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NERC transfers market regulatory oversight to Nasarawa electricity commission

THE Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of the electricity market in Nasarawa State to the newly created Nasarawa State Electricity Regulatory Commission (NASERC).

The commission noted that this was compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.

The transfer, which was announced in an official order issued by NERC, on Saturday, August 2, directed Abuja Electricity Distribution Plc (AEDC) to incorporate a new subsidiary, AEDC SubCo, within 60 days from August 4, 2025, to handle intrastate electricity supply and distribution in Nasarawa. 

The sub-company is expected to obtain an operating licence from NASERC, which will now oversee all electricity activities within the state’s borders.

It also noted that the new directives are to be fully transferred to the Nasarawa commission by February 3, 2026.

The ICIR reports that the handover was on the heel of the decentralisation introduced by the Electricity Act 2023, which allows Nigerian states to set up their own electricity markets, regulate intrastate supply, and license local players. 

The Act, which marked a shift from the federal government’s exclusive control over electricity, previously enshrined in the 1999 Constitution, however, retains NERC authority over interstate and international electricity generation, transmission, trading, and system operations. 

Under the amended Act, it is required to transfer regulatory authority to any state that formally establishes a regulatory body and requests the transfer.

With this, Nasarawa joined some states, such as Lagos and Edo States, to take over the state’s electricity mandate following the constitutional amendment. 

In December 2024, NERC transferred the regulatory oversight of the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission.

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Some months earlier in August 2024, the commission officially announced the transfer of regulatory oversight of the electricity market in Edo State to the Edo State Electricity Regulatory Commission.

The order instructed the Benin Electricity Distribution Company (BEDC) to establish a subsidiary, known as BEDC SubCo, which will take over the responsibilities for intrastate electricity supply and distribution within Edo State

Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M

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