ABIA State government on Wednesday, June 25, obtained the Federal Government’s approval to regulate its electricity market, making it the 10th state to do so under the Electricity Act 2023.
The Nigerian Electricity Regulatory Commission (NERC), which announced this development on its social media account, stated that it had transferred regulatory oversight to the newly established Abia State Electricity Regulatory Authority (ASERA)
The NERC said the move followed Abia’s compliance with the constitutional and legal requirements for such a transition.
“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023(Amended), the Nigerian Electricity Regulatory “Commission” has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA),” the commission stated.
The statement noted that the government of Abia State complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of the interstate electricity market in Abia State.
This development places Abia alongside Imo, Enugu, Ekiti, Ondo, Oyo, Edo, Kogi, Ogun, and Niger States, each of which now exercises local control over their electricity markets.
As part of the transition, the Enugu Electricity Distribution Company (EEDC) is required to create a subsidiary-EEDC SubCo, within 60 days to manage intrastate electricity supply in Abia.
The SubCo must also obtain a distribution licence from ASERA.
To this end, NERC has directed that all related transfers must be concluded by December 24, 2025.
Notably, the Electricity Act consolidates all legislation dealing with the electricity supply industry to provide an ideal institutional framework to guide the post-privatisation phase and encourage private sector investments in the sector.
The primary aim of the Act, as stated in its first section, is to create a comprehensive legal and institutional framework to guide the Nigerian electricity supply industry (NESI).
The ICIR reported that states are firming up control of regulatory oversight of electricity business in their respective territory with the support of the (NERC).
This development followed the latest transfer of regulatory oversight of the Enugu electricity market to the Enugu Electricity Regulatory Commission (EERC) by NERC.
The states’ control came on the heels of the Electricity Act 2023, signed by President Muhammadu Buhari and later amended by President Bola Tinubu.
The Act removed power generation, transmission, and distribution from the exclusive legislative list, effectively ending the federal government’s sole jurisdiction over these areas.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.