In a move towards decentralising Nigeria’s power sector, the Nigerian Electricity Regulatory Commission (NERC) has cleared 17 states to take over the regulation of electricity markets within their boundaries.
The Commission’s latest approval, which brings Akwa Ibom State into the fold, signals the growing momentum of the Electricity Act 2023, which empowers states to establish their own regulatory frameworks for intrastate power generation, distribution, and supply.
NERC had earlier confirmed that 16 states had fully transitioned to state-level regulation as of July 22, 2026. With Akwa Ibom now admitted, the tally has climbed to 17, though the South-South state is expected to finalise its full transition by February 2027.
Under the new arrangement, NERC will retain oversight of federal and interstate electricity activities, including transmission, international generation, and system operations. States, however, will now have direct control over power distribution and supply within their territories.
For Akwa Ibom, NERC has directed the Port Harcourt Electricity Distribution Plc (PHEDC) to establish a subsidiary—PHEDC SubCo—to handle intrastate electricity services in the state. The subsidiary must be incorporated within 60 days from August 18, 2026, after which it will apply to the Akwa Ibom State Electricity Regulatory Commission (AKSERC) for an operational licence.
All related transfers must be completed by February 17, 2027, according to the Commission’s order.
The push for state-level regulation has gained traction since the Electricity Act 2023 replaced the centralised model that previously placed all regulatory authority under NERC. States such as Ogun, Edo, Oyo, Kogi, Plateau, Nasarawa, Bayelsa, and Anambra have already assumed regulatory oversight, with more expected to follow.
NERC has also unveiled a directory of State Electricity Regulatory Commissions to help consumers, investors, and stakeholders identify the appropriate regulatory body in each state.
Industry observers view the development as a critical step towards addressing long-standing inefficiencies in Nigeria’s electricity market. By bringing regulation closer to the people, states are expected to implement policies tailored to their unique energy needs, attract private investment, and enhance service delivery.
However, concerns remain about the capacity of state regulatory bodies to effectively manage the transition and ensure stable electricity supply. Stakeholders are watching closely to see whether the decentralisation will deliver tangible improvements or create new bureaucratic bottlenecks.
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