be finalised by 9th July 2025.
The Commission also stipulated that both AEDC and IBEDC subsidiaries must adhere to the legal and operational requirements to ensure a smooth transfer of responsibilities.
