Photo File: National Power Grid

Seven Nigerian states — Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi — have officially taken over the regulation of electricity markets within their territories, in line with the provisions of the Electricity Act 2023 signed into law by President Bola Tinubu.

The Nigerian Electricity Regulatory Commission (NERC) confirmed this landmark development, disclosing that 11 states in total had initiated the transition process, while seven have fully assumed regulatory control. Additional states such as Lagos, Ogun, Niger, Plateau, and Anambra will complete their transitions between June and September.

The decentralisation brought by the Electricity Act 2023 effectively dismantles the Federal Government’s monopoly over electricity regulation, previously exercised solely by NERC. Now, state governments have the legal autonomy to generate, transmit, distribute, and regulate power within their borders.

“So far, 11 states have commenced the transition process, with seven states — including Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi — already transitioned,” NERC stated in a recent presentation at a stakeholders’ meeting in Lagos.

The commission also revealed that each state’s transfer order comes with a six-month operational handover period, after which the state assumes full regulatory control. For example, Lagos and Ogun are set to complete their transitions this June, while Niger and Plateau will follow in July and September respectively.

Meanwhile, Anambra, having passed its electricity law, has launched the Anambra State Electricity Regulatory Commission under Governor Charles Soludo.

While stakeholders see the move as a step toward energy decentralisation and improved competitiveness, it has also raised concerns about states’ capacity to effectively manage such a technically demanding sector.

Industry experts have pointed to issues such as capacity gaps, subsidy management, and regulatory clarity, especially with the perceived erosion of NERC’s central authority.

In states where NERC has relinquished authority, power distribution companies (Discos) are required to incorporate subsidiaries that will operate under state laws. For instance, the Enugu Electricity Distribution Company has established a new entity, Mainpower Electricity Distribution Limited, to handle electricity distribution under the newly formed Enugu State Electricity Regulatory Commission.

While some industry players remain skeptical about the readiness of states for the new role, others have hailed the shift as a positive turnaround that could attract new investments and foster more efficient energy delivery systems.

The Electricity Act 2023, passed under President Tinubu’s administration, marks a historic shift in Nigeria’s power sector governance, moving the nation from a centrally regulated structure to a federated, state-led model that reflects the federal nature of Nigeria’s constitution.